Inside Retail Asia – Subway India to launch cafes

In Elargir Press Coverage by Elargirindia0 Comments

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American salads and sandwiches maker Subway is expanding its menu to include coffees and pastries.

Subway India plans to follow the footsteps of burger maker McDonald’s by opening cafes to lure more customers all throughout the day.

Subway Asia regional director Karen Eidsvik Moody said: “We are launching Subway Cafe with proper coffee machines and pastries to fill the morning and afternoon part when some people don’t really want sandwiches.”

“As people taste evolves and more competition come in, that also helps build the whole business,” she said.

Analysts are skeptical about its plan as competition in the country’s coffee market becomes tougher. Even the existing coffee chains are finding it difficult to thrive due to tough competition and consumers’ curb on spending.

“Subway is known for sandwiches and it will also take time for consumers to accept its change in menu,” said Ruchi Sally of retail consultancy Elargir Solutions.

But Subway is strong-willed to pursue the plan and open further to have 700 stores by 2015 from 430 now.

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