Subway has decided to end its $6.99, 6-inch Meal Deal promotion earlier than expected due to disappointing sales figures. Originally launched on November 3, the Meal Deal included a six-inch sub, a small fountain drink, and a choice of chips or two cookies for $6. However, despite meeting planned daily redemption goals, it failed to achieve the expected impact on overall sales and profitability, prompting the company to reassess its strategy.
While the Meal Deal will conclude in-store on December 4, it will remain available through digital platforms until December 26. In its place, Subway has introduced a new offer giving customers 20% off any sub from November 27 to January 5, 2025. A Subway spokesperson emphasized their commitment to a thoughtful and strategic approach to value, stating that they continuously test new pricing strategies while prioritizing the interests of franchisees and customers.
In recent years, Subway has encountered significant financial challenges. The chain has closed over 6,500 locations in the U.S. since 2016 and has faced issues such as a franchisee bank account hack that led to substantial financial losses. As of this year, Subway operates more than 37,000 restaurants across over 100 countries, with around 20,400 in the U.S.
Additionally, Subway will see a leadership change as its CEO, John Chidsey, plans to retire at the end of the year. Chidsey, who took the brand leadership role in 2019, will be succeeded by Carrie Walsh, the current president for the Europe, Middle East, and Africa regions.
Compared to Subway’s recent struggles, other fast-food chains such as Taco Bell and Wendy’s have successfully implemented lower-cost menu options. Looking ahead, McDonald’s is also preparing to refresh its value offerings in 2025 with the introduction of the McValue menu, which will feature new deals designed to attract budget-conscious customers.
In summary, although Subway is adjusting its strategy in response to the challenges of the Meal Deal promotion, the introduction of new discounts and offers indicates a responsive approach aimed at boosting sales and customer engagement. This adaptability could lead to future success and is a reminder of the importance of listening to consumer feedback in the competitive fast-food market.