Home Business Subway pulls controversial $10-for-2 deal amid franchisee revolt

Subway pulls controversial $10-for-2 deal amid franchisee revolt

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Subway’s grand plan to bring back the $5 footlong has fallen flat, The Post has learned.

America’s biggest restaurant chain on Tuesday told its franchisees that it would be ending its controversial offer to sell any two subs for $10 because the deal wasn’t increasing profits for mom-and-pop owners, who revolted against it from the start.

“While the summer promotion saw well above average consumer awareness, largely driven by our highest TV media weights since 2015, and the number of consumers taking advantage of the offer exceeded our expectations, we did not see enough incremental traffic to grow franchisee profits,” Subway said in the memo, a copy of which was seen by The Post.

Starting July 2, the $10-for-2 deal will only be available for customers who order through Subway’s app, the memo said.

Subway kicked off the promotion on June 16 by offering to sell any two footlong subs for $10, including its Big Philly Cheesesteaks, which normally cost $8.95. The deal, which was ushered in with splashy ads starring “One Call Away” singer Charlie Puth, was expected to last until Aug. 31.

But it was strongly opposed by many franchisees, who also declined to participate. They argued that while the $5 footlong promotion worked wonders to draw customers back in 2008, it was uneconomical given the rise in labor and food costs.

“So doing the two for $10, we made 52 more sandwiches for $58 less. Simple math says this is a bad idea,” a Florida franchisee recently wrote on the Subway franchisee blog.

Subway’s withdrawal is a black eye for CEO John Chidsey, who went all out to push the promotion as the coronavirus crushed sales, including by tapping Puth to participate in the company’s new ad campaign.

“It’s back, it’s back .. the good old days are back,” Puth sings in the ad, which Subway reps touted as the company’s biggest campaign since the popularity of Subway spokesman Jared Fogle, who was arrested for kiddie porn in 2015.

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