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Thursday
Dec012011

Subway Ups Ante In Dollar Menu War

Scott Olson/Getty Images(MILFORD, Conn.) -- Subway is offering a $2 subs in December, which may excite frugal fans but still keep franchisees happy. The sandwich chain announced this week it was only selling its 6-inch meatball marinara and cold cut combo sandwiches at the discounted prices of $2 during its Customer Appreciation Month.

Since the economic downturn began, many fast-food restaurants have featured dollar menus for a limited number of items or time period, such as Taco Bell’s $2 menu from mid-2010. McDonald’s currently has eight items on its $1 menu.

It seems a difference of $1 can make or break a promotion in the eyes of franchisees. When Burger King announced the $1 double cheeseburger in 2009, franchisees sued, saying they could not make a profit at that price.  Franchisees, represented by the National Franchisee Association, and Burger King reached a settlement in April, leaving the double cheeseburger on the Value Menu at $1.29.

The franchisees did not get money in the settlement but gained more power in future decisions about the Value Menu. Burger King did not return a request for comment.

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ABC News Radio