Penn Station Stands Out Through a Commitment to Quality

Food represents the majority of daily operating costs for virtually every restaurant, so it makes sense that some brands would look to food when making budget reductions. Penn Station East Coast Subs has found another way. The grilled-sandwich brand has been able to keep food quality a top priority while reducing costs for franchisees by simplifying operations and eliminating waste in all other aspects of their business.

Greg Goddard, Penn Station’s Director of Development and Franchising, says the brand’s commitment to high-quality food has paid off.

“By establishing Penn Station as the high-quality meal option in our space, we’ve secured a loyal and enthusiastic customer base,” Goddard said. “So even when customers are tightening their belts, we are the go-to choice when they decide to eat out."

To maintain control over the quality of their ingredients, Penn Station negotiates all of their vendor contracts in-house, allowing them to choose individual products from each of the brand’s suppliers. Goddard said, “We pick exactly which potatoes we want for our fresh-cut fries, which steak we want for our cheesesteak subs, which lemons we want for our lemonade. We sample every product and we build our menus with them. That’s how we determine which products to buy. It’s never about how many extra cents per pound we can save is. Quality is always the deciding factor.”

“Our menu is streamlined to reduce overhead,” said Penn Station President Craig Dunaway. “We offer simple, appealing menu items, almost all of which share ingredients with other menu items. We use one type of bread, one cut of chicken, etc. There is very little food waste, and inventory is restocked quickly and inexpensively, and because we negotiate all of our supplier contracts, store owners can focus on staff and customers instead of shopping around for better suppliers.”

According to Goddard, Penn Station’s commitment to quality is a function of the brand’s overall business model, which prioritizes consumer satisfaction and protects the bottom line by increasing sales rather than reducing costs.

“At our core, we are focused on making Penn Station appealing to consumers,” Goddard said. “That means prioritizing the basics: cleanliness, quality, and customer service. If we can nail those elements, then we are going to keep our customers happy, and they are going to keep coming back. No matter what’s going on in the industry, whether the economy is good or bad, there is always going to be a larger share of the market for a restaurant that serves high-quality food.  Because our systems and tools allow us to be more efficient to protect the bottom-line, we can still offer a very high-quality product without sacrificing the P&L”.

That strategy has made Penn Station durable in an ever-changing economy, attracting an increasing number of prospective franchisees.

“Our concept has resonated with franchisees every bit as much as it has resonated with customers,” Goddard said. “It’s a simple, appealing menu with generous portions of high-quality produce and proteins. That’s something that people on both sides of the counter appreciate.”