Subway initiates a fresh pricing strategy for its footlongs, joining the competitive value menu battles.
Starting August 26, Subway will offer any footlong sandwich for $6.99, which is considerably less than the usual $14 price in certain locations. This discount is part of Subway's strategy to attract customers who are avoiding expensive fast food and opting for cheaper options when they do dine out.
However, there's a condition: The offer can be availed only through the app or website using the code "699FL", and it ends on September 8.
Subway, a company owned by a private investment firm, isn't known for publicizing its sales like its publicly traded competitors do. But according to the trade magazine 'Restaurant Business', Subway's sales and customer traffic are facing issues, similar to what McDonald's, Burger King, and Starbucks have experienced this year.
Doug Fry, president of Subway North America, stated in a press release, "The modern diner is under immense stress, often compromising on quality, selection, or flavor to find an affordable meal. Our menu boasts a variety of footlong sandwiches for every budget, and this new offer ensures our customers can enjoy their favorite sandwiches at an affordable price."
In response to rising sandwich prices, Subway has also started selling $3 'Dippers' and 'Sidekick snacks' priced between $2 and $5. According to David Henkes, senior principal at Technomic, Subway needs to generate revenue from somewhere as fast food customers are reacting negatively to price hikes due to inflation.
Subway's introduction of 'Sidekicks' and 'Dippers' is a smart move, Henkes added, because Subway has lagged behind in sandwich sales and needs to boost customer traffic, while also falling short in cookie and chip sales compared to its competitors.
In recent times, Subway has introduced customization options to its menu, emphasized on mobile ordering, expanded internationally, and introduced freshly sliced meats. Subway shifted from delivering pre-sliced cold cuts to freshly sliced ones, marking a significant change in its methods.
However, Subway is also grappling with a significant challenge: its shrinking store count. The chain closed over 400 restaurants in the US in 2023, ending the year with just 20,133 stores - the lowest since 2005.
The discounted footlong sandwiches are a part of Subway's food business strategy to attract budget-conscious customers. With the introduction of affordable options like $3 'Dippers' and 'Sidekick snacks', Subway aims to generate revenue in their food business, addressing the negative reaction of fast food customers towards price hikes.
