Subway Enters Value Meal Competition with New Footlong Pricing

Subway has announced a significant change to the pricing of its popular footlong sandwiches, introducing a new price point of $6.99 effective August 26. This represents a substantial reduction from previous prices, which had soared as high as $14 in certain markets.

This move is part of Subway’s strategy to join the value menu competition as fast-food chains strive to regain customers who have expressed frustration over rising food prices. The promotion is exclusive to orders placed via Subway’s app or website using the code “699FL” and will be available until September 8.

Subway offers a diverse menu with 22 different sandwich options, in addition to the ability for customers to create their own custom subs. The price adjustment comes in response to a broader trend among fast-food establishments that have recently launched summer promotions aimed at attracting customers who are increasingly concerned about the affordability of dining out.

In making this announcement, Subway acknowledged the financial pressures many Americans are currently facing. Doug Fry, president of Subway North America, stated that modern diners are feeling stretched in their budgets, often forced to compromise on quality, variety, or flavor in search of affordable meal options.

Recent trends indicate that more consumers are opting to prepare meals at home, driven by sky-high restaurant prices. Since January 2020, the cost of dining out has surged by 28%, which is significantly higher than the overall inflation rate of 21% during the same timeframe, according to government data.

This rising cost of eating out is compelling many chains to reduce their prices to entice diners back into their establishments. For instance, McDonald’s recently introduced a limited-time $5 value meal, responding to its second-quarter sales slump — the first decline since 2020. Company management pointed to decreased foot traffic among low-income consumers looking to tighten their food spending.

In addition to fast food outlets, other retailers such as Target have also begun to lower prices on various products to attract budget-conscious shoppers. This strategic pricing has proven beneficial for Target, which reported an increase in comparable sales for the first time in a year in the latest quarter.

As the economy remains a pressing concern for many Americans, Subway’s pricing changes and competitors’ similar strategies reflect a broader effort by food retailers to adapt to shifting consumer behaviors in today’s economic landscape.