The United States based global fast food chain is attempting to stage a turnaround in its fortunes and in this plan it has now involved itself in a partnership with Beyond Meat, one which the fast food company hopes would be able to revive its business fortunes.

A Beyond Meatball Marinara sub would be the first item from the stable of the maker of plant-based meat products that would be tested out by the sandwich chain through its partnering with Beyond. Starting this September, the test phase would see this sandwich, which will be available for a limited period, being made available to customers in 685 locations of the company in the US and Canada.

During the second quarter of the current year, almost half of the net sales of Beyond – amounting to $33.1 million, was generated from its sales to restaurants. Partnerships with chains like Dunkin’, Del Taco and Tim Hortons have entered into partnership with the El Segundo, California-based company. The demand of Beyond’s products is driven by greater demand of alternative meat products form customers seeking to reduce animal meat in their diet.

According to a forecast of Euromonitor, by 2023, the total value of the market for meat substitutes in the US will grow to $2.5 billion. And data from Nielsen suggested that about 98 per cent of buyers of meat substitutes comprises of flexitarians — who are defined as omnivores who are looking to reduce their meat intake.

Since the shares of Beyond was first put up for the public in May this year, there has been an astronomical rise in its share price and is currently trading at 544 per cent giving the company a market valuation of $9.8 billion. Analysts say that this reflects the enthusiasm among the investors about the potential for growth of the vegan meat alternatives as well as the bright future of Beyond and the opportunities that it faces. The company is however now seeking to launch a secondary stock offering, the announcement of which saw a drop in its share price last week.

Subway’s comeback strategy has also focused on forging partnerships. Working agreements with Halo Top for its first-ever milkshake and King’s Hawaiian for its bread have been struck and announced by Subway in the last six weeks. The company is also rolling out delivery across the US and remodeling 10,500 US stores.

There has been massive expansion for the privately held Subway over the last many years. Success with its $5 footlong was seen by the sandwich chain during the 2008 financial crisis. But newer Subway restaurants began to steal sales from nearby locations. Additionally, seemingly healthier fare was being offered to customers by rivals like Chipotle Mexican Grill and Potbelly which was turning out to be appealing. Moreover, the signature foot-long sandwich deal was made rendered unprofitable because of rising commodity costs./ 14,000 US locations of McDonald’s.

(Adapted from CNBC.com)

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