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Why Subway Restaurant is Ending its $6.99 Meal Deal Early
A notice to operators last week announced that Subway will remove its $6.99 Meal Deal from its menu boards on Wednesday, November 27. However, customers can still order the deal via the fast-food chain’s digital platforms until December 26.
The $6.99 Meal Deal was introduced on November 3 and included any six-inch sub from the Subway—either chef-crafted or customized—accompanied by a side of chips or two standard cookies and a small fountain drink. Although this promotion was intended to last until the last week of December 2024, it is being discontinued a month earlier due to its subpar performance.
According to a message accessed by Restaurant Business, “The Meal Deal was intended to increase customer traffic, sales, and boost restaurant-level earnings, achieving its goals during the market test. While the Meal Deal was receiving the anticipated daily redemptions at a national level, it has not generated the expected overall results.”
The communication highlighted that while promotions can sometimes take longer to gain traction, after careful discussions with franchisees and evaluating the unsatisfactory data associated with the offer, the decision was made to terminate it.
Subway Launches 20% Off Digital Offer for Subs
To replace the short-lived $6.99 Meal Deal, Subway will introduce a new digital promotion that offers customers a 20% discount on any sub from November 27 to January 5.
In a statement sent to Restaurant Business, Subway emphasized its flexible approach to value-oriented offers, although it refrained from openly commenting on this transition.
“Subway’s strategy regarding value is intentional and data-driven, balancing consumer demands while safeguarding franchisee profits,” the company stated. “We continually test new value concepts to drive profitable customer traffic and encourage repeat visits. We take feedback and data into account, and will quickly adjust our strategy as needed to ensure we meet the needs of our franchisees, customers, and the overall business.”
Fast-Food Chains Prioritize Value Amid Rising Consumer Prices
This year, value promotions have become a key focus in fast-food advertising as many chains have seen a drop in traffic due to customers’ frustrations with increasing prices. Various brands are introducing budget-friendly offers to draw in customers. For instance, McDonald’s launched a new value initiative, McValue, showcasing a variety of affordable deals.
Yet, value promotions can face pushback from franchisees, who have to balance these offers with their goal of maintaining profitability. This becomes even more difficult in high-cost areas, where uniform national pricing may affect earnings, and for operators already struggling to uphold their margins.
Subway has encountered significant resistance from franchisees concerning value-driven promotions. The chain, having witnessed declining sales and low unit volumes, has closed nearly 7,000 U.S. locations since 2015. Additionally, dissent from some franchisees who choose not to participate in value promotions can hinder the success of such initiatives.