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Subway $5 Footlong Revolt Staged by Franchisees

Subway $5 Footlong Revolt Staged by Franchisees
Subway is backing away from its $5 footlong sandwich promotion. (Settawat Udom/Dreamstime.com)

By    |   Tuesday, 11 September 2018 09:35 AM

Subway revealed this week it would back away from its $5 footlong sandwich promotion following a revolt staged by franchisees.

Trevor Haynes, CEO of the Milford, Connecticut, company, told USA Today that franchisees would no longer be required to sell the famous sub as of this month.

The announcement comes after 400 irate franchisees signed a petition opposing the $4.99 footlong promotion, which was brought back earlier this year, the New York Post reported.

The chain issued a memo last November revealing plans to reintroduce the sandwich deal, sparking backlash from franchise owners who felt the discount would cut into their already waning profits.

In a letter to Subway, petitioners said the "national promotional focus over the past five years … has decimated [us] and left many franchisees unprofitable and even insolvent."

Sales over the last year have dramatically declined at Subway stores across the U.S., Business Insider reported.

The chain has been struggling over recent years, with its U.S. store count dropping by more than 900 in 2017.

Earlier this year, Subway announced intentions to close an additional 500 U.S. stores as it expands internationally.

The sandwich shop, founded more than 50 years ago, is struggling to boost sales in the U.S. as newer, more modern chains emerge.

In response to the situation, Haynes told USA Today that franchisees could now decide whether to keep the promotion or discard it.

"How do we help our franchises with more of a regional value message, so they're able to (have) a value proposition that fits with their economic model," he said. "If you look at California, there's a very different cost of business than in Arkansas."

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Subway revealed this week it would back away from its $5 footlong sandwich promotion following a revolt staged by franchisees.
subway, 5, footlong, franchisee
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2018-35-11
Tuesday, 11 September 2018 09:35 AM
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