Subway Introduces $6.99 Footlongs Amid Franchisee Challenges and Restaurant Shutdowns

According to The Sun, SUBWAY announced on Friday that it will be offering savings with discounted sandwiches, providing a much-needed boost to its customers. The popular fast-food chain revealed that it will introduce a new menu deal next week, allowing fans to purchase any footlong sub for just $6.99. This deal includes all 22 items from the Subway Series menu as well as customized subs. The promotion will run from August 26 through September 8, and customers can take advantage of it by using the promo code 699FL on the Subway app or website.

Doug Fry, President of Subway, highlighted the importance of offering affordable meals without compromising quality. “Today’s diner is stretched more than ever, and too often that means a tradeoff on quality, variety, or flavor to find an affordable meal,” Fry said in a press release. “At Subway, our definition of value is a mix of delicious options at the right price without compromising quality. 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.”

Franchisee Concerns

The announcement of the $6.99 deal follows a recent meeting Subway called with its franchisees, reportedly due to declining sales and profits. According to The New York Post, the August 15 meeting was intended to discuss strategies to improve foot traffic and market share. The invitation, sent to over 19,000 franchisees, was described as urgent by some, though Subway executives clarified that the meeting was part of their regular communications with franchisees.

One franchisee with nearly 20 Subway locations reported a 5% to 10% drop in same-store sales compared to the previous year. He criticized the company’s recent promotions, including the buy-one-get-one-free footlong deal, claiming that such offers were not profitable. “Charging $6.99 for any sub while they are $11 on the menu,” he said, “Offering three sandwiches for $17.99.”

However, not all franchisees were critical of the promotions. Kevin Allen, another Subway franchisee, argued that these deals have actually benefited his restaurants. “As soon as coupons are live, we see a difference in our restaurants,” Allen told FOX Business. “Right now, with the increase in food and grocery prices, coupons are more valuable than ever, and they have proven in our market to boost sales and traffic.”

Subway’s Struggles

Despite being the largest fast-food chain in the U.S. by number of locations, Subway has faced significant challenges, including the closure of around 7,000 restaurants since 2015. The chain still operates approximately 20,000 locations, but some closures have been abrupt. For instance, 23 Subway locations in Oregon and Washington recently shut down after the franchisee’s bank account was hacked, leading to a loss of hundreds of thousands of dollars.

Ann Bell, who ran the franchise CapTen Enterprises, explained that the loss was classified as fraud and was not covered by the FDIC. “I thought I could handle it, I thought I could work through it, and I thought that money would come,” Bell told CBS affiliate KOIN 6 News. Despite her efforts, Bell was forced to close the nearly two dozen locations on August 9, and Subway ended her franchisee rights.

A Subway spokesperson stated that the company is working quickly to reopen the affected locations. “Our priority is to ensure guests can continue enjoying freshly made, high-quality, delicious food by identifying experienced operators within our system who can quickly take ownership and re-open the restaurants,” the spokesperson said.