Subway is ending a $6.99, 6-inch Meal Deal earlier than planned after results from the offer didn’t meet expectations, according a message sent to operators on Friday, seen by Restaurant Business.
The promotion, which launched in restaurants on Nov. 3, will be pulled next Wednesday, though it will be available through the company’s digital channels through Dec. 26.
“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,” the message said. “While the national Meal Deal promotion is delivering the expected number of daily redemptions, overall the promotion is not driving the anticipated results.”
Subway plans to shift to a digital offer on Wednesday, giving customers 20% off any sub. That offer is expected to run through Jan. 5.
In an emailed statement, Subway said that it will quickly adjust value offers when necessary, though the company did not explicitly acknowledge the change.
“Subway’s approach to value is thoughtful and strategic, leveraging data to help balance consumer needs while protecting franchisee profits,” the company said. “We continuously test new value platforms aimed at helping drive profitable traffic and encouraging repeat visits. We take feedback and data seriously, and if needed, we quickly adjust course to ensure we’re doing what’s best for our franchisees, guests and overall business.”
Value has become a big component of fast-food marketing this year as traffic at many chains has weakened amid consumer frustration over high prices. Several chains are running value promotions right now. McDonald’s on Friday announced a new value platform, called McValue, which will contain several different types of budget-friendly promotions.
Yet value offers can run into resistance from franchisees that have to earn a profit from the sale of their menu items. This is particularly true in some high-cost markets where set national prices can be particularly difficult, and in systems where operators are struggling to generate a profit.
Subway in particular has faced franchisee pushback over value. With low unit volumes and weak sales, some 7,000 locations have closed in the U.S. since 2015. Some franchisees won’t cooperate with value deals, which can also influence their effectiveness.
Subway hoped the Meal Deal, which echoes some of the offers pushed by fast-food chains like McDonald’s, would resonate with consumers. The company said in its message that it expected the offer would perform better than it had in test markets, with national marketing behind it.
Promotions can take time to gain traction, the message said, but after consulting with franchisees and with data from the offer, the decision was made to end the offer.
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