Subway franchises who chose not to accept the company’s digital coupons and promotions will soon be required to do so.
Beginning Dec. 28, all franchises must “honor all digital programs and promotions,” Business Insider reported.
“Effective Dec. 28, 2023, all restaurants will be required to honor all digital programs and promotions, including loyalty rewards and digital discounts,” an internal memo said. “In addition, loyalty incentive programs designed to attract new loyalty members are mandatory and will not be reimbursed by Subway.”
Some Subway franchises haven’t honored the company’s coupons and active promotions in the past, leading to customer frustration.
One California franchise owner, who spoke to Insider anonymously, questioned if Subway could “force” operators to accept low-margin deals via the app.
“Isn’t it considered price fixing to force people to take special offers,” the franchisee said. “In the past, we’ve always had people opt out. I don’t understand how they can do this.”
The franchises also said that while they honor Subway’s digital deals, they know some franchise owners who decided against it.
The new policy change comes as Subway’s $10 billion sale to Roark, which owns Arby’s and Jimmy John’s, is being investigated by the Federal Trade Commission, according to Politico.
The government is focused on determining if the deal gives Roark too much control over “a lucrative segment of the fast-food industry.”
KTLA reached out to Subway but has yet to hear a response.
