Transcript:
Conway Gittens: Subway is taking inflation head-on, slashing the price on its signature foot-long sandwich from as much as $14 in some cities to just $6.99. Of course, that’s still more than the $5 price tag when the sandwich was first launched years ago. This is just a limited promotion geared at bringing more customers into the doors. You’ll have to use the Subway app or a discount code on the website to get the deal.
Like many other fast-food and casual dining chains, Subway is trying to offset an inflationary spiral that’s put the food industry in a bind. The cost of food continues to rise but consumers have reached a breaking point, and are no longer willing to go along with price hikes on the menu. According to the government’s January Consumer Price Index, the price to eat out jumped 3.4 percent from the same time the prior year.
Related: Iconic fast-food chain shares shutdown news
Subway is the hands of a private equity firm and doesn’t disclose many numbers, but its CEO said in a press release “People continue to watch their spending but don’t want to sacrifice quality, quantity and taste for value when dining on the go. Subway is delivering on all three, with freshly made, great-tasting sandwiches at an exceptional value.”
Value is the name of the game in the food business right now. Go into any fast-food chain and you’ll see value menu options. The prices aren’t as low as they were during the $1 craze of a few years back but the deals are out there. McDonald’s, Chili’s, Taco Bell, KFC have all found a measure of success with so-called value meals. Subway is tweaking its menu as well to include a value meal consisting of a sandwich, drink, and snack but it hasn’t had much success to date.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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