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Company focus

Subway

Why has Subway's Italian BMT sandwich seen a 15% drop in sales over the past month?

Prepared by NextSprints

12 mins
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Data Analysis Hypothesis Formation Problem-Solving Fast Food Restaurant Retail Product Strategy Root Cause Analysis Food Industry Customer Behavior Sales Decline
Product Management Root Cause Analysis Question: Investigating Subway sandwich sales decline

Introduction

The recent 15% drop in sales of Subway's Italian BMT sandwich over the past month is a concerning trend that requires immediate attention. To address this issue, I'll employ a systematic approach to identify, validate, and resolve the root cause while considering both short-term and long-term implications for the product and business.

Framework overview

This analysis follows a structured approach covering issue identification, hypothesis generation, validation, and solution development.

Step 1

Clarifying Questions (3 minutes)

  • Considering the timing, I'm wondering if there have been any recent changes to the Italian BMT recipe or ingredients. Have there been any modifications to the sandwich composition in the last 1-2 months?

Why it matters: Recipe changes can significantly impact customer satisfaction and sales. Expected answer: No recent changes to the recipe. Impact on approach: If there were changes, we'd focus on customer feedback regarding taste and quality.

  • Looking at the sales data, I'm curious about the broader context. Has this 15% drop been consistent across all Subway locations, or are there regional variations?

Why it matters: Regional variations could point to localized issues or competition. Expected answer: The drop is relatively consistent across regions. Impact on approach: If regional variations exist, we'd investigate location-specific factors.

  • Considering potential external factors, I'm thinking about seasonal trends. Is this 15% drop unusual compared to the same period in previous years?

Why it matters: Seasonal fluctuations could explain the sales decrease. Expected answer: This drop is atypical for this time of year. Impact on approach: If seasonal, we'd focus on why this year differs from previous patterns.

  • Given the specific nature of the drop, I'm wondering about our promotional activities. Have there been any changes to how we market or promote the Italian BMT in the past month?

Why it matters: Changes in marketing strategy could directly impact sales. Expected answer: No significant changes in marketing efforts. Impact on approach: If marketing changed, we'd analyze the effectiveness of new strategies.

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Updated Jan 22, 2025