$3.8 billion in sales (a Subway's story)

I love this story.

In 2003, after noticing that sales sagged on weekends, Stuart Frankel (owner of two small Subway sandwich shops) came up with an idea: He would offer every footlong sandwich on weekends for $5 (about a buck less than the usual price).

Result: Sales rose by double digits.


When Subway's marketing team noticed this effect, they established the $5 footlong nationwide.

Result: $3.8 billion in sales generated nationwide by the $5 footlong alone. That lifted U.S. sales of the whole company by 17%.


Why?
Hypothesis #1. There is some sort of magic in the $5 price.
Hypothesis #2. Footlong sandwich - that is too much for one person. It motivates you to invite your friend for dinner. This is an offline version of the viral effect.


Cheers,
Charlie Patel ;)



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