Subway $ 5 footlong promotion is a promotion by Subway fast food restaurant chain, launched in the United States in 2008 by offering a submarine footlong (30 cm) sandwich for US $ 5, equivalent to $ 5.68 in 2017 Coinciding with the Great Recession, the promotion is very successful for the chain, spurring competitors to take similar steps to cut prices to attract customers. Promotion also helps start an ongoing trend from a rounded price point on consumer goods.
In 2014, prices increase by 20% to $ 6, and then in 2017, the price is raised to $ 7. On January 1, 2018, $ 5 promotions returned with a five-dollar walk of $ 4.99 from five subs, on location who participated.
Video Subway $5 footlong promotion
Histori
In 2004, Stuart Frankel, the owner of two Subway franchises at Jackson Memorial Hospital in Miami, Florida, noticed that sales were slower in his shop over the weekend. To help boost sales, Frankel decided to lower the price on a footlong sheet for the weekend alone. A fan of round numbers, Frankel decides to make every sub $ 5 footlong each. At that time, Subway has various prices for its submarines. After making this change, sales begin to increase.
Two local franchises of Palm Beach/Broward County noticed and started implementing $ 5 footlongs in their 50 stores, also paying attention to increased sales. Around the same time, the housing bubble of the United States is about to explode, which has swept through Florida. In contrast to many such promotions, Subway franchises do not see a decrease in profit margins, nor do they sell each sub on a loss.
Meanwhile, Subway executives at corporate headquarters in Milford, Connecticut, are getting tired of old company ads featuring Jared Fogle and want something to compete with valuable menus at McDonald's, Burger King, Wendy, and Taco Bell. Although some skeptical stores offer $ 5 footlongs, stores in Chicago and Washington, D.C., follow the Miami store footprint and see instant sales rise. Some stores in the blue-collar neighborhood (especially East Cleveland, Ohio, locations) are seen offering higher discounts at the peak of the promotion, like a 5 dollar combo (Sub plus chips/cookies and drinks). Direct sales are up for the company. To go with the promotion will be a "$ 5 footlong song," created by Jimmy Harned from the New York-based Tonefarm company, intentionally designed to be campy and has spawned his own life, including singing contests and as an internet meme.
The $ 4.99 footlong menu launches in 2018 with five subs, which is also featured in the previous $ 5 footlong campaign.
Maps Subway $5 footlong promotion
Promotions
There are five $ 4.99 feet available on a regular basis in the United States. Markets like Alaska and Hawaii may charge more for this subs value.
United States
After the termination of the previous $ 5 footlong promotion in May 2008, Subway created a permanent menu with five footlong subs available at $ 5 per day (except for Alaska) The company also experimented with $ 5 meals, which included sub six inches with drinks and sides. The program remains optionally franchised. In 2009 alone, various promotions along $ 5 generated $ 3.5 billion in sales for Subway.
Throughout every February since 2008, plus September in 2013, Subway sells all 21 regular footlong for $ 5 each. Subs in the Premium and Supreme categories are more expensive. In September 2014, most of the vessels were raised to $ 5.25 or $ 5.95 and only two footlong remained regular at $ 5. At Christmas, all submarines are now worth $ 5.50, even though the $ 5.95 price also drops to $ 5.50. By 2017 prices go up again, making sandwiches an average of $ 7.50.
Canada
Subway launched a $ 5 footlong promotion in the province of Ontario on January 11, 2010. It featured the same value-added submarine sandwich found on the value menu in the United States, although Canada also makes them available as $ 5 salad. On April 20, 2010, the campaign expanded to Quebec and was called "12 pouces, 5 $" (12 inches, 5 dollars) in French. The deal was made available across Canada on December 30, 2011. Outside QuÃÆ' Â © bec, the promotion was discontinued in Q4 2012 and is now charged at least $ 5.25 per footlong sub, despite a massive $ 5 footlong campaign in the previous fiscal quarter. At the end of the year, salads in those areas also face price increases, leaving only eggs and cheeses for $ 5.
For most of Q3 2013, the Ontario shop that sells $ 5.25 footlongs is now charged $ 5.50 for them. However, however, continue the $ 5 footlong promotion to this day. The $ 5 price point is returned on September 16, 2013 across Canada. This coincided with the promotion of "SUBtember" the United States and the launch of new sub falafel in some Canadian markets. This continues throughout October 2013, after which footlongs face price increases: $ 5.50 at the moment for most subs, and $ 5.95 in September 2014. In all cases, prices are set by the franchisee and thus may vary per location.
International
There are no international five-foot promotions, except for trials in some Commonwealth countries.
The UK now has its own value menu range where sub 6 inches (from a limited menu) and drinks cost Ã, Â £ 3 is called "Subway Lunch" (just under $ 5, tax inc) or footlong as lunch (again, from limited menu) will also be charged only Ã, Â £ 5.
In Australian stores, similar campaigns run for the cheapest price at $ 7 instead of $ 5. This is the same price as in New Zealand stores.
In India, Subway runs a similar value campaign called 'Sub of the Day'. Each day of the week has a different 'Sub of the Day' and a 6 inch sandwich will be sold for INR 80 (US $ 1.20) that day.
More
Despite removing the $ 5 price point, Subway has offered another offer to attract customers. As part of a regular menu item, the company launched the Simple $ 6 Menu in 2014, offering a six-inch flyer with chips and drinks for $ 6.
To celebrate an unofficial National Sandwich Day holiday on November 3, 2015, Subway offers a Buy One sandwich, Give One sandwich free promotion. Despite its success, many Subway locations ran out of bread due to heavy demand.
On February 4, 2016, Subway relaunched Regular Regular Footlong promotions, but for $ 6 instead of $ 5, which caused a lot of people in social media to complain about price increases. Subway responses are associated with inflation as a factor. Subway was also reportedly promising a franchise that it would be a "once" promotion for trying to relocate too much on price promotions to drive traffic to stores.
Despite a new promotion for 2018 for 5 footlongs for $ 4.99, some Subways decided not to do it, including one in Seattle due to high costs and possibly bankrupt another restaurant. There was also a petition not to run the promo as well, claiming the offer appeared to be non-functioning and "restaurant traffic, units, sales, and profitability continue to slide".
Effects on competition
Some competitors eventually follow Subway's success with $ 5 footlongs, including Pizza Hut, Arby's, and KFC, which introduce similar rounded price points. Many consumer goods outside the restaurant industry have also adopted rounded price points as well.
While Subway allows "$ 5 footlongs" to keep the franchise-optional, Burger King takes the opposite route, requiring all locations in 2009, both franchises and owned-and-operated companies, to sell double cheeseburgers for $ 1. over 80% of their franchises sued the parent chain, claiming that they lost money on goods sold for $ 1, and that Burger King can not dictate the maximum price. Although Burger King then won the suit, he raised the price from a double cheeseburger to $ 1.19 in response to the lawsuit.
See also
- Value menu
References
Source of the article : Wikipedia
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