Subway is ending its latest value offering after poor performance

Subway is ending a $6.99 deal early. | Photo courtesy of Subway.

Subway is ending a $6.99 6-inch menu offer earlier than planned after the offer’s results did not meet expectations, according to a message sent to operators on Friday and obtained by Restaurant Business.

The promotion, which launched in restaurants on November 3rd, will end next Wednesday but will be available through the company’s digital channels until December 26th.

“The Meal Deal was intended to help increase traffic, sales and ultimately profitability at the restaurant level and achieved these goals during market testing,” the statement said. “While the nationwide Meal Deal promotion is delivering the expected number of daily redemptions, the promotion overall is not producing the expected results.”

Subway plans to switch to a digital offering on Wednesday and give customers a 20% discount on every sub. This offer is expected to last until January 5th.

In an emailed statement, Subway said it would quickly adjust value offerings as needed, although the company did not specifically acknowledge the change.

“Subway’s approach to value is thoughtful and strategic, leveraging data to balance consumer needs while protecting franchisees’ profits,” the company said. “We are continually testing new value-added platforms designed to help generate profitable traffic and encourage repeat visits. We take feedback and data seriously and quickly adjust course when necessary to ensure we are doing what is best for our franchisees, guests and the entire company.”

Value has become a key part of fast-food marketing this year as traffic has declined at many chains due to consumer frustration over high prices. Several chains are currently running special promotions. McDonald’s on Friday announced a new value platform called McValue that will include various types of budget-friendly promotions.

Still, inexpensive offerings can face resistance from franchisees who need to make a profit from selling their menu items. This is particularly true in some high-cost markets where setting national prices can be particularly difficult, and in systems where operators struggle to make a profit.

Subway, in particular, faced rejection from franchisees regarding value. Due to low volumes and weak sales, approximately 7,000 locations have been closed in the United States since 2015. Some franchisees do not want to cooperate with value deals, which can also impact their effectiveness.

Subway hoped the meal deal, which mirrors some of the offerings at fast-food chains like McDonald’s, would resonate with consumers. The company said in its statement that it expects the offering to perform better than in test markets due to nationwide marketing.

Promotions may take some time to take hold, the release said, but after consultation with franchisees and based on data from the offer, the decision was made to end the offer.

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