Sandwiches, Subs and Wraps - US - December 2007

Table of Contents

• Scope and Themes
• What you need to know
• Definition
• Resources used for The Consumer sections
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• The public' s hungry for sandwiches, and there' s still room at the table
• Growing fast
• What types of restaurants are we talking about here?
• Influencing which sandwich concepts make it to your menu
• Far beyond old-fashioned sandwich-board advertising
• Who orders these sandwiches, subs and wraps?
• High incomes aren' t necessarily most coveted in this industry, but present opportunity
• What convenience means in the sandwiches, subs and wraps business
• Premium is at a premium
• Looking at sandwich, sub and wrap places as more than just a sandwich
• Follow-through needed with teen girls
• Black, Hispanic, and Asian customers all lead the category
• Market Drivers
• Convenience, the industry' s biggest asset
• Lots of stores is great, but drive-thrus might be nice
  • Figure 1: Number of sandwich, sub and wrap restaurant units operated by the 13 leading chains, 2004-06
• Convenience stores
  • Figure 2: Number of convenience stores, 2001-06
• Serving a health-conscious audience -- and how "healthy" can be a risk
  • Figure 3: Attitudes regarding healthy eating, 2002-07
• Industry risk in "healthy"
• Growth of Mexican flavors for most dining sectors
  • Figure 4: New Mexican cuisine menu introductions, by dining type, Q1 2006-Q3 2007
• Duking it out over day parts
• Significant growth potential
  • Figure 5: U.S. population and projections, by age, 2002-12
• Continually rising gas prices will dampen motivation to dine out
  • Figure 6: Impact of fluctuating gas prices on consumer expenditures, May 2007
• Market Size, Forecast and Trends
• Market size and forecast
• Total market
  • Figure 7: Total U.S. retail sales and forecast of sandwiches, subs and wraps, at current and constant prices, 2004-09
• Standard chains
  • Figure 8: U.S. retail sales and forecast of standard sandwiches, subs, and wraps, at current and constant prices, 2004-09
• Premium chains
  • Figure 9: U.S. retail sales and forecast of premium sandwiches, subs, and wraps, at current and constant prices, 2004-09
• Future trends
• The supermarket' s potential big bite out of the sandwich market
• The influence of diverse ethnic palates
• Driven by a desire for "something different"
  • Figure 10: Culinary-cultural representation of Panera Bread menu, 2007
• Major chains investigate wrapping the market
• Market Segmentation
  • Figure 11: Price range and average price of sandwich items for leading fast casual and QSR chains, Q3 2007
  • Figure 12: Sales of sandwiches, subs and wraps, segmented by price level, 2004 and 2006
• Supply Structure
• Standard chains
  • Figure 13: System-wide sales of standard sandwiches, sub and wrap chains in the U.S., 2004 & 2006
• Unit sales add depth to the story
  • Figure 14: U.S. system-wide units and sales per unit of leading standard sandwiches, sub and wrap chains, 2004 and 2006
  • Figure 15: Average price for sandwichs, subs and wraps in QSR, Q3 2007
• Premium chains
  • Figure 16: System-wide sales of premium sandwiches, sub and wrap chains in the U.S., 2004 & 2006
• Unit sales add depth to the story
  • Figure 17: Store counts of premium sandwiches, sub and wrap, 2004 and 2006
  • Figure 18: Average price for sandwichs, subs and wraps in fast casual, Q3 2007
• Company profiles
• Subway
• Arby' s
• Quiznos Sub
• Blimpie Subs & Salads
• Panera Bread
• Atlanta Bread Company
• Schlotzsky' s Deli
• Au Bon Pain
• Corner Bakery Cafe
• Cosi Inc.
• Einstein Bros. Bagels
• Jason' s Deli
• Potbelly Sandwich Works
• Advertising and Promotion
• Overview
• Promotional tactics
• Subway
• Arby' s
• Panera Bread Co.
• Quiznos
• Blimpie Subs and Sandwiches
• Einstein Noah Restaurant Group
• Television
  • Figure 19: Arby' s television ad, 2007
  • Figure 20: Arby' s television ad (2), 2007
  • Figure 21: Jimmy John' s television ad, 2007
  • Figure 22: Mr. Submarine television ad, 2007
  • Figure 23: Quizno' s television ad, 2007
  • Figure 24: Quizno' s television ad (2), 2007
  • Figure 25: Subway television ad, 2007
  • Figure 26: Subway television ad (2), 2007
  • Figure 27: Subway television ad (3), 2007
• The Consumer -- Who Eats Sandwiches, Subs, and Wraps
• Away from home buyers of sandwiches, subs and wraps
  • Figure 28: Purchase incidence of sandwiches, subs, and wraps by gender, November 2007
  • Figure 29: Purchase incidence of sandwiches, subs, and wraps, by age, November 2007
  • Figure 30: Purchase incidence of sandwiches, subs, and wraps, by income, November 2007
• Away from home buyers of sandwiches, subs and wraps -- by restaurant
  • Figure 31: Where have you purchased a sandwich, sub or wrap made outside of your home in the past 30 days?, November 2007
  • Figure 32: Sandwich, sub or wrap restaurants visited in the past 30 days, by age, November 2007
  • Figure 33: Sandwich, sub or wrap restaurants visited in the past 30 days, by household income, November 2007
• Frequency of visiting sandwich, sub or wrap restaurants
  • Figure 34: Number of visits to sandwich, sub or wrap restaurants in the past 30 days, November 2007
• Which of these are among your favorite place to eat?
  • Figure 35: Sandwich, sub or wrap restaurants visited in the past 30 days that are among your favorites, November 2007
• Other places of sandwich purchases in the past 30 days
  • Figure 36: Other places where sandwiches, subs or wraps were bought in the past 30 days, by age, November 2007
  • Figure 37: Other places where sandwiches, subs or wraps were bought in the past 30 days, by income, November 2007
• Teen incidence of visiting sandwich, sub and wrap chains
  • Figure 38: Teen incidence of visiting sandwich, wrap and sub restaurants in the past 30 days, by gender, age, and race/ethnicity, May 2006-June 2007
• The Consumer -- Attitudes and Preferences
• Importance of sandwich restaurant location and cost
  • Figure 39: Importance of restaurant location and cost, by gender, November 2007
  • Figure 40: Importance of restaurant location and cost, by age, November 2007
  • Figure 41: Importance of restaurant location and cost, by income, November 2007
• Attitudes about gourmet ingredients and presence of premium bakery items
  • Figure 42: Attitudes about gourmet ingredients and presence of premium bakery items, by gender, November 2007
• More than just a sandwich place?
  • Figure 43: Attributes that sandwich buyers would like to see added, November 2007
• Black and Hispanic Consumers
  • Figure 44: Purchase incidence of sandwiches, subs, and wraps, by race/ethnicity, November 2007
  • Figure 45: Sandwich, sub or wrap restaurants visited in the past 30 days, by race/ethnicity, November 2007
  • Figure 46: Other places where sandwiches, subs or wraps were bought in the past 30 days, by race/ethnicity, November 2007
  • Figure 47: Attitudes about gourmet ingredients and presence of premium bakery items, by race/ethnicity, November 2007
  • Figure 48: Attitudes about gourmet ingredients and presence of premium bakery items, by race/ethnicity, November 2007
• Regional Consumer Observations
  • Figure 49: Sandwich, sub or wrap restaurants visited in the past wek, by region, November 2007
  • Figure 50: Sandwich, sub or wrap restaurants visited in the past 30 days, by region, November 2007
• Compared to other regions, individuals living in the Northeast are most likely to:
• Compared to other regions, individuals living in the Midwest are most likely to:
• Compared to other regions, individuals living in the South are most likely to:
• Appendix: Menu Insights
  • Figure 51: Nutritional health claims for sandwiches, subs and wraps at fast casual and QSR, Q3 2007
  • Figure 52: Most popular type of wraps and sandwiches at fast casual and QSR, Q3 2007
• Appendix: Simmons Cohort Analysis
  • Figure 53: Sandwich, wrap and sub restaurant patronage, by key user cohorts, May 2006-June 2007
  • Figure 54: Sandwich, wrap and sub restaurant patronage, by key user cohorts, May 2006-June 2007
• Appendix: Trade Associations