Subway’s corporate office announced a nationwide promotion on January 1, 2018, where customers can get a footlong sub for $4.99. The promo affects 785 out of 1,138 franchise stores throughout Los Angeles, the Inland Empire, and Orange County, and franchisees are not happy about it.
The Orange County Register first reported on the complications associated with the promo, which discounts the sandwich by around $1.80. Franchisees are worried that the new price makes a significant cut into profit margins.
Bob Grewal owns master development rights for more than 2,000 Subways nationwide, and believes the promotion will help Subway compete against companies like McDonald’s and Taco Bell. A number of fast food restaurants recently lowered their value meal prices. Subway ran a similar promo in 2008 and 2012, with $5 subs, and in 2016 for $6.
Some franchisees chose not to participate in the $4.99 promo, especially where rent and costs are higher than average. Throughout Southern California, footlong prices range from $5.99 to $6.79. The $4.99 promo is valid only for the following sandwiches: black forest ham, meatball marina, spicy Italian, cold cut combo and veggie delite.
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