Subway India changes menu that observers believed to be more about cost-cutting than just a matter of taste, Subway sandwiches in India would no longer be available with the option of a free cheese slice. With almost 800 locations, the American restaurant brand Subway is one of the biggest in India. The cheese slice in most sandwiches is now an additional 30 rupees ($0.40), although a free “cheezy” sauce is offered in its place.
Rising Inflation Concerns
Indian franchises of international fast food businesses are under pressure to reduce costs while maintaining consumer satisfaction due to rising pricing for commodities, notably dairy products. In India, where its franchisee has openly expressed worries over a 40% increase in the price of cheese during the financial year that ended in March, Domino’s offer pricing for their least expensive pizza is only 60 U.S. cents.
Following a 450% price increase to record highs, many Subway and McDonald’s locations in India recently removed tomatoes from their menus due to quality concerns. To help with the scarcity, India has resorted to importing tomatoes from Nepal.
The Everstone Group’s Culinary Brands, which oversees the supply chain for all 800 locations and is the master franchisee for about 200 of them, claimed that the cheese sauce, which is currently provided free at Subway India, was “developed for qualitative reasons alone”. There is no doubt that not everyone likes the qualitative change.
Customers’ Response
One disgruntled consumer, Sumit Arora, posted on X, the social media website that supplanted Twitter, that Subway has “replaced the cheese slice with liquid cheese blend… You just lost a loyal customer.” The new cheese sauce is 400 rupees a kilogramme, according to a Subway India store manager in New Delhi who spoke to Reuters. According to market rates, a kilogramme of cheese slices normally costs roughly 700 rupees.
Mayur Hola, the marketing director for Culinary Brands, claimed that a cheese slice “can be added on at a small cost.” Ingredient costs are not something we discuss; this is merely an improvement to our subs. In response to a question regarding the Subway India decision, Karan Taurani, a consumer discretionary analyst at India’s Elara Capital, claimed that rising cheese, grain, and vegetable prices have forced eateries to develop “innovative” business plans.
Instead of implementing a general price increase, he continued, “it is a way of applying inflationary pressure to the customer.” In India, a Subway sandwich runs between 200 and 300 rupees ($2.4 and $3.6). If a client adds the cheese slice, which used to be free, the price will increase by up to 15%. Requests for comment from Subway India spokespersons went unanswered. With pressure from rising food costs, India’s central bank this week increased its projection for inflation for the current fiscal year to 5.4%.
