by Stone Age Brands
I observed Subway being a bit off focus when it comes to $5 dollar foot long, even though it's catchy and become big buzz. It may profit in the short term, but Jared was their mascot testimony for "Eat Fresh" slim down, which has taken a back seat to "Eat More" foot long- fill up. They're pushing more on price than on promoting health. The new generation of healthy eaters who would have forgotten about Jared in decades from now may discover other alternatives.
Jared is Subways spokesperson celebrity as Charleston Heston was to NRC or as Colonel was to KFC. Without the star, you don't have a show.
View this interview below with Subway executive and Brandweek magazine about five dollar foot long and Jared:
Q&A: Subway Chief Chats About Sales Surge
Q&A: Subway Chief Chats About Sales Surge
July 3, 2008
BW: One criticism I've heard is that you rely too much on Jared and need to get rid of him.
JM: There is no reason to move away from Jared. Now you need to broaden it so he doesn't become the only thing we stand for, but it makes no sense [to move away from him]. Every time we do advertising with Jared we get instant recognition. People relate to him. He is such a clear communicator of weight loss. He is as popular as ever. It's kind of funny you go out with him to these events and he's like a rock star. The public loves him. He's approachable. He's like an everyman who has made good. They all feel like they know him. You go down the street and the cops say, 'Hey Jared, let's get a picture taken.'
BW: Will the $5 sub stick around?
JM: There is a ton of cost pressure on this business from the supply side, fuel markups, labor costs are going up, and utilities are going up. Despite that we're going to try and keep the price point where it is. But, we have good economics and good franchisees. And it turns out there is a lot of price elasticity. The traffic response has been remarkable. That price point is magic. Everyone in the world is copying it now. Not just the sandwich guys but also the burger guys. They are all trying their version of the $5 [item] because it is such a good price point. In this economy you have to have value. Fast casual chains are well positioned when people have money, but now people don't want to spend $8 for lunch, they want to spend $5. We're well positioned.
http://www.brandweek.com/bw/content_display/esearch/e3i0225fdadff130eba1c4049fa0e1658d8
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