Subway is ending its $6.99 meal service a month early after corporate headquarters issued a decree

Subway has abruptly ended its $6.99 meal service earlier than expected after the company told its franchisees that the deal “is not producing expected results.”

The fast-food chain’s corporate headquarters sent a memo to Subway operators saying the 6-inch meal deal will end Wednesday, even though it was scheduled to end on Dec. 26, Restaurant Business reported Magazines.

The deal, launched Nov. 3 to coincide with National Sandwich Day, offered customers the choice of a six-inch sub, a small fountain drink, a bag of chips or two regular cookies.

However, the company noted that the store wasn’t generating enough traffic to keep it running for another month.

“The Meal Deal was intended to help increase traffic, sales and ultimately profitability at the restaurant level and achieved these goals during market testing,” said a memo viewed by Restaurant Business Magazine.

“While the nationwide Meal Deal promotion is delivering the expected number of daily redemptions, the promotion overall is not producing the expected results.”

The company announced that it would switch to a digital offer with a 20% discount on all subscriptions ordered through its app by January 5th.

Fast food chains have offered promotions and meal deals like McDonald’s popular $5 menu to lure customers hit by inflation.

Golden Arches recently announced that it will extend the value meal through the first half of 2025 and add a new “Buy One, Add One” option to its menu.

However, according to Restaurant Business, the subshop chain has encountered significant resistance from franchisees regarding value perception, with some locations not cooperating on value propositions.

Additionally, about 7,000 locations in the U.S. have closed since 2015 due to declining sales and low unit volumes, the outlet reported.

Still, Subway’s U.S. sales rose 2% last year compared to 2022, according to market research firm Technomic.

The news that Subway would abruptly end its planned promotion came just days before CEO John Chidsey announced he would step down at the end of the year.

Chidsey, 62, took over the largest subshop chain in 2019 and was the first Subway CEO to come from a third-party brand.

He promoted promotions and deals during his tenure and helped sell Subway to private equity firm Roark Capital last year in a more than $9 billion deal.

Chidsey is expected to remain at Subway as a consultant to help with international expansion.

Carrie Walsh, Subway’s president of Europe, the Middle East and Africa and the company’s former marketing director, will serve as interim chief executive while the company searches for a permanent replacement.

Subway said it has committed as a franchisee to build 10,000 new restaurants, including many locations overseas.

Founded in 1965, Subway has grown into a leading global restaurant chain with 37,000 locations in over 100 countries, according to the restaurant’s website.

Subway restaurants are owned and operated by a franchisee network of more than 20,000 dedicated entrepreneurs and small business owners.