Subway is expanding its presence in the UK with new store formats as competition from coffee shops and takeaway food providers intensifies. The chain, which has about 2,000 outlets in the UK, is testing a new format at one store in London and two in the Netherlands. The new format includes at least four self-service kiosks, ready-made sandwiches, and other payment methods using a phone. This will be rolled out to 80 new stores expected to open next year and some existing outlets. Subway is also expanding its product range to compete with Greggs and McDonald’s in the breakfast and dinner markets. The chain is equipping all its franchise partners with coffee machines and aims to launch hot evening food by the end of the year.
New competition from Subway’s major US rival Jersey Mike’s, which opens its first UK outlet next month, has intensified the challenge. Costa is also expanding its food ranges, and Greggs has captured McDonald’s position as the UK’s biggest takeaway breakfast provider in 2024. Subway is now focusing on breakfast and dinner in the UK as it seeks to retain customers who primarily buy their lunch at Subway.
The report also highlights the impact of Middle East shipping attacks on global markets. Attacks on tankers near the Strait of Hormuz have raised concerns about oil supplies, leading to a rise in oil prices and higher bond yields. The attacks have also prompted the White House to consider options for strikes against Iran before the US midterm elections.