Fast-Food Star of Recession: $5 Footlong

Subway is rewarded for listening to franchisee
By John Johnson,  Newser Staff
Posted Nov 7, 2009 11:34 AM CST
Fast-Food Star of Recession: $5 Footlong
A Subway restaurant in Bowling Green Ohio.   (Getty Images)

BusinessWeek has found what it calls the "fast-food success story of the recession"—the $5 footlong sandwich from Subway. The simple idea began with a franchisee who noticed slow sales on weekends and decided to knock down prices to bring in customers. After sales went through the roof, he pitched it to a skeptical headquarters, which eventually bought in. The helpful kicker: Because of extra customer volume, each sandwich is still profitable, unlilke most sales gimmicks of this kind.

"There are only a few times when a chain has been able to scramble up the whole industry, and this is one of them," says a restaurant consultant. "It's huge." So huge, writes Matthew Boyle, that "the $3.8 billion in sales generated nationwide by the $5 footlong alone placed it among the top 10 fast-food brands in the US." It also helped the chain increase sales 17% last year in tough industry times. (Read more Subway stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.