Since its inception in 1965, Subway has been one of America’s favorite fast food chains. It’s more than 20,000 restaurants across the country provide a somewhat healthy and affordable quick meal to millions of Americans.
However, in recent years, and especially this year, Subway has become increasingly expensive. When one customer wrote on social media that they paid $21 for a Subway sandwich, the internet chimed in to condemn the corporation. While some people blame inflation, others say the biggest influence on price is the country’s ever-increasing minimum wage.
Subway Used to Be Affordable for Everyone
Only 30 years ago, Subway was wildly cheaper than it is now. In the 1990s, a six-inch sub with a drink and a bag of chips cost somewhere between $2.99 and $3.99.
However, as with almost all consumer goods, the prices at Subway increased significantly shortly after the new millennium.
Subway Sandwiches Are More Expensive Than Ever
By the 2010s, those same meals cost customers between $4.99 and $8.99. But now, in 2024, prices have increased yet again, some say to almost exorbitant amounts.
While prices vary by state and even specific locations, the average price is between $6.99 and $8.99, and that’s only for the six-inch sub. Drinks and chips cost several dollars more.
Subway’s $5 Footlong Promotion Increased Sales by 50%
During the 2000s and 2010s, when prices were slowly increasing, Subway came up with what many consider to be the most successful promotion of all time: the $5 Footlong.
The promotion was simple: customers could select one of Subway’s many beloved sandwich options and pay only $5 (before tax) for the 12-inch sub.
Some Subways Say a 50% Increase in Revenue Thanks to the $5 Footlong
The corporation started offering the deal in 2008, and it was immediately a huge success for both customers and the franchises.
While some stores saw a 35% or even a 50% increase in sales, others far surpassed 50% more in annual revenue.
Why Did Subway Stop Offering $5 Footlongs?
Subway officially stopped the $5 Footlong deal in 2016. The company claimed they simply could not offer their twelve-inch sandwiches at such a low price and continue to turn a profit.
Many people forget that inflation hits businesses just as it does individual consumers. From increased rent on commercial spaces to a higher price point for ingredients, labor, and transportation, Subway had to admit that $5 was just too low.
Subway’s Footlongs Now Cost Four Times What They Used To
As of 2024, a twelve-inch Subway sandwich can cost anywhere from $10.99 to $16.99, and that still doesn’t include chips or a drink.
Therefore, if customers want a full meal, they’re paying anywhere between $15.99 and $22.99, or even more if they want a cookie for dessert.
Subway Prices Vary Between State and Restaurant
Of course, Subway prices vary by state and location, so there are still some restaurants around the country with a lower price point.
But for those who live in populated states like California or Massachusetts, a $20 footlong sandwich is, unfortunately, the new normal.
One Reddit User Paid $21 for a Subway Sandwich
Although the prices at Subway are no secret, a post by a Reddit user has brought national attention to the outrageous cost of a fast food sandwich.
The user @waldorsockbat wrote, “I bought a Subway Sandwich for 21 bucks. Guess my parents were right, we do have food at home.” The post has since gone viral, and thousands of people have commented their opinions on the matter.
Only Specialty Subway Sandwiches Are Over $20
Several Reddit users commented to say that only Subway’s specialty sandwiches cost more than $20. One person wrote, “If you build your own sandwich and pick only one protein, you can usually get a footlong for around [$]11-12.”
Another said, “I managed to get a foot long for like $10-11 bucks with a coupon last week.” But the majority of users who commented were simply appalled by the fact that any sandwich, specialty or not, could cost $21.
Subway Offers Discounts on Its App
One Reddit user, @throwaway_248163264, wrote, “Download the app. They have 50% off one Footlong right now,” highlighting the various discounts on Subway’s Rewards App.
The Subway Rewards App can certainly be helpful for frequent customers, but they need to purchase sandwiches in order to get redeemable points for discounts. Essentially, unless someone eats at Subway quite frequently, the app doesn’t offer much.
Why Is Subway so Expensive?
It’s not hard to understand that, with the nation’s inflation as it is, Subway can no longer afford to offer a $5 sandwich, but things aren’t so bad that they need to charge $20.
Some experts agree that inflation is the sole influencer of Subway’s price jumps, whereas others simply blame corporate greed. Still, some say that the ever-increasing minimum wage for fast food workers is forcing companies to spend far more on labor and, consequently, charge more for their products.
The Minimum Wage Increase in California Is Evidence for This Theory
There is certainly sufficient evidence for the minimum wage theory, specifically in California.
On April 1, 2024, Governor Gavin Newsom’s law increasing the minimum wage for fast food workers from $16 to $20 went into effect, and there have already been significant consequences.
Several California Fast Food Chains Announced Changes in the Near Future
Within less than a month, several companies, such as McDonald’s, Chipotle, and Subway, told the press that they would have to make some serious changes in their California locations.
They reported that they may have to raise their prices, lay off employees, or even close down some locations to maintain their current revenue because of the bill.
The Fast Food Industry Is Losing Customers
The idea that fast food chains could and will be raising their prices even higher to combat the increasing cost of labor will affect the American people and could even devastate the industry.
Millions of people across the country are tightening their purse strings as the cost of living increases, and for many, that means skipping any expensive extras.
Millions of Americans Are Struggling to Pay Their Bills
As of February 2024, a whopping 36% of Americans reported that they are struggling to pay for basic household expenses, which include rent, mortgage payments, utilities, and groceries.
Additionally, one in every ten Americans reported that they are living paycheck to paycheck and have to put off paying at least some of their bills every month to make ends meet.
The Cost of Living in America Has Skyrocketed
Contrary to some opinions, this reality has not come about because Americans are simply “bad” at budgeting their money and overspending on non-necessities.
The Federal Reserve Bank reported that the consumer price index has risen by 35.9% since 2017, which means that Americans are paying almost 40% more for all goods and services, including necessities like groceries, utilities, and rent, as they did just seven years ago.
Half of All Middle Income Earners Are Struggling to Make Ends Meet
While the United States will always be divided into low, middle, and high-income earners, the newest trends show that even those Americans considered middle-class are finding it challenging to get by.
As of 2022, 12.4% or 37.9 million people were living below the poverty line in the US, and 58% of Americans fell in the middle-income tier that year. So, by crunching the numbers, if 36% of Americans are struggling to make ends meet, that means at least almost half of the country’s middle-income earners can’t afford the necessities.
Millions of Americans Are Eating at Home
With this information in mind, it makes a lot of sense why the American economy isn’t doing nearly as well as it was ten years ago.
Millions of Americans have had to cut back on superfluous spending, and for many people, that means eating outside of the home. While fast food used to be a great option for saving money while feeding the family, that’s simply not true anymore.
80% of Americans Consider Fast Food a Luxury
As Dan O’Donnell of the MacIver Institute explained, “Basic items like McDonald’s cheeseburgers and Chick-fil-A nuggets have risen as much as 200% in less than five years with dire consequences for the lower- and middle-class families who make up much of the fast food customer base.”
In fact, as prices are now, over 80% of Americans consider fast food a luxury. If they go up any more, Americans may stop eating fast food altogether.
Fast Food Prices Have Increased by 41% in Five Years
It’s important to note that while Americans are certainly budgeting more than ever before thanks to the ever-increasing cost of living, the significant increase in fast food prices is also playing a roll in the sharp decline in customers.
Data collected from the Federal Reserve Bank of St. Louis reported that fast food prices have increased by 41% since 2017. And for many Americans, even those high-earners, these prices are simply unacceptable.
Several Fast Food Companies Have Realized Prices Need to come Down
In response to this reality, several chains, like McDonald’s, have decided to offer nationwide deals and have promised to lower their prices (everywhere but California, of course).
Wendy’s has even announced a $3 breakfast combo, and Taco Bell expanded its “Cravings Value Menu” to include at ten items that are all under $3.
Change May Be on the Horizon
These companies, as well as several others, have realized that if they want to ensure their sales stay stagnant, let alone increase, over the next couple of years, they need to find a way to make their products more affordable.
And many are wondering if Subway will do the same to keep its sales from declining.
Will Subway Lower Its Prices in 2024?
However, while Subway has announced new menu items, celebrity endorsements, and various other marketing campaigns, the company has not commented on its prices and certainly hasn’t announced any potential decrease.
Therefore, Subway customers can continue to expect the same, or even higher prices, over the next year.
