With over 200,000 fast food outlets spread across the United States, these establishments have long been popular due to their convenient, tasty, and budget-friendly offerings. However, a shift is occurring now. The prices of fast food items, including those at Subway, have seen a significant rise over the years. The implementation of the new minimum wage law in California has further escalated costs, leading many Americans to question the value of dining at these restaurants.
To grasp the impact of the latest price changes at Subway, it’s important to first understand the historical pricing of sandwiches at this renowned fast food chain. While prices may vary by location and state, back in the 1990s, most Subway sandwiches were typically priced between $2.49 and $3.99. By the late 2000s, these prices had surged to $6.99 or even $8.99.
Back in 2008, Subway launched one of the most successful marketing campaigns in history with the introduction of the $5 footlong deal. This offer allowed customers at nearly every Subway branch nationwide to purchase a 12-inch sub for just $5, leading to a remarkable surge in sales. The promotion led to sales spikes of 35% to 50% in many locations, with some experiencing growth rates exceeding 50%.
However, a decade later, the fast food chain decided to discontinue the iconic deal, citing the rising costs of ingredients as the reason they could no longer sustain offering sandwiches at such a low price.
In the following years, prices at the popular sandwich chain have steadily increased. Presently, a 12-inch sub can range from $8.49 to $10.49, with certain specialty sandwiches priced even higher.
Approximately six months ago, a Reddit user shared that they had purchased a Subway sandwich for $21, a post that has since garnered viral attention.
The post on Reddit garnered responses from numerous users, with many expressing shock and frustration over the high price of a fast food sandwich. Some users suggested using coupons or discounts from the Subway app, while others simply stated that Subway no longer provides value for money.
A few users speculated that the original poster may have chosen one of the specialty sandwiches offered by the restaurant. They pointed out that a custom-made footlong with just one type of protein can now cost around $12.
Despite the variations in opinions, the general consensus was that a single-serving fast food meal should never exceed $20, regardless of how elaborate the sandwich may be.
Subway is not the only fast food chain facing scrutiny for its increased prices. McDonald’s has also hiked its prices, with some locations charging an astonishing $18 for a Big Mac Meal.
Outrage has also been directed towards the $24 price tag for a bacon cheeseburger meal at Five Guys, and Chipotle’s announcement that certain burrito bowls will now cost over $12.
Various factors contribute to the cost of fast food meals, with inflation being a significant factor. This includes the rising costs of ingredients, restaurant rentals, and operational expenses.
Many argue that the primary driver behind the escalating costs at fast food chains is the continuously rising labor expenses, particularly due to the increase in the minimum wage.
Numerous Americans are pointing fingers at California Governor Gavin Newsom for the steep prices at their beloved fast food joints.
Last year, the governor signed a new law that boosted the minimum wage for fast food employees in California by 25%, from $16 to $20. Since the law came into effect on April 1, 2024, several major fast food companies have responded by announcing price hikes.
