Subway partners with Peking duck giant Dadong

Sandwich chain Subway rolled out its Dadong Peking duck collection across more than 1,200 stores nationwide in mid-September. The iconic high-end Chinese delicacy, usually priced at hundreds of yuan per person in fine dining settings, has been brought onto everyday Western-style fast food menus at an accessible price point.

The launch marks the flagship rollout of Subway's New Flavors of China localization strategy. Under the landmark deal, the brand is partnering with premium Chinese culinary brands and master chefs every autumn to launch limited-edition Chinese-inspired sandwiches and complementary products, building seasonal product highlights.

"Localization is a must, not an option, for Subway in China," said Wang Wei, chief marketing officer of Subway China. "Instead of competing on price cuts and cost reductions, we are pursuing a value-for-quality path, using co-branded innovation to break consumers' stereotypes about Western fast food."

For Subway, the partnership represents a brand-building effort to reshape consumer perceptions.

Over the past three years, Subway China's store footprint has expanded from around 500 to over 1,200 locations, with localized product innovation serving as one of its core growth drivers. Previous localized launches include items like Mongolian barbecued roast beef and spring bamboo steak, yet the brand had long lacked a landmark product with national recognition. The tie-up with Dadong, an iconic high-end Chinese dining brand, serves as a strong endorsement for its localization agenda.

For Dadong, the collaboration marks a key trial in making high-end dining more accessible and scenario-diversified.

As a leading premium Peking duck brand long associated with banquets and business dining scenarios with low consumption frequency, Dadong's earlier down-market attempts remained confined to in-restaurant dining.

"High-end should not be defined by high prices and barriers — first and foremost, it is defined by strict quality standards," said Dong Zhenxiang, founder of Dadong.

"This partnership is an experiment in making premium dining accessible to the public. Rather than compromising on quality for lower prices, we are bringing high-quality products to more consumers in a more approachable format."

Through Subway's channel network, the duck products have penetrated high-frequency consumption scenarios such as weekday lunches and commuter meals, extending the brand from "ceremonial dining" to "everyday consumption".

The core competitive edge of this collaboration lies in in-depth joint research and development on the product side. A long-standing pain point for Peking duck is its heavy reliance on fresh offerings.

"Crispy duck skin turning soggy from moisture has been a persistent industry challenge. The joint R&D team optimized duck meat preprocessing, refined the skin-fat structure, selected a balanced mix of duck leg and breast meat, and developed a store-specific oven reheating protocol to preserve the signature crisp texture and juicy meat," Dong said.

Subway's standardized operating system and mature supply chain across its 1,200-plus stores in the country ensure consistent quality across cities.

Amid intensifying price wars in China's fast-food market, where low-price deals and product homogenization have squeezed industry-wide profit margins, Subway has chosen to shift to value competition.

By lifting product value through premium IP co-branding and positioning itself in the mid-range quality fast-food price band, the brand is building a competitive moat through differentiated products — a concrete embodiment of its "value-for-quality" strategy.

The collaboration's potential extends beyond the domestic market. In early September, Dadong Peking duck sandwiches made their debut in New York, signaling a new approach to Chinese cuisine's global expansion.

Dong has previously reflected on the traditional model of Chinese restaurants going global: heavy single-store operations, high costs and difficulties in localization.

"Chinese cuisine can go global in more diverse forms — it can be craftsmanship, recipes or individual products. By leveraging the channel network and consumer recognition of established overseas brands, we can carry Chinese flavors in formats familiar to local consumers," the founder added.