Rising submarine: Revenue has grown due to favourable health consciousness and lifestyle trends

The Sandwich Shops industry has sustained steady growth over the past five years, largely supported by robust demand for healthy meal options and fresh ingredients. Subway dominates the industry, and is expected to account for 67.7% of the market in 2017-18. Subway has been able to differentiate itself in the wider food-services sector, and has expanded its retail store network over the past five years. Heightened competition among different food establishments, such as cafes, restaurants and fast-food chains, means that sandwich stores need a concrete point of differentiation. Industry revenue is expected to grow at an annualised 3.0% over the five years through 2017-18, to $2.1 billion. However, revenue is projected to only increase by 0.3%...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
3.0%
Forecast Growth 18-23
Profit
Employment
13,364
Businesses
1,965
Market Share of Companies

Industry Threats & Opportunities

  • Busier lifestyles and the desire for convenience have supported demand for industry products
  • Rising health consciousness has supported strong demand for fresh and healthy sandwiches
  • Fast-food operators are anticipated to increase external competition pressures for the industry
  • Industry Report - Starting a New Business Chapter

    The industry is characterised by low barriers to entry, with the level increasing over the past five years. Operators are able to enter the industry at the lower end with relatively low start-up costs, as fragmentation enables operators to gain sustainable market share.Sandwich shop operators require a minimal level of capital investment in order to establish a new location. The majority of investment is involved in fitting out a store, although the level of technology involved in sandwich making is much less than for other fast-food industries. As a result, cost does not pose a significant barrier to entry.However, barriers in the industry are increasing, due to the high level of competition and the market power of the largest industry player, Subway. New...purchase to read more.

    Additional Insights for the Sandwich Shops Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Sandwich Shops Industry are

  • Access to multiskilled and flexible workforce
  • Ability to franchise operations
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as Average weekly hours worked and Consumer sentiment index in the Sandwich Shops industry impact industry performance..

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    What's in this report

    What is the Sandwich Shops Industry?

    The industry includes establishments that primarily sell made-to-order or pre-made sandwiches prepared instore for on-premises and takeaway consumption. The industry excludes cafes, coffee shops and restaurants.

    Industry Products
  • Submarine sandwiches
  • Wraps
  • Traditional sandwiches
  • Beverages
  • Other food
  • Industry Activities
  • Retailing made-to-order sandwiches
  • Retailing pre-packed sandwiches prepared instore
  • Retailing wraps
  • Retailing drinks and beverages
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Average weekly hours worked
  • Consumer sentiment index
  • Health consciousness
  • Real household disposable income

  • Current Performance
  • Industry structure
  • Wages and establishments
  • Health consciousness
  • Time-poor consumers
  • Chart: Revenue Growth

  • Industry Outlook
  • Concentration
  • Intensifying competition
  • Food vans and pop-up stores
  • Industry structure
  • Table: Sandwich Shops Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Sandwich Shops Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Fish and Seafood Wholesaling
  • Fruit and Vegetable Wholesaling
  • General Line Grocery Wholesaling
  • Meat, Poultry and Smallgoods Wholesaling
  • Soft Drink and Pre-Packaged Food Wholesaling

  • Products & Services
  • Submarine sandwiches
  • Beverages
  • Wraps
  • Traditional sandwiches
  • Other food
  • Chart: Sandwich Shops Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged 15 to 34 years
  • People aged 35 to 54 years
  • People aged 55 years and over
  • Chart: Major Market Segmentation for the Sandwich Shops Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Sandwich Shops

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Sandwich Shops Industry

  • Industry Globalization
    Subway Systems Australia Pty Limited,
  • Table: Subway Systems Australia Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Sandwich Shops Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Sandwich Shops Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Foodie
  • A person who has a refined interest in food.
  • Point Of Sale (Pos)
  • Computerised systems used in retail sales to complete the transaction.
  • Pop-Up
  • Pop-up, or flash retailing, refers to the practice of opening short-term sales spaces.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Sandwich Shops market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Sandwich Shops:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Sandwich Shops market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Sandwich Shops, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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