Subway to launch value meals, including $6.99 footlong, this month
Subway has announced plans to adjust its marketing strategy in response to a recent drop in sales. According to sources who participated in a conference call with franchisees, the company will shift its focus from promoting snacks to offering value meals.
CEO John Chidsey revealed that starting on August 26, Subway will introduce a $6.99 promotion for a different foot-long sub each day, available exclusively for online orders. This promotion will initially run for two weeks and could result in discounts of over 50% on some subs. For example, in some New York City locations, the Titan Turkey sub usually costs $11.89, while The Beast is priced at $13.99.
Unlike recent buy-one-get-one-free deals, this new promotion will not require customers to purchase two sandwiches to receive a discount, according to executives.
Subway previously tested a $7.99 foot-long promotion in Los Angeles, but it failed to attract enough customers. As a result, the company decided to lower the price by another dollar.
In addition to the foot-long promotion, Subway plans to offer a "triple play" deal, which includes a four-inch sandwich, soup, chips, and two cookies for $6.
A Subway spokesperson declined to comment on the matter.
The Post recently reported that Subway has experienced same-store sales declines of over 8% in certain regions compared to last year, a figure worse than competitors like McDonald's and Burger King. However, during the conference call, Subway noted that the top 20% of its restaurants had same-store sales that were 5% higher than the previous year.
McDonald's has extended its $5 value meal promotion into October, adding pressure on Subway at a time when fewer consumers are visiting fast-food restaurants.
In recent months, Subway has heavily promoted $3 Dippers snacks (such as pepperoni and cheese) with the expectation that customers would buy both subs and Dippers. However, the Dippers have not been selling well.
"They're getting rid of Dippers. That was a terrible idea," one Subway restaurant owner told The Post.
Chidsey emphasized the importance of focusing on core menu items, sources said, with the owner noting that the CEO conveyed a sense of urgency about the brand's situation.