Dive Brief:
- Popular news and culture website Thrillist recently declared that Publix has the best sandwiches in the country. The “Pub Subs,” as they're affectionately known, have a Facebook fan page and a song on YouTube (which has 22,550 views).
- Although the sandwich ingredients are simple — house or Boar’s Head deli meat, cheese, bread and vegetables from the grocery aisle — they're consistently fresh and customizable, and have created many loyal customers for the southeastern chain, Thrillist says.
- Publix started its sub sandwich program in the '80s and expanded it in the '90s as restaurant competitors like Subway and Blimpie grew, according to Thrillist.
Dive Insight:
Consumers may have eaten a Grinder, a hero, a wedge or maybe a hoagie. They've probably had a sub, too, but if they haven’t experienced a “Pub Sub,” they haven’t really lived. At least, that’s the sentiment of Floridians who maintain a cult-like following for Publix’s selection of hot and cold sandwiches. Other large grocers have deli departments, while sub-focused restaurants like Jersey Mike’s and Jimmy John’s maintain a strong presence in the state. But, according to Publix fans, it’s not the same, and it’s not nearly as good.
Because thorough research is important at Food Dive, we did our own investigation at a North Carolina Publix to see if the Pub Sub was really worth the acclaim.
The smell of freshly baked bread reaches customers entering the front door of the retailer. After navigating past the produce and bakery displays, the deli station awaits. There, Publix offers traditional sandwiches and also allows customers to tinker with sauces and toppings to make their own combination. Sandwiches are served cold or toasted. Our research indicates that the chewy bread, abundant fillings and tasty combinations do indeed lead one to believe the hype.
Aside from being tasty, Publix's subs are delivering sales in a very profitable segment of the store. Deli sales currently account for just under a fifth of total store sales right now, according to Nielsen Fresh, and are one of the major profit centers for retailers right now. Prepared foods lead the way in this department, with 59% of sales, and are growing rapidly as shoppers increasingly look to grocers for meal options.
As good as Pub Subs may be, will they create the same type of fan following outside Florida? The 87-year-old chain has grown in the supportive Sunshine state, where it dominates with 40% of Florida’s grocery market share. But Publix been expanding into new territories in recent years, including the very competitive Mid-Atlantic region. In these areas, not only is Publix the unknown contender, but it also faces a crowded market that includes Walmart and regional favorites like Kroger, not to mention smaller grocery chains offering prepared foods, as well as convenience stores like Sheetz and Wawa known for offering a greater variety of grab and go options.
Wegman’s, the high-performing grocer based in Rochester, NY, is making its way south, just as Publix is heading north. Both stores share the title of America's favorite grocery store, according to a recent Market Force study, and began squaring off for the first time in Richmond, Virginia last year.
But maybe transplanted Floridians will be the brand ambassadors for Publix. As the love fest continues as the retailer moves north, Publix can use its sandwiches to differentiate itself from the competition, and northerners can create their own positive associations with the “Pub Sub.”