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The $5 Subway is now the $15. Customers want their old business back.

Will Subway make a new

Will Subway make a new “$15 footlong” jingle? -Getty Images for Subway

It’s been years since Subway offered a $5 long sandwich, a deal celebrated with a catchy jingle. Now, sandwiches can cost as much as $15.

And the chain’s regular customers aren’t happy about the inflationary situation at all.

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“People ripped off for $15 subscribers too,” said one Reddit user.

“I made my own sandwich last night. I calculated that it cost me about $3-$4 worth of ingredients.” another Reddit user noted.

The debate over Subway’s pricing has been a hot topic lately, especially since news broke that the chain was holding a full-scale meeting with North American franchisees about ways to boost business.

Naturally, customers want to see a return to the good old days of those 5-foot-long bucks, and say that’s the best way to earn their business. “It’s so easy,” said another Reddit user.

The $5 deal ended in 2014, and Subway fares currently range from about $8 to $15, though prices vary by location. A combo meal of a sandwich with chips and a drink adds a few bucks to the tab. Extras like more meat and cheese also increase the price.

Of course, few fast-food industry observers predict that the $5 deal will ever return. But Subway franchisees told MarketWatch that the bargains are still important sales incentives.

“Promotions can only help us increase traffic,” said Monica Laldin, a Georgia Subway franchisee with seven locations.

Subway has deals that drop the cost of a sandwich below $10, such as a current buy-a-foot-long-get-one-free deal. But the chain — which generates about $10 billion in annual sales and was acquired last year by Roark Capital in a reported $9.6 billion deal — faces pushback from some franchisees because the deals can cut into profits.

Subway is far from the only fast-food chain facing a difficult financial environment, driven in recent years by higher food and labor costs. As chains raised prices to counter these developments, inflation-weary customers expressed their displeasure and often opted not to frequent establishments as much.

McDonald’s MCD became a focal point for this, especially when word spread of a location charging nearly $18 for a Big Mac meal. In a recent letter to customers, McDonald’s US president Joe Erlinger indicated that this is more the exception than the rule, although he noted that the price of a Big Mac has risen 21% since 2019.

“Inflationary pressures have affected all sectors of the economy, including ours,” Erlinger said.

To lure customers back, fast-food chains have begun offering a flurry of deals and discounts, as exemplified by McDonald’s $5 value meal — which includes a McDouble cheeseburger or a McChicken sandwich, an order of four of Chicken McNuggets, a small order of fries and a small soft drink. All of the items on McDonald’s $5 meal deal were on its dollar menu, which no longer exists.

A Subway spokesperson told MarketWatch that these are indeed “challenging times for the entire restaurant industry. Our approach to value is thoughtful and strategic, data-driven to help balance consumer needs while protecting franchisee profits.”

In some ways, Subway was a victim of its own success with the triumph of the $5-a-foot deal and the jingles that go with it, industry experts say. It cemented the chain’s image as a low-cost leader and arguably left them with less room to raise prices without facing consumer backlash.

Plus, as Arlene Spiegel, a hospitality consultant in New York, argues, consumers can find high-end sandwich options at those higher price points, so why should they opt for a sub-chain that might cost up to $15 ?

“Not when you can go to an Italian deli and get a fresh-sliced ​​prosciutto sandwich,” Spiegel said.

Adding to Subway’s woes: One of its other major marketing campaigns touted the low-calorie aspect of some of its offerings and highlighted Jared Fogle, who reportedly lost 245 pounds on a diet of Subway sandwiches. But Fogle later pleaded guilty in a child sex abuse case that damaged Subway’s brand, experts say.

“There are still people who won’t go because of the Jared fiasco,” said Mark Kalinowski, a veteran fast-food industry analyst.

Add it all up, and Kalinowski said it shouldn’t come as a surprise that Subway saw a sizeable drop in its U.S. store count, from 27,129 in 2015 to 20,133 last year. Still, Kalinowski remains relatively bullish on Subway, even with the increasing competition it faces from other sandwich chains.

The bottom line: Many people still like their subway steps, no matter how much it costs, he said: “The subway will be around for decades to come.”

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