June 7, 2006

Sandwich Chains Leading the Top 500 Pack

Technomic Information Services reported sandwich chains represented the fastest growing and largest segment among the top 500 chains in 2005, outpacing burger restaurants by four times, according to Darren Tristano, managing director.

The roughly 10-percent sales growth for sandwich chains, compared to about 4.2 percent for burger chains, happened as more and more consumers opt for fresh sandwiches due to their portability, lower prices, higher-quality flavor and fresher ingredients, Tristano said. Sandwich chains are also more accessible to consumers; for example, Subway has more locations than McDonald’s. 

There was also considerable growth among bakery-café concepts, such as Panera Bread. Bakery-cafes draw increasing numbers of customers in for breakfast by offering specialty coffee beverages, and they also more effectively service the lunch crowd by offering sandwiches, salads and soups, according to Tristano. Many of the bakeries also feature a more upscale, comfortable environment with couches and fireplaces, as well as opportunities for catering and off-premise sales, he said.

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