Subway suddenly abandons meal deal after less than a month

Subway will no longer be offering its $6.99 meal deal, less than a month since its launch.

The sandwich chain confirmed it would end the deal at all participating US locations on November 27 in a message seen by Restaurant Business.

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'The Meal Deal was designed to help drive a lift in traffic, sales and, ultimately, restaurant-level profitability, and delivered on these objectives during the market test,' the message said. 

'While the national Meal Deal promotion is delivering the expected number of daily redemptions, overall the promotion is not driving the anticipated results.'

The $6.99 meal included any six-inch sub with a bag of chips or two cookies and a small fountain drink. 

Subway launched the meal deal on November 3 and initially planned to offer it nationwide until December 26.

The deal was the sandwich chain's effort to compete with other value offerings launched by major fast food companies this year - such as the McDonald's $5 promotion

It comes as Subway also announced earlier this week that CEO John Chidsey would be stepping down at the end of the year.

Subway is removing its $6.99 meal deal after the limited-time offer failed to meet sales expectations

Franchisees also revolted against a separate value deal earlier this year over fears it would spark losses.

Bill Mathis, chair of the North American Association of Subway Franchisees (NAASF), reportedly told the group's members to ignore the $6.99 footlong sandwich deal which ran in September. 

Subway said it would restrict the $6.99 meal deal to online orders only through December 26.

It is also now shifting its focus on a new digital deal, which gives customers a 20 percent discount on any sandwich ordered through the app through January 5. 

The fast food chain explained in an email to Restaurant Business that it can immediately adjust offers when necessary. 

'Subway's approach to value is thoughtful and strategic, leveraging data to help balance consumer needs while protecting franchisee profits,' the company said. 

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'We continuously test new value platforms aimed at helping drive profitable traffic and encouraging repeat visits.'

The company added that it takes 'feedback and data seriously' and adjust course to make sure they're doing what's best for 'franchises, guests and overall business.'

Prior to the $6.99 meal deal gone wrong, Subway had been struggling with tumbling sales and profits.

In August, the chain reportedly called an 'emergency meeting' with the franchisees that run its 19,000 restaurants. 

Subway does not give out overall sales data but its eastern US region of around 1,000 subways saw sales plunge 8.7 percent between June 25 and July 16 compared to a year earlier, the New York Post reported.

A spokesperson for the chain denied that the conference was an emergency, instead insisting 'we consistently and proactively communicate with our franchisees to share business updates and plans.'

Subway's $6.99 meal deal included any six-inch sub with a bag of chips or two cookies and a small fountain drink
Subway has closed about 7,000 locations since 2015 due to falling sales and low volume units
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The sandwich chain has also closed about 7,000 locations since 2015, and a franchisee who operates 48 restaurants filed for Chapter 11 bankruptcy protection in June. 

The $6.99 meal deal elimination was not the only Subway shakeup to occur this month.

Subway confirmed in a November 26 press release that CEO John Chidsey would retire after five years with the company.

Carrie Walsh, Subway's current President of Europe, Middle East and Africa (EMEA) and former Global Chief Marketing Officer (CMO), will assume the role of Interim CEO.

'I am honored to step into the role of Interim CEO, continuing to drive key initiatives to help boost franchisee profitability and delight our guests through innovation,' Walsh said.

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'Through a collaboration with the Subway leadership team, employees and our valued franchisees, we will keep elevating the Subway experience and deliver fresh, quality food to more guests around the globe.'

DailyMail.com has reached out to Subway for comment. 

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