Subway to add Keurig brewers to all US locations

The sandwich chain loves the single-serve coffee machines, saying they improve efficiency.

By InvestorPlace Jun 11, 2014 1:56PM

A Subway shop in New York City (© Ben Hider/Getty Images)By Christopher Freeburn


Keurig Green Mountain (GMCR) is partnering with the House That Jared Built expand the presence of its Keurig single-serve coffee and tea brewers.


Privately held Subway restaurants have already installed Keurig brewers at more than half of its locations in North America.


Now, Green Mountain and Subway plan to expand their use to all Subway locations in the U.S. and Canada.


According to GMCR, the Keurig brewers will help Subway franchise owners streamline coffee-making, Restaurant News notes.


In a statement, Subway's beverage manager, David Zambory, said Subway had begun promoting Keurig brewers to franchisees in 2013.


"We've heard overwhelmingly positive feedback about Keurig's ability to deliver variety, quality and freshness on demand," he noted.


Subway has at least 25,500 locations in the U.S.


Keurig Green Mountain's stock hardly budged in response to the news, however, up just fractionally by midday Wednesday. Not that investors are worried -- shares remain up 53 percent for the year-to-date.


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Tags: GMCR
2Comments
Jun 11, 2014 2:47PM
avatar

Why would I get coffee from Subway when I can brew the same thing at home for less with the same machine?

 

This has got to be the dumbest business decision I have ever seen.  I guess the CEO wasn't wearing his helmet when he fell off the back of the bus.

Jun 11, 2014 7:26PM
avatar
kcups cost around 50c a piece. I wonder how much they will sell it for? $3? seems like a decent markup from an already marked up product
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