$5 footlongs = $3.8 Billion

icegoat63

Son of Liberty
V.I.P.
#1
In fact, the $3.8 billion in sales generated nationwide by the $5 footlong alone placed it among the top 10 fast-food brands in the U.S. for the year ended in August, according to NPD Group. That puts the $5 menu's success just a notch behind KFC and ahead of Arby's and Domino's Pizza. It helped privately held Subway, of Milford, Conn., lift U.S. sales 17% last year at a time when most restaurant chains, save for industry leader McDonald's, struggled. Actually, make that soon-to-be-former industry leader McDonald's.

Subway's low-cost franchising model and mainstream appeal have allowed it to add 9,500 locations in the past five years, for a total of about 32,000 outlets. At its current growth rate of 40 new stores a week, Subway is poised to surpass McDonald's in worldwide locations sometime early next year. (Measured by total sales, McDonald's $30 billion still dwarfs Subway's $9.6 billion, although Subway has now supplanted both Wendy's and Burger King in market share.)
the-accidental-hero.html: Personal Finance News from Yahoo! Finance
My favorite line in this article is simply this:
Frankel's $5 footlong idea illustrates how a huge company can wake up and eventually seize on a good idea that's not generated at headquarters.
Isnt it just amazing how something as simple as cutting 1 dollar off of the Footlong sandwiches has made that much of an impact on everything?
 

Smelnick

Creeping On You
V.I.P.
#2
The cool thing about them exploding in store population is that Subway actually serves decently healthy food. If you cut back on the mayo and sauces and stuff, its a fairly low calory meal, with the range of food groups. A footlong for 5 bucks is a great price. DOn't know if they have those prices here in Canada yet, cause I still pay 7 something, but then I always get the specialty subs. Maybe the basic ones are still at $5, I'm not sure. It's amazing how many subways there are too. Near my work, I know the location of 6 subways within a 15 minute walking radius.
 

pro2A

Hell, It's about time!
#3
My favorite line in this article is simply this:


Isnt it just amazing how something as simple as cutting 1 dollar off of the Footlong sandwiches has made that much of an impact on everything?
Now if only the government would catch a clue. If it works for business, it will work if you lower taxes too :) Even just a little.

People spend more when it costs less. Economics 101.