Firehouse Subs saw domestic same-store sales grow 24.8 percent in the Latest Year, driven largely by the opening of a net 128 units, giving it a total of 840 locations — 18 percent more than the Preceding Year.
The LSR/Sandwich chain was founded by two firefighter brothers and continues to attract loyal customers with its charity programs centered on firefighters and other first responders. Its Firehouse Subs Public Safety Foundation, established in 2005, raises money by selling signature five-gallon pickle buckets — used buckets sell for $2 apiece — by placing coin canisters at restaurants’ points of sale and by asking guests to round up their bills. The money raised goes to fire, police and emergency departments to buy life-saving equipment. The foundation has raised more than $10 million to date.
Firehouse Subs launched its first national advertising campaign in 2014, which focused on the chain’s roots. It also refined its digital media messaging, improving engagement with its customers. Additionally, the company added a fourth regional marketing manager to its team in 2014.
Firehouse Subs made a healthful menu play in 2014 with the addition of its Hearty & Flavorful, Under 500 Calories menu, which management called the chain’s most significant menu change in its 21-year history. The six reduced-calorie sandwiches have the same amount of protein as the chain’s regular subs, but on smaller rolls, and with light mayonnaise and cheese.
Keys to Growth:
Data collection and analysis. Don Fox, CEO of parent Firehouse of America LLC, aims to keep Firehouse Subs best in class in three areas: taste, courtesy and community support. He relies on Technomic brand metrics to measure the chain’s performance against competitors, and uses other measurement data to drill down to the unit level. He also analyzes location-based social media activity to get a better understanding of what works.
“We are able to evaluate the activity of a particular customer or device and link it back to a device that we know has clicked on a digital ad,” Fox said.
Brand differentiation. Firehouse Subs plays heavily into its authentic heritage as a restaurant founded by firefighters. It also promotes the fact that its meat and cheese is steamed to release their flavors — something that might change as it moves forward with a test of cold heroes, which began in the spring. Restaurants also have distinctive design elements, such as a hot-sauce bar.
Franchising strategy. Firehouse of America has area representatives — a franchisee who recruits other franchisees — in all 48 contiguous states. Fox said the only obstacle to expansion now is finding the right real estate. He expects to hit what he sees as the chain’s optimal expansion rate of 200-250 locations in the next several years.
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