Subway has decided to discontinue its $6.99, 6-inch Meal Deal earlier than planned, due to disappointing sales figures. The Meal Deal, which was introduced on November 3, included a 6-inch sub, a small fountain drink, and the option of chips or two regular cookies for a total of $6.00. Although it initially met expectations during the market test phase, the promotion did not achieve the anticipated results on a national scale, leading to the decision to phase it out in-store by December 4, but to continue offering it via digital channels until December 26.
In response to these challenges, Subway plans to offer a 20% discount on any sub from November 27 to January 5, 2025. A spokesperson emphasized that Subway’s strategy regarding value offerings is data-driven and aims to balance customer needs with franchisee profitability. The company remains committed to testing new value propositions to enhance customer traffic and repeat visits, and it is responsive to feedback.
Subway has been grappling with financial hurdles recently. More than 6,500 restaurants have closed in the U.S. since 2016, and the company faced significant operational challenges, such as a substantial embezzlement event affecting a franchisee. The recent announcement of CEO John Chidsey’s retirement at the end of the year marks another significant change for the company, with Carrie Walsh set to take over as interim CEO.
Despite Subway’s struggles, competitors like Taco Bell and Wendy’s have successfully implemented lower-cost options, and McDonald’s plans to refresh its value menu in 2025 to attract more customers.
In summary, while Subway’s recent value initiative has not yielded the desired outcomes, the chain is adapting its strategy to better meet market demands. This flexibility could bolster its performance moving forward, positioning Subway to thrive in a competitive landscape. By taking these necessary steps, there is potential for Subway to regain footing and attract customers with new offers in the coming year.