Dive Brief:
- Subway is updating its Sub Club two months after it was relaunched, the company said in an email to Restaurant Dive.
- On April 1, the program’s structure will be updated to allow for guest flexibility in earning and redeeming rewards, the company said. The biggest change will be the removal of its stamp program, through which members could earn a free footlong sandwich after three footlong purchases. The company has already removed references to the offer on its rewards landing page.
- A Subway franchisee group petitioned Subway in January asking the company to revise the Sub Club program, particularly the stamp program. Franchisees have criticized footlong offers and discounts in the past, saying that the offers cut into their already low margin business.
Dive Insight:
While the free sub offer will be removed, the company is offering time-limited discounts on subs throughout the year. It is currently offering a 2 for $6 for half-inch subs promotion through Feb. 24. In January, it offered a free footlong sandwich to travelers assigned to middle seats, following Southwest Airlines decision to end its open seating policy.
The revival of the Sub Club led to millions of people joining the program and “reignited conversation around value,” the company said. Subway set up its Sub Club to allow for customers to earn rewards quicker. But an effective 25% discount rate on a core menu item was likely too much for operators.
“Looking ahead,we’re exploring additional reward opportunities, including potential partnerships and more dynamic ways to recognize and engage members,” the company said in a statement.
The updated program will allow members to earn points, with 400 points yielding $2 in Subway Cash and 1,200 points yield $6, according to an update to the terms and conditions effective April 1. Members are also eligible to receive other rewards on occasion that are not points-based offers. This is similar to the chain’s MyWay program that launched in 2018 and ended in 2023. That system offered a $2 credit when a member earned 200 tokens.
