Subway has decided to end its $6.99 value meal earlier than expected, citing that the deal did not meet the anticipated results. The fast-food chain sent a memo to its franchisees informing them that the 6-inch Meal Deal, which was supposed to run until December 26, would now end on Wednesday.
The deal, which was launched on November 3 to celebrate National Sandwich Day, offered customers a six-inch sub, a small fountain drink, a bag of chips, or two regular cookies. Despite the initial excitement surrounding the promotion, Subway found that it did not drive enough traffic to justify keeping it going for another month.
In a memo viewed by Restaurant Business Magazine, Subway stated that while the Meal Deal was designed to increase traffic, sales, and profitability, it did not meet those objectives on a national scale. As a result, the company has decided to switch to a digital offer of 20% off any sub ordered through its app until January 5.
This move comes at a time when many fast-food chains are offering promotions and meal deals to attract customers amid rising inflation. McDonald’s, for example, has been offering its popular $5 Meal Deal to entice budget-conscious consumers.
Despite Subway’s efforts to drive sales through promotions, the chain has faced challenges from franchisees who have expressed concerns about the perception of value. Additionally, around 7,000 Subway locations in the US have closed since 2015 due to declining sales and low unit volumes.
However, Subway’s US sales saw a 2% increase last year compared to the previous year, according to market research firm Technomic. The decision to end the value meal promotion coincided with the announcement that CEO John Chidsey would be stepping down at the end of the year.
Chidsey, who took over as CEO in 2019 and was the first Subway CEO to come from an outside brand, played a key role in promoting deals and overseeing the sale of Subway to private equity firm Roark Capital in a multi-billion dollar deal last year. He will continue to serve as a consultant to Subway to aid in international expansion.
In the interim, Carrie Walsh, Subway’s president of Europe, Middle East, and Africa, and former chief marketing officer, will serve as the interim CEO while the company searches for a permanent replacement. Subway has also announced plans to open 10,000 new restaurants, with a focus on international expansion.
With over 37,000 locations in more than 100 countries, Subway has established itself as a top global restaurant chain. The restaurants are owned and operated by a network of franchisees, comprising over 20,000 entrepreneurs and small business owners.
