Subway pulls $6.99 meal deal amid disappointing results

In the United States, Subway has decided to terminate its $6.99 Meal Deal, which was initially scheduled to run until December 26, 2024. The abrupt decision came from the corporate office, which communicated that the promotion was not generating the expected traffic or sales to justify its continuation. Launched on November 3, 2024, the Meal Deal aimed to attract customers by offering a six-inch sub, a small fountain drink, a bag of chips, or two regular cookies in celebration of National Sandwich Day. Despite receiving the anticipated number of redemptions during a market test, the overall performance fell short of the company's expectations. As a response to declining returns from the promotion, Subway plans to pivot to a different strategy, introducing a digital offer of 20% off any sub ordered through its app until January 5, 2025. This shift is part of the fast-food chain's strategy to appeal to consumers grappling with rising inflation and economic pressures. Competing chains, such as McDonald's, have extended their value offerings—like the $5 Meal Deal—indicating a marketplace trend increasingly focused on value. The termination of the Meal Deal comes at a crucial time for Subway, following the announcement from CEO John Chidsey that he would step down at the end of the year. Chidsey, who has been at the helm since 2019, played a significant role in promoting various deals, culminating in the chain's acquisition by Roark Capital for over $9 billion last year. With his departure, Subway's leadership is transitioning, as Carrie Walsh, the current president responsible for Europe, the Middle East, and Africa, has taken on the role of interim CEO while the company searches for a new leader. This recent development also highlights the ongoing challenges faced by Subway, particularly from franchisee pushback regarding value perceptions, further complicated by the closure of around 7,000 outlets in the US since 2015 due to falling sales. Though Subway's US sales reported a 2% increase last year according to market research firm Technomic, the company must revamp its strategy to retain customer interest and adapt to the ever-changing fast-food landscape, especially as inflation continues to impact consumer spending habits.