Subway's Unprecedented Cookie Craze Triggers Supply Crunch

Subway, an iconic fixture in fast food, has once again hit the headlines, but this time it's not for its signature subs. In a surprising turn of events, the sandwich giant has been overwhelmed by the popularity of its latest offering - the footlong cookie - causing a shortage less than two weeks following its grand introduction. The new Sidekick snacks, which also include a partnership with Cinnabon for a churro and Auntie Anne’s for a soft pretzel, have been selling like hotcakes, or, more fittingly, like freshly baked cookies.

The company rolled out the new snacks on January 22, expecting them to complement their existing menu, but they turned out to be a runaway success. According to Subway, more than 3.5 million Sidekick items have been sold, and the company is now facing the uphill task of replenishing its stock to satisfy the unexpected surge in demand. In an effort to efficiently manage the situation, Subway has taken the footlong cookies off its app and third-party delivery platforms such as DoorDash but assures that customers can still access other digital orders for the soft pretzel and churro.

Subway CEO John Chidsey has publicly shared the company's excitement about the Sidekicks success, stating, “Sidekicks are a big hit with guests and the latest proof that Subway is a remarkably different brand than it was when we began our transformation journey three years ago — and we’re not slowing down.” This enthusiasm echoes the brand's broader transformation agenda, which includes an aggressive global expansion and an overhaul of its menu and service offerings.

In addition to sharing the Sidekicks sales figures, Subway has also offered insights into the financial health of the brand, revealing a 5.9% year-over-year increase in sales for stores open at least a year in North America for 2023. Moreover, for the first time in six years, the number of new Subway restaurant openings has exceeded closures, suggesting a period of growth for the business. A massive global push, especially in China, where the brand plans to open 4,000 new locations in the next twenty years, is a keystone of this strategy.

The Subway of today bears little resemblance to the chain of yesteryears thanks to the transformative efforts under Chidsey's management. A renewed focus on menu customization, mobile order incentivization, global market penetration, and quality enhancements like freshly-sliced meats have marked its path to reinvigoration. However, it is worth noting that amidst these strides, some franchisees have voiced their dissent, specifically concerning the new slicers' $6,000 price tag, which has sparked some debate within the franchise community.

While the current cookie shortage represents a logistical challenge for Subway, it's also a clear indication of the brand's resonance with new and exciting menu items, and the company's shift toward a more agile and responsive business model. The footlong cookie may have crumbled under demand this time, but Subway's adaptation and subsequent success provide a recipe other fast-food chains could well be eager to follow.