How Subway Subscriptions Can Impact The Food Industry
- On August 24, 2022, Subway announced its Footlong Pass, a subscription service that offers footlongs 50% off every day in September.
- The subscription program had 10,000 passes available to Subway MyWay Rewards Members, which sold out a couple of hours after its release.
- Subway is not the first fast food chain to use a subscription service. However, depending on Subway’s success, its subscription service could lead to a large-scale version.
The food industry is slowly evolving, with the sandwich chain Subway beginning to offer a limited-time sandwich subscription to their customers for September. On August 24, 2022, the fast food company announced the $15 Footlong Pass test trial, a subscription program for Subway’s MyWay Rewards Program members.
Only 10,000 passes were created for the month of September, and they sold out on the Subway website the same day they were available to the public. Depending on the success of Subway’s subscription-based program, it could cause the fast food chain to widen the subscription service for more consumers.
How Subway’s Subscription Works
For every day in September, Subway MyWay Rewards Members who signed up for the Subway Footlong Pass are eligible to receive a 50% off a footlong when ordered through the Subway app or online with daily digital codes. Unfortunately, those who currently wish to purchase a Footlong Pass cannot since all passes have been sold out.
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Pros of Subway’s Subscription Program
One pro of Subway’s subscription service is that the food company can see how willing people are to purchase a monthly pass which will give them a discount on their food. They may scale their subscription program if they find that most of their consumers are willing to pay extra for a subscription that deducts their food price.
For example, earlier this year, Taco Bell announced its monthly taco subscription, similar to Subway’s. As a result of its popularity, it caused Taco Bell to make the subscription feature a permanent part of its business model; which could also happen to Subway, depending on consumer feedback, profitability, and engagement.
Recommended Read: Save Money by Canceling Unused Subscriptions
Cons of Subway’s Subscription Program
The main con of Subway’s subscription program is the possibility of failure. Subway is not the first fast food chain that decided to test trial a subscription program. 45% of Americans have experimented with food subscription services such as Hello Fresh and Blue Apron, but there is speculation that fast food chains will not have the same appeal as they do not provide healthy food options.
Furthermore, restaurant chain Olive Garden had its own subscription model, called the “Never Ending Pasta Pass.” This pass allowed pass holders to receive never-ending pasta, salads, and breadsticks. Unfortunately, Olive Garden eliminated the subscription program due to profitability concerns. A lack of profitability is a possible risk that could impact Subway’s subscription program's success, potentially leading to its discontinuation.
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The Money Wrap-Up
Subscription-based programs have become relatively widespread, mainly within streaming service companies such as Netflix and Disney+. Since streaming services have succeeded with their subscription-based model, fast food chains are experimenting with a similar plan. Depending on Subway’s success with its subscription service, it can lead them to create a large-scale subscription program for its members.
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