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Even the casual observer must have noticed that the Subway restaurant chain has made several changes in recent years.  Some of the changes incorporated include adding slicers in the store locations, adding new menu items, and even improving marketing strategies.

Mike Martindale
Mike Martindale

So it shouldn't be any surprise that this week Subway corporate announced a new, 10-year deal with PepsiCo, making the switch from serving Coca-Cola products over to serving Pepsi products.

For those of us loyal to Coca-Cola, this doesn't come as great news.  But as a huge Subway fan, it isn't a deal-breaker.  Although I prefer Coke Zero, having to drink Pepsi Zero won't stop me from my favorite foot-long.

Mike Martindale
Mike Martindale

PepsiCo's stable of beverages include Pepsi, Pepsi Zero Sugar, Mountain Dew, Starry, Tropicana, Lipton, Aquafina and Gatorade. 

According to a recent article in RestaurantBusinessonline:

Doug Fry, president of Subway North America, called the deal “a win-win for everyone,” saying that “it brings a delicious suite of beverage and snack choices to our guests, driving additional consideration of these menu items, while also providing cost-effective, streamlined solutions to our franchisees.” 

For Subway and its operators, the efficiency question matters because keeping costs down can help franchisees improve profitability, which is important for a chain that has continued to cull restaurants domestically. 

Subway has closed about 7,000 locations in the U.S. since 2015. 


Why Switch from Coke to Pepsi?

Subway already offers chips and snacks from Frito-Lay, which is a division of PepsiCo, so the move certainly makes sense from a business standpoint.  With Subway switching to Pepsi beverages,this would bring both the beverage and snack portfolios under one provider.

US Subway locations will begin selling Pepsi beverage products beginning January 1st, 2025, with the new deal being rolled out over several months.  So if you love a Coke or Coke Zero with your sandwich, better enjoy it now.

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