How a $5 sandwich sparked a war between Subway and its franchisees.
The rise and demise of Subway’s $5 footlong promotion. Subway’s famous promotion made the sandwich franchise billions — but the deal wasn’t as sweet for individual shop owners.
574CD205-6BC8-48E3-9BC2-7F46BD390911.gif
In 2008, Subway introduced a tantalizing deal: For just $5, one could purchase any “footlong” (12-inch) sandwich. The promotion was a smash hit with cash-strapped customers during the recession — and its (“five-, five-, five-dollar footlong…”) became the company’s calling card. Within a year, foot traffic skyrocketed across the franchise’s thousands of locations. Revenue from $5 footlongs alone topped $3.8B.[/FONT]
[FONT=Roboto]It was, according to many industry analysts, one of the most successful promotions in the history of American cuisine.
But the deal wasn’t so hot for Subway’s franchisees. Eager to grow at all costs, Subway refused to let the promotion die. As inflation drove up the cost of doing business, the $5 footlong became financially unsustainable for many of the independent entrepreneurs who owned the company’s eateries.
This is the story of a promotion gone very right, and then very wrong. But it’s also a parable about the oft-conflicting goals of small business owners and large corporations.
A0904310-1480-4BC4-9CE9-7552CDA31DDF.jpeg
6720DDF1-AFE9-4B3B-837B-97B0FBE5006A.jpeg
E935CBCC-7171-465F-ABCE-21E6506E66C7.jpeg
559EFCAF-F394-4C04-80E5-0CD22EA2D73B.jpeg
https://thehustle.co/how-a-5-sandwic...s-franchisees/