Subway to Offer $6.99 Footlong Value Meals After Snack Promotion Fails

Subway is set to revamp its marketing approach in response to a recent decline in sales, shifting its focus from snack promotions to value meals. During a conference call with franchisees, CEO John Chidsey announced that starting August 26, the chain will introduce a $6.99 daily promotion featuring a different foot-long sub available for online orders. This initiative could offer discounts exceeding 50% on select items, with full-price foot-longs reaching up to $13.99 in some New York City locations. In addition to the daily sub promotion, Subway plans to launch a "triple play" deal, which includes a four-inch sandwich, soup, chips, and two cookies for $6. While the company has previously promoted buy-one-get-one-free offers, executives clarified that the new discounts will not require customers to purchase two sandwiches. Despite these efforts, franchisees expressed concerns about the profitability of such promotions, with many struggling to maintain margins. Chidsey acknowledged the challenges facing the brand, noting that the quick-service restaurant industry experiences downturns every eight to ten years. He emphasized the importance of focusing on core menu items, indicating a potential phase-out of less popular offerings like Dippers. While the top 20% of Subway locations reported a 5% increase in same-store sales, the overall sentiment among franchisees remains cautious, as many are barely breaking even in the current market climate.