Subway abruptly terminated a $6.99 meal earlier than expected after the company told franchisees the deal “does not produce the results expected.”
The fast food chain's corporate office sent a memo to Subway operators saying the 6-inch meal offering would end Wednesday, even though it was scheduled to end on Dec. 26, Restaurant Business Magazine reported.
The deal, which launched on November 3 to celebrate National Sandwich Day, offered customers the option of getting a 6-inch sub, a small fountain drink, a bag of chips, or two regular crackers.
However, the company hinted that the deal failed to bring in enough traffic to keep it going for another month.
“The meal deal was designed to help increase traffic, sales, and, ultimately, profitability at the restaurant level, and these goals were achieved during market testing,” said a memo seen by Restaurant Business Magazine.
“Although the National Meals Deal promotion delivers the expected number of daily redemptions, the promotion overall does not deliver the expected results.”
The company said it will switch to a digital offer with a 20% discount on any sub-order on its app until January 5.
Fast food chains are offering promotions and meal deals, such as McDonald's popular $5 meal offer, to entice inflation-hit customers.
Golden Arches recently announced the extension of the value meal through the first half of 2025 and the addition of a new “buy one, add one” option to its menu.
However, the branch store chain has faced significant opposition from franchisees regarding perceptions of value, with some locations not cooperating with value deals, according to Restaurant Business.
The outlet also reported that about 7,000 locations in the United States have closed since 2015 due to declining sales and declining unit sizes.
However, Subway's U.S. sales rose 2% last year compared to 2022, according to market research firm Technomic.
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 Subway chain in 2019 and was the first Subway CEO to come from an outside brand.
During his tenure, he enhanced promotions and deals and helped sell Subway to private equity firm Roark Capital in a deal worth more than $9 billion last year.
Chidsey is expected to remain as a consultant at Subway to assist with international expansion.
Carrie Walsh, Subway's EMEA president and former corporate marketing executive, will serve as interim CEO while the company searches for a permanent replacement.
Subway said it has franchise commitments to build 10,000 new restaurants, including several locations abroad.
Founded in 1965, Subway has become one of the largest global restaurant chains with 37,000 locations in more than 100 countries, according to the restaurant's website.
Subway restaurants are owned and operated by a franchisee network of more than 20,000 dedicated entrepreneurs and small business owners.
