Why a huge change could hit Subway

Sandwich chain Subway says it may have to consider how their food is delivered if the supply crisis worsens in Australia.

Sandwich chain Subway says it will consider food deliveries by planes rather than trucks as a “last resort” if the supply crisis worsens.

The fast-food chain, which has more than 1220 stores in Australia, says the move would be considered as a “last resort”.

“It’s a contingency,” Subway acting country director Scott Buckman said on Thursday.

“We’re confident with what we’re doing in relation to work with our suppliers.

“Airfreight would be only part of our contingency planning if we got ourselves to a situation where we need to move stock across regions.”

Mr Buckman said it was not the preferred option, given the costs involved.

“It’s not something we ultimately would like to do. We’re very focused on our franchisees and making sure that we keep cost changes to a minimum.”

Like many businesses, the company has had staff with Covid or deemed close contacts in quarantine, placing franchisees under pressure and ultimately leading some stores to reduce trading hours or temporarily shut.

Mr Buckman said Subway was working closely with suppliers and partners to be flexible and respond to disruptions as they arose to keep stores open.

He said the biggest concern was the “unknown factor”.

“There’s issues in relation to staff and that affects not just us but the suppliers that are delivering to us,” Mr Buckman said.

“That’s a bit of an unknown still at this time and how long that will go for or last for is a little bit of an unknown.

“We’re monitoring our orders and our stock allocations really closely and working to make sure our stocks spread evenly across our region.

“We’re fairly confident we’ve got it mostly covered and that we’re going to be able to continue to deliver to our restaurants and ultimately deliver to our customers.”

Originally published as Sandwich chain Subway will make a ‘last resort’ decision about their food if supply crisis worsens

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