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n e w h a v e n b i z . c o m n e w h a v e n B I Z 23 S U B WAY Subway moves to freshen marketing message V iewers of the recent Netflix movie To All The Boys I've Loved Before likely saw product placements for Subway in several scenes of contemporary high school life. "Had a Subway craving!" a friend texts the main character, a lovelorn teen named Lara Jean, going so far as to use a Subway-branded emoji. The two teens later share Subway sandwiches under the bleachers as they talk about their love lives. The film's producers called the Milford company first to make the placement happen, according to Subway Chief Advertising Officer Chris Carroll. Subway said yes — and found its product prominently featured in one of the summer's biggest teen hits. The move fits well into Subway's new adver- tising strategy of appealing to millennials seeking individuality, quality and call-outs to their casual lifestyles. After the departure of marketing chief Karlin Linhardt last year, Subway turned to outside agency Dentsu Aegis Network to find teams willing to shake up their advertising program. The results were a new logo and a new slogan: "Make It What You Want." You'll also see more quirky videos, outdoor ads and so- cial media influencer outreach. "We needed to catch up to where the consumer was going, it's where the where the guests are going," Car- roll explains. "We've done that from a product standpoint and a messaging standpoint." Drivers on I-91 in Milford and across the New Haven area have been viewing large billboards touting Subway's new menu items as part of the chain's outdoor advertising strategy. Other product placements in re- cent years have included TV shows like The Biggest Loser, Nashville and Community. But as Subway has learned the hard way, innovative marketing can backfire. Tipped off by a story in a student newspaper, a Chicago-area franchisee approached Subway's ad agency in 1999 with a great idea — follow the weight-loss journey of a student named Jared Fogle. Eating nothing but low-calorie Subway offerings, Fogle had lost more than 200 pounds and he soon became the chain's national pitchman. By 2013, he had appeared in more than 300 commercials and was credited with helping to triple sales to $11.5 billion in 2011, from around $3 billion in 1998, according to Nation's Restaurant News. Then disaster struck: The FBI and Indiana State Police raided Fogle's home on July 7, 2015, and seized evidence of child pornography and child rape. He later pleaded guilty to two charges. Sub- way cut ties with Fogle immediately, but the dam- age had been done: The chain's close association with him helped to accelerate a decline in sales due to rising competition, according to analysts. "Fogle had helped give Subway the perception that it was healthy, and that perception carried the chain for years and even lifted other sandwich chains' own health perceptions," said Jona- than Maze of Restaurant Business. "And, you know, it's just never good when your longtime spokesman gets arrested," Maze added. Even the Subway plug in the popular Netflix teen flock To All The Boys this summer raised some hackles. Skeptics on social media lampooned the bluntness of the plug, according to Business Insider. "The wildest part of To All The Boys I've Loved Before is the punk friend who can't stop talking about Subway," said one poster. But Business Insider added that the product placement seemed to be working, with its own entertainment correspondent reporting a myste- rious craving for Subway after viewing the film. Now Subway is also seeking to regain its reputation as a healthy fast-food option by touting low-calorie and chemical-free offerings. Unfortunately for the chain, however, the bar has been raised on what is considered "healthy." "Today, people are ever more educated on nutrition, food sourcing and ethical holistic busi- ness models," Sara Bamossy, the chief strategy officer at ad agency Pitch, told Business Insider. "It is not enough to label something as 'natural' and it's not enough to be affordably priced." n — L.K. vidual Subway owners, according to Shearer. As the agents are also responsible for ensuring that independent franchisees are in compliance with Subway's strict operations manual, there is an inherent conflict of interest, he adds. Discount- ing adds to the pressures on franchisees. "You'd be hard pressed to say that business is good," Shearer said. "ese stores don't make a lot of money from what I've seen." A flashpoint occurred late last year when in December corporate announced plans to kick off 2018 with a revival of the popular $4.99 foot-long sub promotion in hopes of resuscitating flagging sales. is was more than many franchisees, especially smaller store-owners, could bear. Dozens of them joined forces to petition Milford to scrap the promo- tion, arguing that it would place undue pressure on their already beleaguered bottom lines. In this case at least corporate responded to franchisee pushback, parting ways with market- ing head Karlin Linhardt, who had been on the job just nine months. It was Linhardt who had authored the return of the $4.99 footlong pro- motion. e New York Post called Linhardt the "first scalp" claimed by irate Subway franchisees. More recently, acting Subway CEO Trevor Haynes told USA Today on Sept. 10 that going forward, offering the $5 sandwich deal will be optional for franchisees. In many markets, the $5 doesn't make sense for franchisees, Haynes admitted. e parent company is open to offering more flexibility on pricing and offerings. "How do we help our fran- chises with more of a regional value message, so they're able to [have] a value proposition that fits with their economic model," Haynes said. e new management team is also looking to expand offerings beyond traditional subs to paninis and other options. Wraps have been introduced along with more subs featuring rotisserie-style chicken. On a recent visit to a North Haven subway, lower-calorie "Fresh Fit" options were prominently displayed, along with antibiotic-free chicken and other appeals to health-conscious diners. A new selection of wraps with pre-selected items has also boosted traffic since they were introduced in March, Chief Advertising Officer Chris Carroll says. Coming soon with be more sandwiches featuring steak and "cheesy garlic" as a new bread option. Expect more foodie ingre- dients as trend-tracking firm Tastemade helps Subway roll out more new items later this year. Other recent initiatives include the Fresh For- ward redesign aimed at updating store interiors, says Subway spokesperson Kevin Kane. So far Continued on Page 45 Subway's new 'Fresh Forward' offerings emphasize consumer choice and healthier options.

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