Dive Brief:

• Subway is replacing its MyWay rewards program with a new, tiered, points-per-dollar rewards program called MVP Rewards, the company announced Thursday. The program will go live on Saturday.
• Existing tokens already earned by MyWay’s 30 million members in North America will be converted into points automatically, the company said, and new members will receive a 250 point sign-on bonus.
• Subway originally launched its MyWay program in 2018. That program offered four tokens for every dollar spent with a $2 Subway credit upon reaching 200 tokens. 

Dive Insight:

A two-fold loyalty trend has swept the restaurant industry since the COVID-19 pandemic reinforced the importance of digital engagement: brands without loyalty programs have added them en masse, and those with loyalty programs have updated them, often to reduce discount rates, tinker with rewards incentives, add tiers or develop new forms of customer engagement.

Subway’s updated tier system is based on yearly consumer spend. Those spending less than $200 are in the Pro tier, which offers 10 points per dollar spent, 5% bonus points on mobile orders, bonus points days, anniversary and birthday discounts and points challenges. The two higher tiers have more bonus days, anniversary and bonus points rewards, and exclusive access to merchandise.

The Captain tier, for customers spending $200 or more per year, earns points 10% faster than the Pro tier. Those spending more than $400 a year qualify for the highest tier, All-Star, and earn points 20% faster, but it is not clear if that is 20% faster than Pro members or than Captain members.

Mike Kappitt, the company’s chief operating and insights officer, said the new program was designed in part based on customer feedback.

“MVP Rewards gives our guests more of what they love from Subway, with a few hidden surprises baked in, so every guest feels like an MVP and comes back to Subway more often for their favorite subs,” Kappitt said. 

Subway’s loyalty renovation is similar to other loyalty overhauls by major brands. The addition of challenge elements is similar to the gamification of loyalty programs pursued by Denny’s and Chipotle both of which use challenges to encourage specific forms of customer engagement. Tiers are another common aspect of new loyalty launches, with Sweetgreen debuting a two-tiered loyalty program nationwide in April and On The Border adding spend-based tiers in May. P.F. Chang’s also added tiers, though based on subscriptions. Dunkin’ added a tier last fall, but based it on frequency rather than spend.

Subway’s loyalty refresh is part of a multi-year top-to-bottom overhaul of the brand’s menu and brand positioning after years of falling sales. That overhaul has touched on everything from deli slicers and menu overhauls to franchising strategy, and has, according to the chain, reversed its same-store-sales stagnation over the past 10 quarters. This remake of Subway helped draw an acquisition bid from Roark Capital this year in what would be the largest restaurant M&A transaction since 2020.