Subway is phasing out its decades-old Sub Club program because of consumer fraud found in the program and the company’s long desire to update the overall promotion.
The restaurant chain started offering the free-sandwich promotion at least 25 years ago. Under the program, customers received a stamp for every six-inch sandwich they purchased. Consumers could redeem the card full of eight stamps for a free sandwich.
Franchisees, however, told company officials that customers have been trying to redeem counterfeit stamps and Sub Club cards for free sandwiches. In addition, hundreds of stamps are being sold at online auction sites.
In an effort to stop the fraud and institute a new, electronic version of the program, Subway will phase out the Sub Club program in every restaurant in the U.S. and Canada by Oct. 1, Subway spokesman Len Winograd said last week. An electronic card would replace the paper card and stamps. Under the new program customers could swipe their card to earn and redeem points at participating Subway restaurants.
“The fraud issue is something that affects the local restaurant owners,” Winograd said. “It’s something we have been dealing with.”
But with a new electronic program on the way, “this could eliminate that issue,” Winograd said of fraud.
The company had been considering ceasing the Sub Club program for some time because it is outdated, he added. “The sub club program itself … is old,” Winograd said. “We want to it better. That’s really our hope. We always try to improve things and give customers the best value.”
Subway voted a few months ago to stop the Sub Club promotion and replace it with electronic loyalty cards, Winograd said.
“Electronic loyalty cards are being used by lots of companies,” Winograd said. “It’s easier for the customers to deal with. They don’t have to worry about losing their stamps. It’s much more secure. It’s something that [will] take us into this century.”
However, franchise owners will have their say on the matter. Each Subway restaurant, with the exception of one in the company’s home base of Milford, CT, is individually owned and operated. Through Oct. 1, franchisees will vote on whether to adopt the electronic system or adopt a program to increase special offers without collecting stamps.
Subway will post signs in its restaurants alerting consumers of the changes to give them adequate notice to redeem their stamped cards. The chain operates 18,548 restaurants in the U.S.
“The Subway restaurant chain frequently reviews all of its products and programs,” the company said in a release. “In this case of eliminating the Sub Club Card, we want to insure we still have a program that is beneficial for the franchisees while continuing to generate excitement among customers.”
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