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Subway expands menu in major revamp as it faces fierce competition from Greggs

2025-10-13 04:03:24 By

Subway has overhauled its menu as part of a new marketing strategy aimed at boosting UK sales.

The fast-food giant will be testing a customisable jacket potato in 170 UK stores, attributing the decision to the potato's recent social media "renaissance" and "fame on social media," as reported by City AM.

Deniz Safa, Director of Innovation & Culinary at Subway EMEA, stated that the move was due to the "surging popularity" of jacket potatoes and "growing consumer demand."

Subway has been facing stiff competition from brands such as Greggs and Pret in recent years, with Greggs recently surpassing Subway in terms of total UK restaurants.

Edurne Uranga, VP of Foodservice Europe at Circana, noted that quick-service restaurants like Subway are in "fierce competition... not just against each other, but also with major European supermarkets like Tesco, Mercadona, and Edeka."

She added that "these grocery giants are becoming formidable rivals, offering convenient meal options that challenge traditional quick service food."

"It's a battle for the consumer's palate, where both sectors are vying to capture the attention of hungry customers looking for convenience, variety, and value."

In an effort to attract more UK customers, Subway rolled out its new store layout, Fresh Forward 2.0, last November.

The chain described the plan as "the next iteration of its global restaurant image, designed to further enhance the guest experience, improve convenience and help drive franchisee profitability."

Subway unveiled a significant menu refresh in 2023, which represented the brand's most substantial menu evolution in nearly six decades.

Criticism arose concerning Subway's aggressive expansion strategy during the 1990s and 2000s, as it was argued that an oversaturation of outlets impeded the profitability of franchise partners.

Operating under a franchise model, Subway enables independent business owners to manage individual stores under its brand umbrella.

Despite closing approximately 7,000 global locations from 2015 to 2024, including over 400 in 2023 alone, Subway experienced a change in fortune after its acquisition by private-equity firm Roark Capital in May 2024 for $9bn (£7.12bn).

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Fashion firm Barbour launches second clothing collection with TV star Alexa Chung

Tyneside fashion firm Barbour has teamed up with TV presenter and model Alexa Chung to launch a new clothing collection. The South Shields firm, which can trace its history back to 1894, may have started out making waxed jackets for fishermen but its quilted coats and jackets are now worn by everyone from farmers and footballers to rock stars and royalty. And in more recent years Barbour has worked with famous names including ceramics designer Emma Bridgewater, House of Hackney, William Morris and film director Sir Ridley Scott, as it looks to widen the appeal of its clothing beyond its traditional base in rural communities. Now the firm – which has seen its star rise with young people after its jackets were worn by pop star Dua Lipa, Arctic Monkeys, Lily Allen,and Rufus Wainwright – has teamed up with TV star Alexa Chung for a second time, launching a new capsule collection and a campaign starring the presenter herself. Ms Chung, collaborated closely with the in-house design tea but was creative director and designer for the clothing collection, which draws inspiration from nostalgic camping days as well as Ms Chung’s festival styling. The collection includes outerwear, clothing and wellington boots, with showerproof jackets with tartan liners, bomber jackets with cord collars and knitwear made by Harleys of Scotland. It also includes rubber footwear, including a slip-on clog and a wedged wellington boot. She said: “I’m in love with the second collection I have designed for Barbour. I think the codes and language we have built together are now well established in that we create playful takes on Barbour’s heritage. My particular favourites in the collection are the bright yellow jacket and fire engine red raincoat. I really focused on colour and fun and I think that idea carried through to our camping trip themed shoot, with the legendary Tim Walker. This collection brings me so much joy and I hope you like it as much as I do.”

Boss of South West Water owner has 'regret' for pollution incidents

The boss of Pennon says she has “regret” for the pollution incidents caused by the utilities firm. Chief executive Susan Davy, whose company owns South West Water, Bristol Water, Bournemouth Water and SES Water, admitted to a group of MPs that "from time to time things do go wrong". There were 194 individual pollution incidents across the Pennon group between 2023 and 2024, and the company was fined £2.2m in 2023 for illegal sewage spills spanning four years across Devon and Cornwall. Ms Davy said: “I absolutely regret and do not condone those incidents and pollutions that we had. We do not want to harm the environment, that is not the activities that we undertake everyday. “We have hundreds of treatment works and thousands of pumping stations and from time to time things do go wrong.” The comments follow a major incident in Brixham, in Devon, last year, which saw a parasite outbreak in the water supply. The diarrhoea-inducing cryptosporidium was discovered in a reservoir in May, prompting 17,000 households to boil their drinking water for eight weeks. The company was compelled to clean and flush its water network 27 times, in addition to replacing sections of its grid. As a result, in November, Pennon revealed that its underlying pre-tax profit had plummeted from a £19.1m profit in the first half of last year to an £18.6m loss. Ms Davy told MPs on Tuesday: “I absolutely understand how devastating that incident was for that community and for the customers who were poorly… it was a really horrible time for them. I am always sorry when something happens whether to our customers or to the environment,” she added. Despite the company coming under fire for pollution incidents, Ms Davy saw her pay package jump 58% last year after picking up a £298,000 share award. Her total pay increased to £860,000 in 2023-24 from £543,000 the previous year. Last month, Pennon announced plans to raise £490m by issuing new equity shares through a rights issue. The company said at the time that investors would be able to acquire 13 new shares, at a cost of 264p each, for every 20 they already own.

UK inflation hits 3.0% in January to challenge Bank of England as cost fears continue

Inflation has risen more rapidly than anticipated at the beginning of the year, according to official data, fuelling concerns about persistent price pressures in the economy. The Office for National Statistics (ONS) reports that the headline rate of inflation increased to 3.0 per cent in January, up from 2.5 per cent in December and exceeding the 2.8 per cent predicted by City traders. Grant Fitzner, chief economist at the ONS, said: "Inflation increased sharply this month to its highest annual rate since March last year," He attributed the rise to air fares not falling as much as typically seen at this time of year, partially due to the timing of flights over the Christmas and New Year period. This news follows recent figures showing an acceleration in wage growth in the final quarter of last year, pushing regular private sector pay to its highest level since November 2023. Coupled with a surge in inflation, these statistics highlight the ongoing inflationary risks confronting the UK economy, necessitating a "gradual" approach to interest rate cuts by the Bank of England. The Bank's latest forecasts suggest that inflation will peak at 3.7 per cent later this year, driven by escalating energy prices and increasing regulated prices, such as water bills and bus fares. However, Andrew Bailey, Governor of the Bank, stated that the expected rise in inflation does not reflect "a story about the fundamental state of the economy," as it is largely influenced by external factors. The Bank anticipates ongoing progress in services inflation and wage growth throughout the year, which will facilitate additional interest rate reductions. Market predictions suggest two more rate cuts this year, as reported by City AM. Rachel Reeves said her “number one mission” was getting “more pounds in pockets” after the rate of Consumer Prices Index inflation increased to 3% in January, according to the Office for National Statistics. The Chancellor said: “Getting more money in people’s pockets is my number one mission. Since the election we’ve seen year on year wages after inflation growing at their fastest rate – worth an extra £1,000 a year on average – but I know that millions of families are still struggling to make ends meet. “That’s why we’re going further and faster to deliver economic growth. By taking on the blockers to get Britain building again, investing to rebuild our roads, rail and energy infrastructure and ripping up unnecessary regulation, we will kickstart growth, secure well-paid jobs and get more pounds in pockets.” Just a few days ago, Andrew Bailey told BusinessLive the Bank would continue to take a ‘gradual and careful’ approach to any rate cuts.

'VAT costs are killing industry' - Exeter salon boss warns chancellor ahead of Spring Statement

An Exeter hairdresser is among UK salon owners urging the chancellor to throw the sector an "economic lifeline" as a new report highlights how an unbalanced tax system is "decimating" the industry. Nathan Plumridge, owner of Darts Farm-based Energy Hair, has warned VAT costs are "killing the industry". His business, which employs 25 staff, is also about to see its wage bill rise by £50,000 following Rachel Reeves' national insurance (NI) hike for employers. "It’s not a pretty picture for the industry," he told Business Live. "It’s really alarming. When you look at the amount of salons shutting down and then reopening up as a self-employed salon. It’s having an impact on education and standards." Mr Plumridge says the main issues for salon owners are increased NI contributions and rates of pay. He says the costs will make a "massive dent" in the number of apprentices business like his can afford to take on. "Business are not going to be employing as many people because of the cost and it stifles growth. A lot of salons are still reeling from the impact of Covid and the problems are being compounded by these other financial challenges." The entrepreneur says salons are "cautious" about hiking prices, but rising costs may mean there is no option but to do it. "If nothing is announced [in the Spring Statement], it will lead to more closures within the sector. It’s a micro industry and run generally by owner operators who are on the floor… people are still feeling the impact of Covid and any additional pressure is coming out of the bottom line. So what do you do?" According to analysis commissioned by independent consultancy CBI Economics, unless changes are made within the industry there will be no new apprenticeships by 2027 and a 93% fall in employment by 2030. The British Hair Consortium, which represents 50,000 UK hairdressing professionals, is calling for Rachel Reeves to halve the VAT salons pay on labour costs to 10% to help them overcome recruitment challenges. “Our industry has been ignored for years and we’re calling on the government to correct decades of mismanagement,” said Toby Dicker, co-founder of the British Hair Consortium. “Most owners haven’t had a pay rise in many years and simply can’t consider expanding their business, let alone take on an apprentice. “A one-size-fits-all tax system doesn’t work and has created an unlevel playing field. Increasing numbers of owners are either closing their salons or changing their employment practices and are renting chairs to contractors just to survive. This report shows how cutting VAT to 10% won’t cost the Government a penny. It would save salons across the country and ensure the future of our industry which sits at the heart of the high street.”

Luxury stocks bounce back as high street brands Asos and Primark struggle

Luxury stocks are once again outpacing high street brands as investors anticipate a luxury resurgence. Brands that faced difficulties last year, such as Burberry and Kering, are making a comeback, while firms heavily reliant on physical stores like Primark are finding it tough, as reported by City AM. The top ten luxury retailers by market cap have seen their stock price increase by an average of 19 per cent so far this year. In contrast, high street stocks have only risen by 11 per cent, with the share prices of JD Sports, Asos and Primark-owner ABF declining in the past two months. The average performance of high street stocks has been buoyed by German retailer Zalando, which has seen a 23 per cent rise in its share price this year. The e-commerce giant's share price has rocketed by 101 per cent over the past year, significantly outperforming its competitors. "Over the past year, lower-cost high-street brands fared better in general as value-conscious consumers prioritised affordability amidst sticky inflation," said Lale Akoner, global market analyst at eToro. "Yet some of the most recognisable names to British shoppers within our basket – Asos, JD and Primark – were not part of this growth. Instead, they were burdened by persistent inventory and profitability issues, highlighting the pressures facing fast fashion in a competitive, discount-driven environment." Seven out of the ten largest listed high street firms have seen their share prices fall over the past five years. Despite a significant downturn in the post-pandemic period due to weak demand from China and overstretched European consumers, luxury is making a comeback. Burberry is poised to rejoin the FTSE 100 after being dropped from the index last September, and even Kering, which has been struggling, has seen its share price increase by 19 per cent since the start of the year. The luxury sector received a boost following impressive results from Richemont in January, which lifted luxury stocks globally. RBC analysts Piral Dadhania and Richard Chamberlain predicted late last year that the luxury market would see an upturn in 2025, with promising opportunities in North America and a stabilisation of the Chinese market. "Whilst luxury has generally been a tough sector [in the second half of 2023 and in 2024]... the setup is improving," the analysts stated. However, Akoner cautioned that "it will take some time for [troubled stocks] to claw back their share price, especially as the Chinese economy is still facing challenges." Hermes continues to outperform, with its stock price increasing by 296 per cent over the past five years and 21 per cent since the start of the year.

Newcastle shopping destination Eldon Square appoints new director

A new boss has been appointed to lead Newcastle city centre’s premier shopping and leisure destination Eldon Square. Helen Cowie has been named as the new centre director for Eldon Square, one of the UK’s most visited city centre shopping malls with more than 26.5m people stepping into its shops every year. Ms Cowie, was born and raised in the region and has lived in the North East all her life, has more than 30 years of experience within retail, joining the centre after holding senior positions at high street retailer Marks and Spencer across a number of regions, including Scotland, North East and North West England. She has visited Eldon Square from a young age and, stepping into the leadership role, says she is excited to be part of its future and passionate about boosting its reputation across the region. She said: “I’m extremely excited to be joining Eldon Square during this transformational period for the centre. Eldon Square is more than just a shopping centre, it’s an integral part of Newcastle City Centre with a mission to elevate itself to becoming the go to retail and leisure destination in the North East. Along with my team, I look forward to continuing to enhance the shopping experience and making a positive impact on the future of this iconic Newcastle destination.” Matthew Beddow, senior director of asset management at Eldon Square, said Ms Cowie’s experience in establishing new business streams will help drive innovation across all aspects of Eldon Square’s continuing development. He added: “We are thrilled to welcome Helen Cowie to the Eldon Square team. Helen’s wealth of experience and passion for delivering an excellent customer experience will be instrumental in shaping the future of the centre. With her strong background in the sector and her deep understanding of the evolving retail, leisure and entertainment landscape, Helen is well positioned to lead Eldon Square through this exciting chapter.” Ms Cowie’s arrival coincides with a major investment programme at Eldon Square, which provides more than 4,000 jobs across more than 140 retailers. New investments this year will include a huge new Next store, which will include a Bath and Body store, River Island’s relocation, and darts bar Flight Club. Elsewhere in the complex Freight Island – a huge entertainment and dining destination inspired by Coney Island in New York – is set to land in the former Debenhams unit later this year.

Holiday Inn owner IHG expands portfolio amidst robust travel market recovery

Holiday Inn owner IHG is celebrating the acquisition of its 20th brand and heightened returns for shareholders amidst a resurgence in the travel sector. The company, based in Windsor, has seen its fortunes ascend as travel regains momentum post-pandemic, with early projections for 2024 indicating that the hotel industry's revenues have eclipsed those of 2019, as reported by City AM. In a statement to the markets this morning, IHG revealed that its revenue climbed to $2.3bn (£1.82bn) in 2024, marking a 7% increase from $2.1bn in the previous year. Operating profit experienced a 10% rise to $1.1bn, while earnings per share saw a significant 15% climb to 434.4 cents. Despite the positive financial indicators, IHG's share price experienced a slight downturn, dropping by 1.73% in early trading. The hospitality giant, known for owning rights to a plethora of prominent brands including Crowne Plaza, Six Senses, and Staybridge Suites, primarily adopts a franchise business model. This past year, IHG launched 59,100 rooms across 371 hotels, which is a 23% year-on-year surge, bringing their worldwide portfolio to 987,000 rooms at 6,629 properties. Furthermore, IHG's development pipeline is robust, featuring 325,000 rooms across 2,210 hotels, boasting a 10% year-over-year growth. "2024 was an excellent year of financial performance, strong growth and important progress against a clear strategy," commented Maalouf. "We continue to strengthen our enterprise to position IHG as the first choice for guests and owners, further improving and growing our brands, driving loyalty contribution, rolling out new hotel technology and increasing our ancillary fee streams," she elaborated. In conjunction with its latest results announcement, the hotel conglomerate revealed that it has acquired Ruby, a European urban lifestyle brand, for €110.5m (£91.6m). Ruby, which was established in 2013 and currently operates 20 hotels across Europe, including three in London, has become the 20th brand under the hotel giant's umbrella. "We see excellent opportunities to not only expand Ruby's strong European base but also rapidly take this exciting brand to the Americas and across Asia, as we have successfully done with previous brand acquisitions," said Elie Maalouf, CEO of IHG Hotels & Resorts. The company praised Ruby's "space-efficient designs" and "attractive, flexible concept that IHG expects to rapidly expand globally." "This acquisition demonstrates our focus on building our presence in large, attractive industry segments and using our experience of integrating and growing brands and hotel portfolios," added Maalouf. IHG also announced the completion of its $800m share buyback programme and the payment of $259m of ordinary dividends to shareholders in 2024. It proposed a final dividend of 114.4¢, resulting in a total dividend for the year of 167.6¢ for 2024, up 10 per cent year on year. Furthermore, it launched a new $900m buyback programme, which along with ordinary dividend payments is expected to return over $1.1bn to shareholders in 2025. "We enter 2025 with confidence in further capitalising on our scale, leading positions and the attractive long term demand drivers for our markets, all of which supports the ongoing successful delivery of our growth algorithm," stated Maalouf. This comes after several share buyback schemes following the pandemic. John Moore, senior investment manager at RBC Brewin Dolphin, commented: "IHG has booked a strong set of results. "They reflect the renewed focus and investment in the business, which continues today with the acquisition of Ruby – the company's 20th brand.

Drayton Manor's profits slide for fourth year as theme park hit by wet weather

Drayton Manor has reported a drop in profit for the fourth consecutive year since being saved from administration, with inclement weather continuing to dampen sales. The Staffordshire-based theme park recorded a pre-tax profit of £1.2m for the year ending 30 September 2024, a decrease from the previous year's £2m, as reported by City AM. This follows pre-tax profits of £3.5m and £5.6m in the two years post-rescue. Prior to its collapse into administration in 2020, Drayton Manor had been operated by three generations of the Bryan family since its opening in 1950. The theme park was subsequently acquired by Looping Group, which operates several UK attractions including West Midland Safari Park and Pleasurewood Hills, as well as other European sites. In the three years leading up to its administration, Drayton Manor accumulated a pre-tax loss exceeding £7m. According to recently filed accounts at Companies House, the park's turnover also fell from £29.3m to £28.1m during its latest financial year, having stood at £30.7m in the year ending 30 September 2022. With Merlin Entertainments planning to open a Minecraft-themed park in the UK, and Universal detailing plans for a new UK theme park expected to provide a £50bn boost to the economy, Drayton Manor is set to face increased competition in the coming years. The board of Drayton Manor released a statement acknowledging the difficulties faced by the business: "Challenges such as very high energy prices from the prior year lessened but our customers were still feeling the effect of the high cost of living." "The weather continued to be another challenge to the business with summer 2024 being the coolest since 2015 and any heatwaves were short lived. The summer was largely overcast, wet and cool." Despite a dip in profits, Drayton Manor distributed dividends totalling £1.2 million to its owner. The theme park's turnover decreased slightly from £23 million to £22.3 million over the year, while revenue from its hotel and events also saw a downturn from £6.2 million to £5.8 million.

Ann Summers reports £13.1m loss amid inflation and Google search challenges

Ann Summers has reported a deeper pre-tax loss of £13.1m for the year ending 29 June, 2024, as it faced "significant external pressures" that include the cost-of-living crisis, rising inflation, and Google's safe search restrictions. This comes after a previous loss of £3.8m in the preceding 12 months, as reported by City AM. According to its latest filings with Companies House, the retailer also saw its turnover dip from £104.5m to £93m over the same period. The company invested nearly £7m in the last financial year to drive growth. In terms of regional performance, Ann Summers witnessed UK turnover decline from £100.6m to £89.7m, European turnover fall from £3m to £2.8m, and turnover in the rest of the world drop from £919,882 to £503,231. Despite reducing store numbers from 85 to 80 in the UK, the firm increased its staff count from 1,114 to 1,180. Having last registered a pre-tax profit of £6.6m in the year to June 2021, the business has since accumulated a pre-tax loss of approximately £40m. Tackling issues with Google safe search, a statement from the board read: "The financial year 2023-24 has been a challenging yet transformative period for Ann Summers group." It continued: "Despite facing significant external pressures, we have made strategic decisions to position our business for future growth and resilience." Ann Summers has reported that its business was "notably impacted" by inflation and the cost-of-living crisis, which were "coupled with a tumultuous political landscape affecting consumer confidence and discretionary spending". The company also noted that its online sales "remained stable, despite challenges advertising online due to Google safe search restrictions and Meta blocking issues". Ann Summers highlighted its third-party partnership with Asos as being "one of the standout successes of the year". The firm stated: "Despite the tough trading environment, we have continued to support the strategic growth of the business, investing £6.8m within the period. "During the year we invested heavily in delivering large-scale strategic projects, which launched just after the period ended. "We launched our brand new website Knickerbox which helps overcome our limitations from Google safe search." In addition, significant investments were made in technology, including the implementation of a new product information management platform. This has streamlined operations and enhanced customer experience, while also improving delivery and fulfilment capabilities. Looking ahead, Ann Summers said: "We are committed to continuing our investment in growth and transformation. "We have a clear strategy in place to navigate the current economic challenges and emerge stronger.

Just Eat Takeaway.com sees shares rise as tech firm makes £3.3bn offer

Global technology company Prosus has tabled a £3.3bn bid to take over Just Eat Takeaway.com. The Amsterdam-based private equity firm plans to initiate the offer "as soon as practically possible", which is anticipated to be in the second quarter, with the deal expected to wrap up by year-end. Prosus has proposed €20.30 per share in cash, representing a 63% premium on Just Eat Takeaway.com's closing share price on 21 February, 2025, as reported by City AM. The share price climbed to €19 per share this morning. Just Eat Takeaway.com was born out of a merger between London's Just Eat and Amsterdam-listed Takeaway.com in 2020. Following the merger, Just Eat was delisted from the FTSE 100 in 2021 as it was no longer UK-based. It maintained dual listings in Amsterdam and London until last year when it decided to drop its London listing due to administrative overheads. Fabricio Bloisi, CEO of Prosus and Naspers group, expressed his excitement about the potential acquisition: "We are very excited for Just Eat Takeaway.com to join the Prosus group and the opportunity to create a European tech champion." Prosus has already tasted success with Brazilian iFood, which heavily utilises AI to enhance customer experience and driver support. "The transaction provides an opportunity to couple Prosus' investment expertise, tech and AI capabilities and innovation mindset, with Just Eat Takeaway.com's brand strength and solid fundamentals," Prosus stated. Dick Boer, chair of the supervisory board at Just Eat Takeaway.com, expressed his enthusiasm for the deal, stating: "Just Eat Takeaway.com will benefit from Prosus' significant financial resources to support investment in the business with a long-term investment horizon." He further added, "The supervisory board unanimously supports the offer and is confident this outcome is in the best interest of Just Eat Takeaway.com and all its stakeholders." It's worth noting that Prosus has a diverse portfolio, with minority stakes in various food delivery companies, including Delivery Hero in Berlin, Meituan in China, and Swiggy in India, which recently went public. In a separate announcement, Just Eat Takeaway.com shared its 2024 results, which showed a two per cent increase in gross transaction value (GTV) in constant currency, excluding North America, where GTV declined by two per cent. The company's total revenue for 2024 was £5bn, a one per cent drop from £5.1bn in 2023, attributed to "lower order volumes, driven by weaker market conditions in North America and Southern Europe and Australia". On a more positive note, adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) saw a significant improvement, rising to €460m (£381m) in 2024 from €339m (£281m) in 2023. The UK and Ireland markets drove this growth, primarily due to "improvement in fulfilment cost per order and efficiencies in marketing", according to the company.