New Subway promo poses challenge for local franchisees
When a fast food chain like Subway announces a corporate promotion, like the current $4.99 special on certain foot-long sandwiches, it can be a bargain for customers and an effective way for a company with declining revenues to boost sales.
But such promotions can also be problematic for franchisees, who have no choice but to go along with deals that can end up taking a huge bite out of their bottom line.
So concerned, in fact, are some Subway franchisees about the new $4.99 promo, which went into effect Jan. 1, nearly 900 of the company’s 10,000 franchisees signed a petition urging the company to withdraw the deal.
Baton Rouge franchisee Andy Kimbrell, who owns two Subway restaurants in the area, was not among them and he supports the parent company’s marketing efforts. But he concedes it’s tough to make the numbers work when he’s forced to sell certain sandwiches at such drastically reduced prices.