Subway said it is tweaking its marketing strategy to combat a recent sales slump, switching from promoting snack foods to offering value meals, according to sources on a conference call with franchisees.
Subway CEO John Chidozie said Thursday that the company will begin a promotion offering a different one-foot sub every day for $6.99 when ordering online, starting Aug. 26. The promotion is scheduled to run for two weeks.
That could be more than 50% off depending on the day. At some New York City locations, the regular prices are $11.89 for a one-foot Titan Turkey sub and $13.99 for The Beast.
The chain has recently advertised a “buy one sandwich, get one free” promotion, but executives said you don’t have to buy two sandwiches to get the discount.
Subway said on the conference call that it had tried a promotion in Los Angeles offering $7.99 a foot but didn’t attract customers, so it decided to lower the price by another $1.
The company also plans to offer a triple play, offering a four-inch sandwich, soup, chips and two cookies for $6.
A Subway spokesman declined to comment Thursday.
Subway has seen same-store sales declines of more than 8% year-over-year in some regions in recent weeks, faring worse than peers such as McDonald’s and Burger King, The Washington Post reported exclusively this week.
During the conference, Subway announced that same-store sales at its top 20% of restaurants increased 5% over last year.
Rival McDonald’s has extended its $5 value menu offer through October, putting pressure on Subway at a time when fewer customers are heading to fast food restaurants.
Subway has been heavily promoting its Dippers snacks (in flavors like pepperoni and cheese) for $3 each in recent months. The expectation was that customers would buy subs and Dippers, but the Dippers aren’t selling.
“They’re trying to get rid of Dippers, which was a terrible idea,” a Subway restaurateur told The Post.
According to sources, Chidosie stressed the need to focus on core menu items.
The CEO was speaking as if the brand was in dire straits, the owner said.
“He said these downturns in the fast-food industry happen every eight to 10 years and that Subway needs to prepare for 2026 and beyond.”
Franchisees asked tough questions in the chat box, such as how such promotions would benefit operators, but Chidosie did not answer them, the owners said.
Subway does not own any of its stores and many of its franchisees make little to no profit, sources said.
