Milling & Baking News - May 2, 2023 - 12

TUES | 05 02 202 3
Menu innovation, modernization
drive Subway sales growth
MIAMI - Subway recently turned in its
ninth consecutive quarter of positive
sales growth, driven by its continued
focus on menu innovation, modernization
of restaurants and improvements to the
overall guest experience.
The restaurant chain's global samestore
sales increased 12.1% in the first
quarter of fiscal 2023. Digital sales rose
11.4%.
In North America, same-store sales
increased 11.7% in the first quarter, with
the chain's top 75% of locations posting a
17.9% increase and the top 50% of locations
up 24.4%. Digital sales, meanwhile, surged
21.2% in the quarter.
" Our continued impressive performance
demonstrates that our efforts to
build a better Subway and win back the
hearts and minds of sandwich lovers
around the globe is working, " said John
Chidsey, chief executive officer of Subway.
" With strong sales momentum across
our restaurants and a refreshed focus on
strategic brand growth, there has never
been a more exciting time to be part of the
Subway brand. "
Subway pointed to digital sales as a key
Utz Brands to close Alabama
snacks manufacturing facility
HANOVER, PA. - Utz Brands, Inc. will
cease operations at its manufacturing
facility in Birmingham, Ala., on
or around July 3, a decision the
company said reflects its " dedication
to network optimization
and cost containment. "
The plant makes snacks under
the Golden Flake brand.
In an April 24 filing with the
Securities and Exchange Commission,
Utz said the facility closing will cost the
company approximately $3 million to $5
million in pre-tax cash charges in the 2023
fiscal year. The charges include
$1.5 million in severance costs
and $1.5 million to $3.5 million
in closing and transfer of
production costs. Utz Brands
also said it expects to incur
non-cash charges of approximately
$8.5 million to $11 million
in asset impairments, although the
actual amounts may change due to timing
Krispy Kreme comfortable with
omnichannel distribution model
CHARLOTTE, NC. - In the last six years,
Krispy Kreme, Inc. has opened 400 donut
producing facilities in 31 countries to
deliver fresh donuts to 12,000 locations.
Michael J. Tattersfield, president and chief
executive officer of Krispy Kreme, said
the biggest challenge when it comes to
working with other businesses to sell its
products is " access. "
" If you only have 400 producing donut
shops and trying to get to customers,
it's about getting access to them, so this
12
MILLING & BAKING NEWS
logistics program, primarily in grocery
and convenience shops, when you really
take the flow of the 400 producing shops
and get to customers where they are, " Mr.
Tattersfield told Jon Fortt during an April
14 appearance on CNBC's " Closing Bell:
Overtime. " " That's been the biggest transformation
of the model, and it's really,
when you think about it, we're a dozens
business. We really maximize the gifting
and opportunities there, and it really
does help when we bring in world class
component of its success in recent years.
Since the start of 2019, global digital sales
have more than quadrupled, Subway said.
In the United States, the restaurant chain's
efforts to incorporate digital promotions
have led to a sharp bump in the number of
customers using the Subway app, which
the company said has helped the brand
maintain a strong value proposition and
increase profitability for many franchisees.
MBN
and local law requirements among other
factors. Even then, the company may
continue to incur other charges or cash
expenditures from the closing and other
" unanticipated events that may occur. "
Utz Brands said all products manufactured
at the facility will continue to be
produced at other company manufacturing
facilities while approximately 100 of
the 275 employees who work at the facility
will be transferred to the company's Birmingham-based
distribution center.
The Birmingham plant was part of Utz's
$146 million acquisition of Golden Enterprises
in 2016. The Golden Flake brand
includes potato chips, pork skins, popcorn
and cheese puffs. MBN
merchant ideas ... and just really keep the
business very vibrant. "
Mr. Tattersfield went on to explain that
Krispy Kreme is comfortable with changing
consumer habits since it spent the
last six or seven years transforming this
model. He also said the company built 10 to
20 theater production shops called hubs,
which start production on " Day 1. "
" Really this omnichannel model is what
we've been shifting the business to, " Mr.
Tattersfield said. " And it's really about
getting fresh donuts as a donut company
to where customers are. "
He told co-anchor Morgan Brennan,
" Our goal is to get to about 75,000 points of
access over a long term. " MBN
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Milling & Baking News - May 2, 2023

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