Subway abruptly ended the $6.99 worth of meals earlier than expected after the company told franchisees that the deal “will not deliver the expected results.”
The fast food chain's headquarters sent a memo to Subway operators saying the 6-inch meal deal would end on Wednesday, even though it was scheduled to end on December 26th (Restaurant Business Magazine) reported.
The deal, launched Nov. 3 to celebrate National Sandwich Day, offered customers the option of a 6-inch subwoofer, a small fountain drink, a bag of chips or two regular cookies.
However, the company hinted that the bargain was not able to attract enough traffic to last another month.
“Meal deals are designed to drive increased foot traffic, sales, and ultimately restaurant-level profitability, and these are We have achieved our goal.”
“Although the national meal deal promotion is achieving the expected daily redemption numbers, overall the promotion has not delivered as much results as expected.”
The company announced that it will switch to a digital offer of 20% off items sub-ordered through the app until January 5th.
Fast food chains have been offering promotions and meal discounts, such as McDonald's popular $5 meal deal, to attract customers hit by inflation.
Golden Arches recently announced that it will extend Value Meals through the first half of 2025 and add a new “buy one, get one” option to its menu.
But Restaurant Business says the sub shop chain has faced significant backlash from franchisees over its values, with some stores not cooperating on value deals.
The store also reported that approximately 7,000 stores have closed in the U.S. since 2015 due to declining sales and volume.
Still, Subway's U.S. sales rose 2% last year compared to 2022, according to market research firm Technomic.
The news that Subway is abruptly ending a planned promotion comes just days before CEO John Chissey announced he would step down at the end of the year.
Chissy, 62, took over the largest chain of sub shops in 2019, becoming Subway's first CEO from an outside brand.
During his tenure, he drove promotions and deals, and last year helped sell Subway to private equity firm Rourke Capital in a deal worth more than $9 billion.
Chissy will remain as a consultant to Subway to help with international expansion.
Carrie Walsh, Subway's president of Europe, Middle East and Africa and the company's former chief marketing officer, will serve as interim chief executive officer while the company searches for a permanent replacement.
Subway said it has franchisee commitments to build 10,000 new restaurants, including many overseas.
Subway was founded in 1965 and has become the world's top restaurant chain with 37,000 stores in more than 100 countries, according to restaurant information. Website.
Subway restaurants are owned and operated by a network of franchisees that includes more than 20,000 dedicated entrepreneurs and small business owners.
