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Subway is ending its latest value offering after poor performance
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Subway is ending its latest value offering after poor performance

Subway

Subway is ending a $6.99 value offer early. | Photo courtesy of Subway.

Subway is ending a $6.99 6-inch meal deal ahead of schedule after the promotion’s results fell short of expectations, according to a notice sent to operators on Friday seen by Restaurant Business.

The promotion, which launched in restaurants on November 3, will end next Wednesday, although it will be available through the company’s digital channels through December 26.

“The Meal Deal is designed to increase attendance, revenue and ultimately profitability at the restaurant level, and achieved these objectives during the market test,” the release said. “While the national Meal Deal promotion is delivering the expected number of daily redemptions, the promotion is generally not delivering the expected results.”

Subway plans to switch to a digital offering on Wednesday, giving customers 20% off each sub. That offer is expected to run until January 5.

In an emailed statement, Subway said it will quickly adjust value offerings as necessary, although the company did not explicitly acknowledge the change.

“Subway’s approach to value is thoughtful and strategic, using data to balance consumer needs while protecting franchisee profits,” the company said. “We are constantly testing new value platforms aimed at driving profitable traffic and encouraging repeat visits. We take feedback and data seriously, and when necessary, we quickly adjust course to ensure we’re doing what’s best for our franchisees, guests and the overall business.”

Value has become an important part of fast food marketing this year as traffic has declined at many chains due to consumer frustration with high prices. Several chains are currently carrying out value promotions. McDonald’s on Friday announced a new value platform called McValue, which will include several types of budget-friendly promotions.

Still, value offerings can meet resistance from franchisees who need to make a profit from selling their menu items. This is particularly true in some high-cost markets, where national price setting can be particularly difficult, and in systems where operators struggle to make profits.

Subway in particular has faced pushback from franchisees on the value front. Low unit volumes and weak sales have closed about 7,000 U.S. locations since 2015. Some franchisees do not want to participate in value agreements, which can also affect their effectiveness.

Subway hoped the Meal Deal, which mirrors the offerings of fast-food chains like McDonald’s, would resonate with consumers. The company said in its note that it expected the offering to outperform in test markets, with national marketing behind it.

Promotions may take some time to gain traction, the release said, but after consultation with franchisees and data from the offer, the decision was made to end the offer.

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