Subway Expands Loyalty Program

bloomberg.com/news/articles/2018-02-22/subway-turns-to-2-off-loyalty-program-to-reverse-sales-slump
>Subway Restaurants, facing one of the biggest sales slumps in its five-decade history, is looking to win back customers with a new incentive: $2 discounts through a revamped loyalty program. The sandwich chain will let diners use their loyalty rewards on any menu items, lifting restrictions under the current program. The new system, which will expand to 28,500 U.S. and Canadian locations next month, will offer frequent customers freebies such as cookies and chips and let them use their balance via a mobile app and other channels. With the revamp, customers can earn $4, roughly enough for a 6-inch sub and drink, after spending $100. Along the way, they will also receive “surprise” rewards such as cookies, chips and possibly sandwiches, Ganelli said. Before, they needed to spend $50 to get a 6-inch sandwich.

>The Milford, Connecticut-based chain is fighting to reverse its U.S. decline: Sales fell 4 percent last year after a 1.7 percent drop in 2016, according to industry researcher Technomic. That’s the worst performance in at least a decade. The brand’s cachet has worn off as rivals entice customers with sleek store designs and expanded healthy options. Other competitors have deepened discounts and expanded delivery.

Will it save them?

Other urls found in this thread:

businessinsider.com/subway-5-footlong-returns-2018-1
youtube.com/watch?v=xd3Trr8Xrdc
npr.org/sections/thetwo-way/2017/03/01/517920680/dna-tests-find-subway-chicken-only-50-percent-meat-canadian-media-reports
subway.com/en-us/menunutrition/nutrition/realchicken
twitter.com/SFWRedditVideos

so their master plan is to take a rewards program that got you a 6 inch sub after spending $50
and now making it so you need to spend $100
and that's going to win customers back?

lemme tell you, we just had a jersey mikes open up last week and holy fug, I'm not surprised subway is going out of business when stuff like that is their competition
they have really achieved the pinnacle of the art form when it comes to cheese steaks
that big kahuna was a perspective changing experience on how good a fast food item can be

>that big kahuna was a perspective changing experience on how good a fast food item can be
I'm no fan of Subway but holy shit could you shill any harder?

Yeah, fuck him for wanting to share his experience

are you trying to deny it's a great sandwich?
I've been getting regular sized ones all week because I have a bunch of grand opening coupons

is this fallout because of pedo Jarrod?

I don't eat fast food

Why are you so weird, user?

lets play a little devils nutsack here for a moment

do you ever get a sandwich from a deli, where they slice the meat right there in front of you and build your sandwich out of fresh ingredients?

if yes; if that same exact process took place in a chain rather than a single family operated deli would you not eat there?

if you would not eat there; why?
more specifically. Why does a chain bother you when they often have a better product than family operated places?

Doubtful. I think most people have forgotten that incidence and many don't even know about it.

They need to try advertising outside of cable TV and improving their terrible bread and soggy vegetables. I'll pay an extra 2 dollars for premium sandwich with one more slice of cheese and some bread and vegetables that don't suck. Make 4 good breads instead of 8 crappy ones.

I know that my local deli serves actual meat.

doubtful most delis are run by jews.

Yes, as opposed to the cellulose/fibre mixture sold at subway

>is this fallout because of pedo Jarrod?

My mom is a multi-franchise owner.

What killed subway was that their "5 dollar footlong" jingle was so successful, that people just associated subway with $5 and refused to pay anything more for the subs. And at $5, we were barely breaking even. That hurt the franchisees badly.

And now, when we try to charge $7 or $8 for the same sandwich, customers balk and leave. They think "for $7, I can get superior Togos or Jersey Mikes or etc, and not bottom tier subway."

Subway is a great case study on how a major advertising campaign and discount can hurt market share in the long run and create warped customer expectations.

Subway should probably stop using the ass end of meats and not shit tier bread.

they still have 5 dollar footlongs at my local franchise.

That and the fact that news outlets revealed that no matter what meat you order at subway, it's made of turkey.

And Jared didn't help... lol

Cry more.

>they still have 5 dollar footlongs at my local franchise.

Probably outside of cali. Over here, $5 footlongs are a loss leader. It's not great when your main product is your loss leader. lol

How am I crying? Subway food sucks and they deserve to go under.

Or does me explaining some basic facts trigger you somehow?

>he doesn't have local delis everywhere

>it costs more than 5 bucks to make a deli sandwich
they were making profit user.

And your mother is a whore.

>go to deli
>order a breakfast sandwich and coffee
>hand me an empty cup and points at a coffee pot over to the side
motherfucker if I wanted to make my own coffee I would have done it at home!

How to save Subway:

1. Stop selling franchises to poo in the loo Indians.
2. Actually stock fresh produce and meat that isn't turkey by-product
3. you can't do #2 because you've locked yourself into into a $5 price with your stupid $5 footlong program

I agree with this. Something funny I've found is that while they offer a mixed salad, it's cheaper to just get a standard veggie sandwich and cram it full as much of the same plant-based toppings as you want then eat it with a fork (treating it like you got 2 bread-sticks on the side).

Maybe they should just bring these back.

> labor is free
> utilities are free
> rent is cheap as fuck in California
> franchisees don't need to pay their franchisors

Being such a savvy business man, you should start your own restaurant.

remember jared?

>only deli near me is vegan

>Maybe they should just bring these back.

I think the only way they can save Subway is to kill off about 1/3 of the franchises. We have 3 subways within 2 minutes of my office and none of them are ever busy.

>vegan deli

No, it’s because you can get a better product for a similar price anywhere else

No, you dolt. it' was inflation.
The 5 dollar footlong program was 10 years ago; it would cut into the margins if they did it now.
They were slim margins but the margins were there.

Except you actually don't.

How about... how about they get meat that actually tastes good?

>The 5 dollar footlong program was 10 years ago

Might want to get your facts straight first...

> Subway $5 footlong returns, angering franchisees - 1/2/2018

businessinsider.com/subway-5-footlong-returns-2018-1

It's no better or worse than any other shit chain deli.

It started in 2009 you dumb fuck.

> it would cut into the margins if they did it now.

You're just triggered because OP exposed your ignorance. lol

Read the fucking article. It is a loss leader in some locations (ie cali) , but isn't in others.
Basically shitty state minimum wage laws are making the sandwiches too expensive in shithole 15/hr states.

>With the revamp, customers can earn $4, roughly enough for a 6-inch sub and drink, after spending $100. Along the way, they will also receive “surprise” rewards such as cookies, chips and possibly sandwiches, Ganelli said. Before, they needed to spend $50 to get a 6-inch sandwich.

Wait, I'm really confused. So they're making it worse by making you need to spend twice as much to get less money?

I too doubt that most delis are run by jews.

But it is worse, and their cookies taste of ham.

I've also noticed this. Not sure if they're clueless or shameless about oversaturating their markets. They are one of the less expensive franchises out there, though, so I wouldn't put it past them to cannibalize some of their footprint if it meant total domination.

if it isn't run by a jew then you're getting a shit corned beef.

>> it would cut into the margins if they did it now.
literally says that in the article.

Because Subway looks and tastes like filth, and costs far more than it's worth.

He was describing Jersey Mike's.

>customers can earn $4, roughly enough for a 6-inch sub and drink, after spending $100
Lol fuck off

>you have to buy 150 subs to get one sub for """"free"""" including sales tax

Not how business works young one

>calls others young
>posts cartoons when trying to make a point.

if taking care of all those factors is so stressful, why doesn't he simply swap with the guy in the first pic?

>Political comic
Sorry is the text at the bottom too long to read or too hard to comprehend?

I worked at Burger King HQ and this was a big issue with the Whopper Wednesday. When your business revolves around how cheap your product is, people will see it as cheap, even if they are selling at cost or at a loss.

It also doesn't help that in Subways case, without the sale, you can get a better sub elsewhere for the same price. Subway needs to have something unique to standout.

>150 subs cost $100 dollars
>a sub at subway costs 67 cents
brainlet_wojak.jfif

Nice kike propaganda, shlomo.

Mfw your selling food people can make at home easy and you complain about sales
XD

Oh yeah, thought it was 100 subs not $. Spending $150 for enough to cover one """""free""""" sub with sales tax is still goofy tho.

Some people feel the risk is worth making it big. Most of us don't, the vast majority of restaurants fail and we'd rather take a sure bet.

Subway is fucking garbage, especially in SoCal, where I can take the $8 I would spend on a footlong for an actual hot meal

I had a breakfast sandwich with eggs and ham from Subway and it gave me a headache. The eggs were precooked, frozen and thawed. It tasted and felt like play dough

>were
There's this thing called inflation, user. 5 dollars when it started in 08 is equivalent to 5.68 today. And that's assuming that not a single cost has increased in the meantime too.

>And that's assuming that not a single cost has increased in the meantime too.
Minimum wage in cali has increased ~40% since then.

You wish, airhead

This goes hand in hand with this post, but one other problem Subway has is that the franchise owners have no say in advertising and Subway corporate releases other brain-dead "deals" like National Sandwich Day. I used to manage one and we were hemorrhaging money by basically giving away free food. We ran out of bread constantly, we couldn't physically bake enough to meet the demand even though I made more than twice what we actually needed before lunch. The franchise owners can opt out of that nonsense but then you piss off hundreds and hundreds of potential future customers. But on the other hand most of the people who take advantage of those deals only come in when they have them. The food costs are just too high (meat, cheese and olives being astronomical at times) and as you said most people just aren't willing to pay the same price for the bottom-tier subs compared to Jimmy Johns, Firehouse Subs, Jersey Mike's, etc . It's a lose-lose for the owner.

>I made more than twice what we actually needed
Meant to say I made more than twice what we usually do. They also over-expanded and you can't throw a rock without hitting a fucking Subway which is another problem they have.

its the same kind of shit we see in many businesses
it's a real suckers move to become a franchisee most of the time, corporate makes their money off of you with no risk to themselves, they don't care if you are successful or not

I work at I love kickboxing and its the same shit at the studio. Corporate raised the prices from $125 a month to $165 a month this year which priced us way out of the market
went from 2-5 sign ups a day to we are lucky to see 2 in a week since the year began
corporate doesn't give a fuck though, they make 100% of the money people pay for groupons to come take class for the first time
then we pay out of pocket to give them boxing gloves for "free" with their introductory class
if they don't sign up with us after their groupon class we gained nothing from them coming to see us
we essentially lose $20 every time someone new walks through the door and doesn't sign up while corporate made $50

this type of shit is probably similar to how subway is handling it which is why they are all going belly up
it's not a sustainable way to run a business

>Subway is fucking garbage
You could have just stopped right there

My local Subway gives you two cookies when you order them, still, it's better to eat a sub either at Firehouse Subs or El Meson Sandwiches. Subway's oven "roasted" chicken taste like watery cardboard, no idea why it has become so popular.

I work at Subway and feel bad for people that eat there

There are a lot more sandwich chains now and they're all leagues better.

>The food costs are just too high (meat, cheese and olives being astronomical at times) and as you said most people just aren't willing to pay the same price for the bottom-tier subs compared to Jimmy Johns, Firehouse Subs, Jersey Mike's, etc . It's a lose-lose for the owner.
I'd also say that they're hurt by the advent of upscale "grocerants" that have a good deli and bakery.

>Subway's oven "roasted" chicken taste like watery cardboard, no idea why it has become so popular.
Yeah...about that:
youtube.com/watch?v=xd3Trr8Xrdc
npr.org/sections/thetwo-way/2017/03/01/517920680/dna-tests-find-subway-chicken-only-50-percent-meat-canadian-media-reports
>The tests were conducted by a DNA researcher at Trent University's Wildlife Forensic DNA Laboratory, for a CBC Marketplace episode dedicated to testing fast-food chicken dishes, and have not been independently confirmed.

>the show found that dishes from McDonald's, Wendy's, A&W and Tim Horton's restaurants in Canada came in at 80 percent and 90 percent chicken DNA. (The meat was tested without any sauce or condiment, but seasoning and marinating would keep any chicken down from a pure 100 percent result, the CBC notes.)

>But Subway's dishes were an outlier. "The oven roasted chicken scored 53.6 per cent chicken DNA, and the chicken strips were found to have just 42.8 per cent chicken DNA," the CBC reports. "The majority of the remaining DNA? Soy."

Subway actually issued their own press release in response with their own sponsored lab results:
subway.com/en-us/menunutrition/nutrition/realchicken

You can kiss my ass

Northeast U.S. fag reporting in, we have wawa, sheetz and many other local franchises that blow subway out of the water in every way possible, they have no chance around here.
I havent eaten at a subway ever. My family tried to go to one in PA while on a road trip because it was central pa and their was nothing around. When my family entered there was an indian man with a large mustache mopping the floor with the foulest smelling water I have ever smelled in my entire life. My family immediatly started gagging and we ran out. The old indian manager chased after us and promised a 50% discount but we jumped in our vehicle and my dad told him to go fuck himself.

The rotisserie chicken isn't that bad. It's just about the only thing I'll order from there on the very rare occasion I get Subway even though there's one on my block.

i always get a hardy chuckle out of "subway" fans.

Its like being a Mcdonalds fan.

Your basic bitch tier.

Pub subs are 10x better than anything at Shitway.

cheaper to buy your own stuff and spend 2 minutes making a sandwich

>people are arguing that some of the lowest tier meat spear headed by one of the lowest quality food restaurants wasn't profitable enough to exist.

When your bread is made with petro filler.
When your meat is "All Turkey".

You don't turn around and say we want 30-40% more for our death sandwhich.

Because your competitors sell higher quality products then you.

And people can get more bang for there buck at tacobell and mcdonalds...

I'm sorry your entire business model is shit. All your customers probable started dieing off and now all millennials want to eat are avocado toast and tacos.

Can someone explain to me how a 6" sandwich can cost subway $5 to make? The bread probably costs a whopping 12 cents to make, lettuce is cheap, that processed cheese is inexpensive, the meat is kinda low quality, refrigeration probably costs the most out of everything in the sandwich. Its always a mexican or indian making it for minimum wage.

Seriously, if I make a similar sandwich at home, its $2

I mean, it really isn't even a matter of cost.

If you really like submarine sandwiches you can buy higher quality meats and cheeses sliced by the pound at your grocer deli and then make them ahead for 1-2 weeks' worth of lunch meals so you end up saving money per sandwich serving. You could even prep some poolish/biga boules over the weekend and have freshly home baked bread to slice off daily during the week (flour and instant yeast are literally pennies/oz) since most of the "work" is just proofing that can be done overnight ahead and there are many no-knead recipes online.

I know there is conveyance at play here, but overall what are mostly plain cold-cuts (not even toasted) just doesn't seem that specialized to me. If there were exotic topping options or they were barbecue sandwiches it'd be a different story.

From what I understand most of any franchise's costs stem from fixed costs like utilities, insurance, and most of all rent.

No. It's because their sammiches suck

do you happen to be subway's ceo fred deluca

>customers can earn $4, roughly enough for a 6-inch sub and drink, after spending $100
Wow such loyalty

>subway.com/en-us/menunutrition/nutrition/realchicken
>Our Oven Roasted Chicken and chicken strips are made from 100 percent all white meat chicken. The chicken is mixed with spices, seasoning and marinade then cooked and seared to perfection. When we add spices and seasoning to the marinade, we also add – in some regions – dried soy protein, like a spice. When the chicken and marinade are all mixed together, our chicken contains 1% or less of soy protein.

>After the chicken is marinated and cooked, a finished chicken patty or strip still contains a small percentage of the marinade ingredients, which help keeps the chicken moist and flavorful.

Buy my sandwiches

>is this fallout because of pedo Jarrod?
No, nobody cared about that. It's not like he was going around to each Subway location and sticking flash drives with underage porn in your sandwiches. It's this:
>Subway is a great case study on how a major advertising campaign and discount can hurt market share in the long run and create warped customer expectations.
Yeah, whoever came up with that jingle / gimmick should've realized even modest amounts of inflation would eventually make any absolute dollar amount not be sustainable indefinitely.

So what's the other 50% of the chicken? Textured Soy Protein?

I mean I'm not surprised, everything at subway is disappointing unless you're dumping a small fortune on a steak and cheese. The meatball sub is good but I can't trust farts after I eat one for a while

why should I feel bad for any asshat that becomes a franchisee of a fucking sandwich shop
like, go buy a slicer and cold cuts
there is literally nothing special about any sandwich chain, these people don't make money because they don't have a brain.

Maybe you should improve your product nerds.

>So what's the other 50% of the chicken?
How did you manage to read that post without reading it?
>But Subway's dishes were an outlier. "The oven roasted chicken scored 53.6 per cent chicken DNA, and the chicken strips were found to have just 42.8 per cent chicken DNA," the CBC reports. "The majority of the remaining DNA? Soy."
>The majority of the remaining DNA? Soy.
>Soy

>there is literally nothing special about any sandwich chain
I'm pretty sure you will get more business if your sandwich store belongs to a well known franchise vs. if you just stick a sign that says "Craig's Franchise Unaffiliated Sandwich Shop" on a random building.
Not that I would do either of those two things personally, but it's ridiculous to suggest there's no benefit to using an already well known brand name.

Dear Subway: YOUR BREAD IS SHIT

Plz pay me a $30K consultancy fee.

that's kinda sad.

Btw wawa is based, I tried it for the first time when I went back to Philly last summer

Maybe in rural areas or deep in suburbia, but in any decently sized city people are going to prefer a neighborhood deli to a chain sandwich shop.

this goes back to the $5 foot long and subway being to incompetent and greedy to survive vs natural competition.

The only reason people eat at shitty franchise resturants is for promos and deals, fast food.

so if their price is almost at the same as a local place theres no point anymore too them.

>Maybe in rural areas or deep in suburbia, but in any decently sized city people are going to prefer a neighborhood deli to a chain sandwich shop.
I've never lived in a rural area and I know that's not true for cities in New Jersey, Massachusetts, Arizona (Tempe / Phoenix), Texas (Dallas, Fort Worth, Houston, Austin).
At absolute best to salvage your claim as partially true I could agree that there exist specific outlier local shops that are exceptions to the rule and do well for themselves, but if you had to bet your life savings on which of two randomly selected stores, one an instance of a major franchise and the other a mom and pop shop, was making more money in a given year bull fucking shit would you put your money on the random mom and pop shop.

stop being a cunt, I did not say there was no benefit, I said they are all nothing special.
Because its just fucking sandwiches.
If you have the kind of cash to pay franchise fees, you can go your own way and put that obscene money towards your own sandwich shop gimmicks, and not have to bend to the will of whatever's board of directors.
PS, I know plenty of very successful, independent sub shops. The key is to have a good product, weird.