FLAGSTAFF, AZ - Subway is testing a new café concept with upscale décor and an expanded menu.
The newest Subway Café opened Wednesday in Flagstaff.
The spacious restaurant features chic lighting, flat-screen televisions, stuffed chairs, pastries and blended drinks not typical in traditional Subway restaurants.
About 15 of the cafes have opened up around the country. A Subway spokesman says the company plans to expand the concept on a case-by-case basis.
A restaurant industry analyst says Subway is combining its traditional sandwiches with new offerings to see if people are willing to abandon their allegiances with McDonalds and Starbucks. The franchise owner in Flagstaff says he has poured more than $250,000 into the café.
Subway recently topped McDonalds in the number of restaurant locations but lags in sales.
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