Subway is entering the ongoing “value wars” with a new Meal of the Day promotion.
The deal, which offers a daily rotating sandwich as a six-inch sub for $6.99 or a footlong for $9.99, comes with a side of chips or cookies and a small drink. Sandwich options range from the Cold Cut Combo to the Baja Chipotle Chicken.
Doug Fry, Subway’s president of North America, said that customers “shouldn’t have to sacrifice quality for an affordable price.” He positioned the promotion as the chain’s definition of value.
Indeed, value-based promotions have become essential in the fast food sector, as many chains offer competitive deals to attract cost-conscious customers. Subway’s new meal offer could be one way it hopes to keep up with competitors like McDonald’s (MCD-0.74%), which recently announced plans to launch a McValue menu, where it will offer a $5 Meal Deal and various other discounts to customers through its app.
While Subway’s new deal might seem appealing, it’s important to note that similar promotions, like its meal deal in Aug. 2024, are often designed to attract customers without drastically changing the pricing model. The strategy is one that Subway hopes will drive sales while maintaining its competitive edge.
With inflation pushing food prices higher, promotions like this often raise questions of whether customers are truly getting a deal, or is it just a tactic to maintain foot traffic without significantly lowering prices. R.J. Hottovy, head of analytics at Placer.ai, previously told Quartz that chains would likely continue introducing promotions in 2025, but value is just one element of what customers want, alongside factors like experience.
For consumers, value deals are important, especially in the today’s economic climate, but “it’s not enough to simply attract customers with a good deal,” Hottovy said. While new items like the Baja Bliss subs and Miss Vickie’s (PEP-2.15%) Chipotle chips add variety, it’s remains unclear if these promotions will offer lasting appeal or merely serve as a short-term fix in a saturated market.
As casual chains fight for attention and wallets, value offers are becoming table stakes. In the value wars, it’s still uncertain whether these promotions will lead to long-term loyalty or simply keep brands relevant.
In late November, Subway CEO John Chidsey announced that he would retire at the end of 2024, concluding his five-year tenure at the helm of the global brand. In addition to leadership changes, Subway faced legal challenges in October, when a proposed class-action lawsuit alleged that the sandwich chain was “grossly misleading” customers about its deli meat portion sizes.
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