Subway is making a strategic pivot in its pricing approach by discontinuing its $6.99, 6-inch Meal Deal program earlier than planned due to disappointing sales figures. The initiative was launched on November 3, 2023, aimed at boosting traffic and profitability, but did not meet Subway’s expectations for overall results, despite achieving targeted daily redemptions during its market test.
Initially, the Meal Deal offered a six-inch sub, a small fountain drink, and a choice of either chips or two regular cookies for a total price of $6.00. While it will continue to be available through digital channels until December 26, the in-store promotion will officially end on December 4.
As a part of its ongoing efforts to offer value, Subway will introduce a new promotion, providing a 20% discount on any sub from November 27 to January 5, 2025. A Subway spokesperson emphasized that the company aims to be thoughtful and strategic in balancing consumer preferences while also ensuring the profitability of franchisees. The brand is committed to adjusting its offerings based on feedback and data to better serve guests and boost their overall business performance.
Despite launching various initiatives, Subway has faced significant challenges in recent years, including the closure of over 6,500 restaurants in the U.S. since 2016 and other operational setbacks. The upcoming retirement of CEO John Chidsey at the end of the year also highlights a period of transition for the company, with Carrie Walsh set to step in as interim CEO.
While Subway reassesses its value offerings, competitors such as Taco Bell and Wendy’s have successfully appealed to customers with cost-effective options. Additionally, McDonald’s plans to relaunch its revamped McValue menu in 2025, featuring a new “Buy One, Add One for $1” deal, which illustrates that the demand for budget-friendly meals remains strong in the fast-food market.
In summary, while Subway navigates through its current challenges, there is potential for a positive turnaround with new strategies in place. The company’s willingness to adapt to market feedback and adjust its offerings could pave the way for a more successful future.