Subway wraps up deal with Atkins

USA Today ^ | Dec. 26, 2003 | Bruce Horovitz

[Nachum]

Subway, the sandwich chain that brought the world the Jared Fogle diet, is about to emerge as the first fast food chain to embrace the Atkins diet.

Subway today will announce plans to begin selling two Atkins-Friendly Wraps at all 16,500 Subway stores nationwide beginning Monday. The wraps are made from special wheat and soy grains that are high in fiber and protein but low in carbohydrates.

Consumers, however, will pay a premium for them - about 50 cents more than Subway's conventional, six-inch subs. Subway sandwich bread has 17 net carbs compared with 5 net carbs in the in the Atkins wrap, alone.

Behind all this: a nation of overweight consumers who want to eat hearty but lose weight at the same time. The popularity of the Atkins Diet appears to be near its zenith - though potentially threatened by new Mad Cow concerns in the U.S.

Nearly one in four Americans have at least tried the Atkins diet that encourages consumption of meats, vegetables and fruits but discourages carbohydrate-laden breads, pastas and cereals.

"Next, we'll have Slim Fast shakes at Dairy Queen," jokes Janet Lowder, president of Restaurant Management Services, a consulting firm. "Any restaurant that doesn't offer alternatives to high fat foods isn't paying attention."

For Subway, the deal is a strategic move to protect the Subway franchise of better-for-you fast food.

Not only has the popularity of the low fat, low calorie Jared Fogle diet has begun to fade, but same-store sales at Subway have dipped about 2% the past year while rivals such as McDonald's and Wendy's are enjoying double-digit sales gains.

For Atkins, the move is a major public relations coup as the company continues to reach out to strike licensing deals with some of the most familiar names in food. A partnership with T.G.I. Friday's was announced earlier this month. And several others deals are said to be under negotiation.

Subway also has plans to introduce in April an entrée salad line with three Atkins-Friendly salad dressings.

"We're making the changes to stay on top of consumer trends," says Fred DeLuca, president and founder of Subway. "We have to make sure that people can come to Subway and find the food that meets their dietary needs."

Subway approached Atkins with the proposal several months ago. Under the terms of the marketing partnership, Subway will pay Atkins an undisclosed fee based on total sales of the new products.

DeLuca says he believes the Atkins tie-in could boost Subway sales up to 10% over the next year.

Early ads supporting the new Atkins tie-in will not feature Fogle, who lost 245 pounds on a strict diet of Subway sandwiches and diet soda. But yet-to-be-created ads will feature him, DeLuca says.

Executives at Atkins say the tie-in is a boon for Atkins dieters. "We can now tell our customers that they can go out and get Atkins approved meals at Subway," says Matthew Wiant, chief marketing officer at Atkins Nutritionals.

But not all nutritionists are big Atkins fans.

"It may be smart marketing," says Holly Piturro, a nutrition therapist from Denver, Colo., "but I don't agree that it's okay to eat so many protein-excessive products."

[dts32041]

"It may be smart marketing," says Holly Piturro, a nutrition therapist from Denver, Colo., "but I don't agree that it's okay to eat so many protein-excessive products."

PETA has been heard from.

[tubebender]

As Jared would say...Blimpy...it's a beautiful thing. Or was that Rush...

[NYC GOP Chick]

Why do you say that she's with PETA?

[RicocheT]

The Subway chain is on the money for reading the consumer. They offer a good variety of subs, fast service, good prices and now, the Atkins eater is served.

Subway is in the right spot for the lunch dollar and will do OK in 2004. MacDonald's and BK should watch their backs.

[tubebender]

"Next, we'll have Slim Fast shakes at Dairy Queen," jokes Janet Lowder, president of Restaurant Management Services, a consulting firm. "Any restaurant that doesn't offer alternatives to high fat foods isn't paying attention.

And what does that statement have to do with Atkins Mzzzz Lowder...

[Prodigal Son]

Fogle, who lost 245 pounds on a strict diet of Subway sandwiches and diet soda.

I guess a diet could be worse than that.

[Myrddin]

The best offering at Subway is a steak salad with some olives and onions over the top. Perfectly fine for "induction" phase. Cheap and tasty as well. I'm allergic to wheat, so avoiding the bread offerings is effortless. The bread does smell good.

[Hawkeye's Girl]

"It may be smart marketing," says Holly Piturro, a nutrition therapist from Denver, Colo., "but I don't agree that it's okay to eat so many protein-excessive products."

Then don't.

Sheesh, more options in fast food benefits everyone.

[Myrddin]

I hit MacDonald's and Jack-in-the-Box for a double burger, no bun. At Jack's, ask for two large meat patties, two slices of American cheese and one slice of Swiss cheese at Jack-in-the-Box. It's an Ultimate Cheeseburger without the bun and toppings. Out the door for $2.23 in Pocatello. A small ice tea and you have a cheap Atkins meal. The burgers at MacDonald's tend to be juicier, but they are less accomodating about ditching the bread.

[Gabz]

I'm one of those lucky ones that others love to hate - I can eat anything and not worry about it - but I love Subway.

The sandwiches are good, fast, fresh, and cheap!!!

[Gabz]

OOOOOHHHHHH - memories - I do miss Blimpies.

[Gabz]

Sheesh, more options in fast food benefits everyone.

More options in nearly everything benefits everyone - but that goes against the doctrine of the food-gnatzies that there MUST be a "level playing field"

[1FASTGLOCK45]

I was at mcdonalds the other day and they gave me a double quarter pounder with a smaller than normal bun. I think they are trying to keep up. I was upset my bun was so small. i go to mcdonalds on occasion to get junk food, not be healthy.

[radiohead]

...but I don't agree that it's okay to eat so many protein-excessive products."

They miss the point. It's not the protein (how much protein can go inside one of those subs anyway?), it's the carbs. As a diabetic, I simply can't eat the amount of carbs in a sub w/o throwing my system out of whack and having to take a ton of insulin. I end up getting the insides of a sub as a salad. Every now and then, tho, I'd like to get a freakin' sandwich like the rest of America. Assuming the whole wheat/soy bread doesn't taste like garbage, I'll be happy to eat the 'Atkins' sub.

[July 4th]

I agree that Atkins works for many. I tend to like eating meats more than breads and grains, so I've essentially lived on a very "light" Atkins diet for as long as I can remember. But the idea that bread in itself is some kind of evil food is really getting to me.

The problem is that all too often people change eating patterns instead of doing what should be done first - more exercise. Note that the US, despite our bountiful fields of grain, consumes some of the lowest amounts of bread in the Western world. I think we're at something like 1/3 of what the Europeans consume on a yearly basis. It's not the bread in itself that's doing it. It's people not taking a half-hour each day to work off some calories and get their heart rates up.

[SuziQ]

Good for Subway. They're reading the tea-leaves of the American consumer, and offering alternatives! It's what Capitalism is all about!

[SuziQ]

Assuming the whole wheat/soy bread doesn't taste like garbage, I'll be happy to eat the 'Atkins' sub.<

I bought a box of Atkins brand cereal the other day, and when I opened the box, the smell of it made me gag! It was an odd chemical smell! I tried to eat it, and I just couldn't; ended up throwing the whole thing away. I've used some of the marinades, and they are okay, but I'll just continue to use the stuff I've been using all along! There are not enough carbs in those sauces to make a difference!

[Triple Word Score]

The salad option at Subway has been workable for Atkins and Carb Addicts all along. Save the crackers for another need, get a diet soda. There are many ways to get a no-carb or low-carb lunch at Subway. I suppose those who don't feel fed if they don't have a sandwich will be pleased by this new set of options.

The rest of the fast food industry will finally follow, and those of us who have finally found a way to control a previously uncontrollable appetite will be healthier for it. Some people are made to survive famine by making the most of every possible calorie--but plenty kills us slowly.

[jennyp]

As Jared would say...Blimpy...it's a beautiful thing. Or was that Rush...

I want a Tubbyyyy's Submarine
Tubbyyyy's Submarine
Ain't no substitute,
just no substitute
for Tubbyyyy's Submarine!