this post was submitted on 19 Aug 2024
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When your local chain restaurant/fast food joint starts going off-menu to entice people to come in, you know a business is struggling. Seeing Churros on the menu in a Mexican establishment is perfectly normal. Seeing Churros on the Subway menu is a bit alarming.
I think it's pretty clear the Subway execs (or the executives of their parent/holding company) foresee a recession and are doing as much profit-taking as possible while there's still time before the big crash hits and everybody tightens up their budgets.
Nah I think it’s far more that they’ve developed a reputation as cheap, everywhere, and mediocre then they raised the prices massively. I don’t know anyone who thinks “you know what I’m craving? Subway”. They used to have other niches but sub shops are common and I can get a better vegetarian option elsewhere and for cheaper.
I don’t think they can pull out of this tailspin unless they slash prices to the bone
Subway spent a long time and a lot of marketing money training their customers that a sandwich should cost $5 and taste fine. Not great, but fine. But then the doubled the cost and halved the quality. They spent years teaching customers to avoid the sandwich they now serve.
Little Caesars had a similar problem, but instead of doubling the price, they raised it $1. Cheap pizza for $5 is fine, and cheap pizza for $6 still feels fine.
My local Little Caesars sells the basic pizzas for $9.97 now. Crazy Bread went from $1.99 to $4.99.
Dang, really? Hot n ready's are $6.50 here