Subway has abruptly ended its $6.99 worth meal sooner than anticipated after the corporate advised its franchisees the deal “is not driving anticipated results.”
The quick meals chain’s company workplace despatched a memo to Subway operators stating that the 6-inch Meal Deal will finish on Wednesday, regardless of being scheduled to finish on Dec. 26, Restaurant Enterprise Journal reported.
The deal, launched on Nov. 3 to have fun Nationwide Sandwich Day, provided prospects the choice of a six-inch sub, a small fountain drink, a bag of chips, or two common cookies.
Nevertheless, the corporate alluded that the discount failed to usher in sufficient site visitors to maintain it going for an additional month.
“The Meal Deal was designed to help drive a lift in traffic, sales and, ultimately, restaurant-level profitability, and delivered on these objectives during the market test,” a memo seen by Restaurant Enterprise Journal said.
“While the national Meal Deal promotion is delivering the expected number of daily redemptions, overall the promotion is not driving the anticipated results.”
The corporate stated it could swap to a digital provide of 20% off any sub ordered on its app via Jan. 5.
Quick-food chains have been providing promotions and meal offers, reminiscent of McDonald’s fashionable $5 Meal Deal, to entice inflation-battered prospects.
The Golden Arches lately introduced it was extending the worth meal via the primary half of 2025 and including a brand new “buy one, add one” choice to its menu.
Nevertheless, the sub-shop chain has encountered vital pushback from franchisees regarding worth perceptions, with some areas not cooperating with worth offers, in response to Restaurant Enterprise.
Additionally, about 7,000 areas have closed within the US since 2015 attributable to falling gross sales and low unit volumes, the outlet reported.
Nonetheless, Subway’s US gross sales rose 2% final yr in comparison with 2022, in response to market analysis agency Technomic.
The information that Subway would abruptly finish its scheduled promotion got here simply days earlier than CEO John Chidsey introduced he would step down on the finish of the yr.
Chidsey, 62, took over the biggest sub-shop chain in 2019 and was the primary Subway CEO to return from an out of doors model.
Throughout his tenure, he pushed promotions and offers and helped promote Subway to non-public fairness agency Roark Capital in a greater than $9 billion deal final yr.
Chidsey is predicted to remain on as a advisor at Subway to assist with worldwide enlargement.
Carrie Walsh, Subway’s president of Europe, Center East, and Africa and the corporate’s former chief advertising and marketing officer, will function interim chief government whereas the corporate searches for a everlasting alternative.
Subway stated it has franchisee commitments to construct 10,000 new eating places, together with many areas overseas.
Based in 1965, Subway has turn into a prime international restaurant chain with 37,000 areas in over 100 nations, in response to the restaurant’s web site.
Subway eating places are owned and operated by a franchisee community that features greater than 20,000 devoted entrepreneurs and small enterprise house owners.
