What it had to solve
Subway needed volume in a weak economy in 2008, and again in 2020 when customers were short of cash and competitors offered their own $5 meals.
The idea
One price, one sandwich: every Footlong for $5, a deal so simple it became a shorthand for hard economic times.
How it works
The $5 Footlong launched in March 2008 for what was meant to be four weeks and ran for seven. In June 2020 Subway re-launched $5 footlongs for at least the summer when customers order two, with a Charlie Puth video and new jingle and a plan to hire 50,000 workers.
What it did
Per Fortune, citing Businessweek, sales rose 25% in the first two weeks of 2008, and by August 2009 the deal had generated $3.8 billion in US sales. Some franchisees complained to the FTC in 2020 that the promotion was unprofitable.
Background
Subway introduced the $5 Footlong in March 2008. Fortune calls it one of the most successful campaigns in the chain's history: sales rose 25% within two weeks, according to Businessweek, the four-week deal was extended to seven, and by the end of August 2009 it had generated $3.8 billion in nationwide sales. Rivals such as KFC, Pizza Hut and Boston Market copied it with their own $5 meals.
The deal faded during the long economic expansion. One California franchisee said each footlong cost well over $4 to produce, and in September 2018 CEO Trevor Haynes stopped requiring franchises to run it. In June 2020, as a recession began, Subway announced that all footlongs would again cost $5 for at least the summer if two were ordered at once, offering stores an extra $2,100 in cash to take part.
Why it lands
The price is the whole message, so no explanation is needed to advertise it.
Competitors copied it, which shows the format outlived Subway's own use of it.
Fortune notes franchisees said it was unprofitable, so the pull on customers sat against the burden on the people running the stores.
What you can take
A price point simple enough to become a cultural gauge keeps its pull for years, but it only works if the people selling it can afford to.
Since then
In 2020 Subway offered each participating store $2,100 in cash, while some franchisees filed complaints with the FTC saying they were being 'bullied into honoring a promotion that is unprofitable to them'. Fortune's article does not report how the 2020 relaunch performed.
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