2024 | Subway Announces A New Price For Footlongs As It Enters The Value Menu Wars

It’s not $5, but Subway is reintroducing affordable footlongs and entering the fast restaurant value menu war.

Beginning August 26, Subway will sell any footlong sandwich for $6.99, a significant savings given that certain footlongs may cost up to $14 in some cities. It’s the privately held chain’s latest attempt to entice back customers who are avoiding rising fast food pricing and spending less when they do go out.

The offer has a catch: it is only available through the app or website with the code “699FL” and expires on September 8.

Subway Announces A New Price For Footlongs As It Enters The Value Menu Wars

A private equity firm controls subway, and unlike its publicly traded competitors, it rarely discloses sales figures. However, according to trade publication Restaurant Business, its sales and traffic challenges this year are similar to those of McDonald’s, Burger King, and Starbucks.

“Today’s diner is more stretched than ever, and too often that means sacrificing quality, variety, or flavour to find an affordable meal,” said Doug Fry, president of Subway North America, in a press statement. “Our menu is full of footlongs for every budget, and this new deal means our guests can get the sandwiches they crave at a great value.”

Subway has also been diversifying its menu as sandwich prices have risen. The business recently began selling $3 Dippers other Sidekick snacks priced between $2 and $5 to attract cash-conscious customers who may be turned off by the higher prices of its other items.

The inclusion of Sidekicks and Dippers “makes sense,” according to David Henkes, senior principal at Technomic, who told CNN that Subway needed to generate income someplace as fast food customers began to push back on price increases due to inflation.

“They’ve underperformed in the sandwich segment, so they need to shake things up a little bit and drive some incremental traffic,” Henkes told investors. According to technological data, Subway falls behind competitors in terms of side and snack sales.

Subway Announces A New Price For Footlongs As It Enters The Value Menu Wars

Subway has recently added customisation to its menu, doubled down on driving orders to its app, expanded its worldwide footprint, and introduced freshly sliced meats, a significant departure from the company’s traditional approach of delivering cold cuts pre-sliced.

Another important challenge for Subway is its declining shop count: the firm closed more than 400 stores in the United States in 2023, the fewest since 2005 (20,133).

SOURCE | CNN