In response to escalating inflation and rising ingredient costs, Subway India has made significant adjustments to its menu offerings, including the removal of the complimentary cheese slice from its sandwiches. This strategic move, perceived by analysts as a cost-cutting measure, aims to strike a balance between maintaining customer satisfaction and managing expenses.
The renowned American chain, which boasts approximately 800 outlets in India, has opted to discontinue the inclusion of a free cheese slice in most of its sandwiches. Instead, customers will now have the option of adding a “cheezy” sauce, provided at no extra charge. The decision to modify the menu reflects the global trend of fast-food chains navigating the challenges posed by fluctuating ingredient prices, particularly in the dairy sector.
The heightened cost of dairy products has presented a challenge for fast-food giants operating in India, compelling them to find innovative ways to trim costs while upholding their commitment to quality. Notably, Domino’s, a prominent player in the market, has faced a surge of approximately 40% in cheese prices during the financial year that concluded in March.
Subway’s move to substitute the free cheese slice with a cheese sauce has garnered mixed reactions from the public. While some patrons appreciate the endeavour to enhance the sandwich experience, others have expressed disappointment over the alteration. The decision has been met with a minor backlash, as demonstrated by social media comments from individuals who felt a connection with the erstwhile offering.
The new cheese sauce, characterized as a “liquid cheese blend,” carries an approximate cost of Rs. 400/kg. Comparatively, conventional cheese slices usually command around Rs.700/kg in the market. Culinary Brands, managed by Everstone Group, which oversees the supply chain for Subway’s outlets and holds the master franchise for around 200 locations, clarified that this change is intended to improve the quality of their subs.
While this menu adjustment may lead to a modest increase in sandwich prices, it is viewed as an alternative to a blanket price hike, allowing the company to manage the impact of inflation on customers more strategically. This approach aligns with the evolving landscape of Indian restaurants, where adapting to market dynamics while catering to consumer expectations is paramount.
Subway’s decision is emblematic of the broader challenges that the food industry in India is grappling with, as elevated food prices prompt players to innovate and optimize their offerings in order to remain competitive. As the country’s central bank raises its inflation forecast, it’s clear that these strategic adaptations will remain in focus as businesses navigate a complex economic environment.