THE BOTTOM LINE
PHOTO: NICO HEINS
SUBWAY AND THE SHADOW OF THE $5 FOOTLONG THE BOTTOM LINE: THE MARKETING CAMPAIGN WAS ONE OF THE MOST SUCCESSFUL IN RESTAURANT INDUSTRY HISTORY. BUT THAT PROMOTION IS STUCK IN CONSUMERS’ MEMORY, MAKING ITS OFFERS MORE DIFFICULT.
BY JONATHAN MAZE
O ne of the most successful marketing campaigns in restaurant industry history was Subway’s $5 Footlong. That campaign carried the sandwich giant through the Great Recession, when consumers were cutting back dramatically on dining. The campaign was so successful that it helped speed the decline of rival Quiznos, whose franchisees could hardly afford such discounts. And it established the $5 price point as a key driver of value traf- fic to restaurants. It was too successful, in fact. Subway and its franchisees have struggled to emerge from the shadow of its $5 Foot- long promotion in the more than a decade since it last ran. Consumers remember that $5 price point when they visit the chain’s restaurants and see some subs priced at $14. They remember it whenever the company tries offering a discount on that sub. And they remember it almost any time news comes out that Subway is struggling. To wit: Last week news emerged that Subway was facing sales challenges. Invariably, people bring up the $5 Foot- long promotion that ran for years.
14
RESTAURANT BUSINESS OCTOBER 2024
Powered by FlippingBook