Where Is This Sandwich From? Challenging Subway's Dominance
Hot Sandwich 'Banh Mi Sandwich' Made In-Store Gains Buzz
Bakery Sales Share Jumps from 5% to Over 10%
[Asia Economy Reporter Lim Hye-seon] Lotte GRS’s coffee specialty store Angel-in-us is shining with its ‘reverse thinking’ strategy. The semi-prepared food hot sandwich ‘Banh Mi’ is selling like hotcakes, challenging the dominance of the sandwich specialty store ‘Subway.’ Along with this, sales of espresso menu items are also increasing.
Vietnamese ‘Banh Mi’ Sales Surpass 1.5 Million
According to Lotte GRS on the 25th, the cumulative sales of Banh Mi, launched in April last year, have exceeded 1.5 million units. On average, more than 400,000 units are sold every quarter. In February alone, 200,000 units were sold, setting a new record for sales. In April as well, sales approached the highest figures with over 180,000 units sold. Due to the popularity of Banh Mi sandwiches, the sales proportion of Angel-in-us bakery products jumped from the 5% range to the 10% range.
Banh Mi, which is prepared directly in stores, is regarded as a ‘meal.’ While most competitors refrigerate bakery menu items and serve finished products heated in ovens, Angel-in-us introduced hot sandwiches prepared directly in stores. Behind the success of Banh Mi was a meticulous product development process. Angel-in-us planned product development to attract customers to stores in response to changes in customer lifestyles such as ongoing difficulties in overseas travel due to COVID-19, increased demand for remote work and delivery. Angel-in-us interpreted the familiar Vietnamese Banh Mi sandwich in a Korean style and introduced five varieties: Egg Mayo, Original Bulgogi, Ham & Egg, Chicken & Cheese, and BBQ Pork. The five Banh Mi sandwich varieties sold over 200,000 units within a month of launch through word of mouth.
Angel-in-us continuously developed menus through customer order analysis. In October of the same year, they replaced the relatively low-selling Chicken & Cheese and BBQ Pork menus with new items, Flower Meat Creamy and Smoked Bacon Egg. After the product renewal, the Flower Meat Creamy and Smoked Bacon Egg products recorded sales more than twice the monthly average sales of discontinued menus.
Coffee Sales Increase Along with Banh Mi Popularity
As bakery sales increased, the core coffee sales also grew. In March last year, ahead of the Banh Mi sandwich launch, to improve coffee taste and bean quality, the weight of roasting beans supplied to stores was reduced from 2kg to 1kg. This was a measure to reduce oxidation of opened beans and minimize loss of coffee aroma. Additionally, coffee is made using fresh green beans harvested within one year and beans with a one-day shelf life. To promote this, Angel-in-us has been steadily conducting a ‘Fresh Campaign.’ Thanks to these campaigns and the continuous renewal and new product launches of Banh Mi sandwiches, sales of espresso-based beverages (Americano, Latte, Cappuccino) have increased. Since February this year, Americano sales have increased by 20% compared to the previous year.
A Lotte GRS official said, “Angel-in-us plans to continue strengthening brand competitiveness and differentiation strategies through the semi-prepared food ‘hot sandwich’ menu Banh Mi, breaking away from the cold sandwich operation strategies of coffee specialty stores. We will continue to grow as a brand that customers seek through continuous development of sandwich bakery products.”
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