Staff Reports
Subway’s attempts to reel in customers with a flashy $6.99 foot-long deal have hit a snag, leaving franchisees up in arms. The sandwich chain, typically pricing its foot-long subs at a more palatable $11 to $17, has inadvertently sparked a mini-revolt within its largest franchise group, the North American Association of Subway Franchisees (NAASF). With more than 2,500 franchises under its belt—accounting for over 10 percent of Subway’s 20,000 establishments—the NAASF is advising members to skip this promotion altogether.
NAASF’s CEO, Bill Mathis, wasted no time in making the organization’s position clear. The message was straightforward: if the franchise agreement permits, all franchise owners should opt out of this ill-fated promotion. As Subway struggles to find its footing in a fast food landscape altered by the pandemic, Mathis emphasized the financial risks involved. With franchise profits already stretched thin due to corporate demands for renovations, the potential strain from this sandwich deal couldn’t come at a worse time.
Breaking News: Subway's $6.99 Foot-Long Deal Sparks a Revolt Among Largest Franchisee https://t.co/I5LcNy9oG5 pic.twitter.com/OCUYU8uXBv
— ZBreakingNewz (@ZBreakingNewz) August 28, 2024
The reality on the ground is grim as 23 Subway locations across the U.S. and Canada unexpectedly closed their doors, leading employees to discover their jobs had vanished without a whisper from corporate. Many waitstaff and sandwich artists found themselves unceremoniously dumped, with some being instructed to simply place a sign on the door announcing their impending closure. For everyone involved, the lack of communication from above was as bland as the bread on an unimpressive sub.
For those franchisees who decided to participate in the $6.99 deal, the outcome has been less than appetizing. Reports indicate that about 20 percent of their sales were linked to the foot-long deal, but the influx of customers they had hoped for didn’t follow. One franchisee expressed frustration at how the best-selling items were put on a discount menu while competitors like McDonald’s wisely reserve their fan favorites for full price. Some franchise owners believe they could have fared better by limiting the menu for similar promotions, which would prevent them from feeling the crunch that comes with deep discounts.
The ongoing struggle highlights a much larger issue within the fast-food sector: the tension between corporate strategies and local profitability. Franchisees are now clamoring for more autonomy in decision-making, urging the corporate office to think about their bottom line in future promotions. The outcome of this spat isn’t just crucial for Subway but could serve as a bellwether for the industry’s future as larger chains wrestle with buffering economic pressures and soaring food costs. With various challenges weighing down on them, the fast-food landscape may be on the cusp of a profound transformation—one that could reshape who gets to enjoy lunch on the go and at what price.
