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Subway Canada has expanded its in-restaurant snack portfolio through a national co-branding partnership with PepsiCo Canada’s Lay’s brand.
The collaboration introduces Lay’s Italian Herbs & Cheese flavoured potato chips, marking the first time the quick-service restaurant (QSR) chain has transitioned one of its signature freshly baked bread recipes into a packaged snack format. The limited-time offering (LTO) is rolling out exclusively across participating Subway locations throughout Canada.
The partnership reflects an ongoing food-and-beverage trend where established food service brands collaborate with leading consumer packaged goods (CPG) manufacturers to leverage existing consumer loyalty.
By translating the flavour profile of Subway’s most popular bread option into a packaged potato chip, both companies aim to drive incremental basket size at the point of sale.
According to PepsiCo Canada, the partnership allows the Lay’s brand to deliver a highly specific, localised taste profile to Canadian consumers who seek novel, limited-edition flavour profiles within the savoury snack category.
The development of the potato chip involved joint formulation efforts between the culinary teams of both multinational brands to replicate the exact sensory attributes of the baked bread. The product specifications include:
🧀 Italian Herbs & Cheese – A savoury potato chip that combines a blend of cheddar, parmesan, and garlic notes with a herb-forward finish to mimic the aroma and taste of Subway's signature crust.
The product is packaged in standard retail snack formats and is available exclusively at participating Subway franchise locations across Canada. The rollout is structured as a limited-time promotional campaign, available only while seasonal supplies last.
According to Chef John Botelho, Culinary Manager at Subway Canada, the Italian Herbs & Cheese bread has maintained a dedicated consumer following for decades. He noted that the collaboration represents a logical expansion of the brand's IP, allowing guests to experience a core menu staple in a versatile, portable snack format.
Kelsie Milbury, R&D Director at PepsiCo Canada, stated that the initiative aligned with the company's focus on introducing unexpected, high-engagement flavour profiles to the Canadian market. She highlighted that partnering with Subway provided a direct mechanism to merge QSR operational reach with PepsiCo’s established snack manufacturing capabilities.
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