Subway has pulled the plug on its $6.99 value meal deal a month earlier than planned, citing underwhelming results. Originally set to run until December 26, the promotion will now end on Wednesday, November 29. The fast-food chainโs corporate office issued a memo to franchisees, explaining that the offer โis not driving anticipated results,โ as reported by Restaurant Business Magazine.
What Was the $6.99 Meal Deal?
Launched on November 3 to celebrate National Sandwich Day, the $6.99 Meal Deal included a 6-inch sub, a small fountain drink, and a choice between a bag of chips or two cookies. The aim of the promotion was to boost customer traffic, increase sales, and improve restaurant profitability.
The deal initially performed well during testing, but Subway acknowledged that it didnโt meet expectations on a larger scale. According to the memo, โWhile the national Meal Deal promotion is delivering the expected number of daily redemptions, overall the promotion is not driving the anticipated results.โ
Whatโs Next for Subway?
In place of the $6.99 deal, Subway will roll out a new digital promotion offering 20% off any sub ordered through its app. This new deal will run until January 5, giving customers a reason to explore Subwayโs online ordering options.
The Battle for Value Deals
Subwayโs decision to end the promotion reflects broader challenges in the fast-food industry. Competing chains like McDonaldโs have successfully attracted cost-conscious customers with offers like the $5 Meal Deal, which McDonaldโs recently extended through mid-2025. Additionally, McDonaldโs introduced a โbuy one, add oneโ feature to its menu, keeping their promotions fresh and appealing.
Subway, however, has faced resistance from some of its franchisees when implementing value-based offers. Many operators feel such promotions hurt profitability, leading to inconsistent participation across locations.
Challenges for Subway
Subway has been grappling with declining U.S. sales for years. Since 2015, around 7,000 locations have closed, attributed to falling sales and low unit volumes. Still, there is a silver lining: Subwayโs U.S. sales rose by 2% in 2023 compared to 2022, according to data from market research firm Technomic.
The company has also made efforts to reinvent itself in recent years, including menu updates and marketing campaigns, but value deals remain a sore spot.
Leadership Shake-Up
The abrupt end of the $6.99 promotion coincides with major leadership changes at Subway. CEO John Chidsey recently announced his resignation, effective at the end of the year. Chidsey, 62, joined Subway in 2019, becoming its first CEO from outside the company.
During his tenure, he spearheaded promotional efforts, improved franchisee relations, and oversaw the companyโs sale to private equity firm Roark Capital in a deal worth over $9 billion. Although stepping down as CEO, Chidsey will stay on as a consultant, focusing on Subwayโs international expansion.
Carrie Walsh, Subwayโs current president for Europe, the Middle East, and Africa, will serve as interim CEO. Walsh previously served as the companyโs chief marketing officer, making her a familiar face as Subway searches for a permanent replacement.
A Global Vision
Despite setbacks in the U.S. market, Subway remains a global giant. With 37,000 locations in over 100 countries, the company is committed to growth. Subway has secured franchisee commitments to open 10,000 new restaurants, primarily focusing on international markets.
Founded in 1965, Subway has built its brand through a network of more than 20,000 franchiseesโdedicated small business owners who operate its locations worldwide.
What This Means for Customers
The end of the $6.99 value meal deal may disappoint fans looking for an affordable lunch, but Subwayโs shift to digital promotions indicates the chainโs willingness to adapt. For now, customers can take advantage of the 20% app discount while exploring other menu options.
As the fast-food industry continues to navigate inflation and changing customer expectations, Subwayโs ability to innovate and balance franchisee concerns will determine its success in a competitive landscape.
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