Subway has abruptly ended its $6.99 value meal earlier than expected after the company told its franchisees the deal “is not driving anticipated results.”
The fast food chain’s corporate office sent a memo to Subway operators stating that the 6-inch Meal Deal will end on Wednesday, despite being scheduled to end on Dec. 26, Restaurant Business Magazine reported.
The deal, launched on Nov. 3 to celebrate National Sandwich Day, offered customers the option of a six-inch sub, a small fountain drink, a bag of chips, or two regular cookies.
However, the company alluded that the bargain failed to bring in enough traffic to keep it going for another month.
“The Meal Deal was designed to help drive a lift in traffic, sales and, ultimately, restaurant-level profitability, and delivered on these objectives during the market test,” a memo viewed by Restaurant Business Magazine stated.
“While the national Meal Deal promotion is delivering the expected number of daily redemptions, overall the promotion is not driving the anticipated results.”
The company said it would switch to a digital offer of 20% off any sub ordered on its app through Jan. 5.
Fast-food chains have been offering promotions and meal deals, such as McDonald’s popular $5 Meal Deal, to entice inflation-battered customers.
The Golden Arches recently announced it was extending the value meal through the first half of 2025 and adding a new “buy one, add one” option to its menu.
However, the sub-shop chain has encountered significant pushback from franchisees concerning value perceptions, with some locations not cooperating with value deals, according to Restaurant Business.
Also, about 7,000 locations have closed in the US since 2015 due to falling sales and low unit volumes, the outlet reported.
Still, Subway’s US sales rose 2% last year compared to 2022, according to market research firm Technomic.
The news that Subway would abruptly end its scheduled promotion came just days before CEO John Chidsey announced he would step down at the end of the year.
Chidsey, 62, took over the largest sub-shop chain in 2019 and was the first Subway CEO to come from an outside brand.
During his tenure, he pushed promotions and deals and helped sell Subway to private equity firm Roark Capital in a more than $9 billion deal last year.
Chidsey is expected to stay on as a consultant at Subway to help with international expansion.
Carrie Walsh, Subway’s president of Europe, Middle East, and Africa and the company’s former chief marketing officer, will serve as interim chief executive while the company searches for a permanent replacement.
Subway said it has franchisee commitments to build 10,000 new restaurants, including many locations abroad.
Founded in 1965, Subway has become a top global restaurant chain with 37,000 locations in over 100 countries, according to the restaurant’s website.
Subway restaurants are owned and operated by a franchisee network that includes more than 20,000 dedicated entrepreneurs and small business owners.
