Inflation Kills Subway’s $5 Footlong
Subway’s “five…five dollar…five dollar footlong” song seems to be outdated—the footlong is no longer five dollars. Yes, it’s time to erase that jingle from our memory for good.
Citing U.S. inflation as the reason, Subway is hiking the price of its iconic footlong subs by $1.00. So, that $5.00 footlong will now be costing you $6.00.
The Subway $5 footlong deal was first introduced back in 2007 and in less than a decade, it became one of the most popular fast food deals. Naturally, Subway customers are not happy with this move. The price hike is receiving a backlash on Twitter after Subway made the announcement on its social media page. Responding to one of its customers’ tweets, Subway explained the reason for the price hike.
BREAKING NEWS: Starting February 4th ALL of your favorite classic footlongs are $6. pic.twitter.com/OoaDYPII1u
— SUBWAY® (@SUBWAY) February 2, 2016
The move shouldn’t come as a surprise to consumers. The dollar today is not worth the same as the dollar of 2007. If we were to account for inflation, that $5.00 footlong should be worth $5.72 today. So the $6.00 price tag might be, to a certain extent, justified.
Privately-owned Subway uses the concept of “healthy fast food” as its selling point. Its rapid expansion strategy has helped it beat its much older and more established peers like McDonald’s. In fact, Subway now has more franchises across the U.S. than McDonald’s.
That expansion is said to have come at a price, though. It is believed that its ubiquitous franchises are now cannibalizing its own sales. The price hike for its most popular deal may have something to do with covering up for those cannibalized sales.
Separately, the company has recently settled a lawsuit that accused it of cheating its customers. Subway was allegedly advertising an 11-inch sub as a footlong, or 12-inch, sub. Subway is now ensuring that its footlongs really are a foot long. That has also added a cost, albeit miniscule, to the production of its five-dollar subs, which the extra dollar increase in price might help cover.
Nonetheless, as one Tweet aptly pointed out, the $6.00 footlong “doesn’t have the same catchiness.” It remains to be seen whether this new deal will turn out to be as successful as its predecessor. It might if the new Subway six-dollar footlong jingle sticks.