California’s $21 Subway Sandwich Has Sparked a Nationwide Debate

However, in recent years, and especially this year, Subway has become increasingly expensive. When one customer wrote on social media that they paid $21 for a Subway sandwich, the internet chimed in to condemn the corporation. While some people blame inflation, others say the biggest influence on price is the country’s ever-increasing minimum wage.

However, as with almost all consumer goods, the prices at Subway increased significantly shortly after the new millennium. 

While prices vary by state and even specific locations, the average price is between $6.99 and $8.99, and that’s only for the six-inch sub. Drinks and chips cost several dollars more.

The promotion was simple: customers could select one of Subway’s many beloved sandwich options and pay only $5 (before tax) for the 12-inch sub.

While some stores saw a 35% or even a 50% increase in sales, others far surpassed 50% more in annual revenue.

Many people forget that inflation hits businesses just as it does individual consumers. From increased rent on commercial spaces to a higher price point for ingredients, labor, and transportation, Subway had to admit that $5 was just too low.

Therefore, if customers want a full meal, they’re paying anywhere between $15.99 and $22.99, or even more if they want a cookie for dessert. 

But for those who live in populated states like California or Massachusetts, a $20 footlong sandwich is, unfortunately, the new normal.

The user @waldorsockbat wrote, “I bought a Subway Sandwich for 21 bucks. Guess my parents were right, we do have food at home.” The post has since gone viral, and thousands of people have commented their opinions on the matter.

Another said, “I managed to get a foot long for like $10-11 bucks with a coupon last week.” But the majority of users who commented were simply appalled by the fact that any sandwich, specialty or not, could cost $21.

The Subway Rewards App can certainly be helpful for frequent customers, but they need to purchase sandwiches in order to get redeemable points for discounts. Essentially, unless someone eats at Subway quite frequently, the app doesn’t offer much.

Some experts agree that inflation is the sole influencer of Subway’s price jumps, whereas others simply blame corporate greed. Still, some say that the ever-increasing minimum wage for fast food workers is forcing companies to spend far more on labor and, consequently, charge more for their products.

On April 1, 2024, Governor Gavin Newsom’s law increasing the minimum wage for fast food workers from $16 to $20 went into effect, and there have already been significant consequences.

They reported that they may have to raise their prices, lay off employees, or even close down some locations to maintain their current revenue because of the bill.

Millions of people across the country are tightening their purse strings as the cost of living increases, and for many, that means skipping any expensive extras. 

Additionally, one in every ten Americans reported that they are living paycheck to paycheck and have to put off paying at least some of their bills every month to make ends meet.

The Federal Reserve Bank reported that the consumer price index has risen by 35.9% since 2017, which means that Americans are paying almost 40% more for all goods and services, including necessities like groceries, utilities, and rent, as they did just seven years ago.

As of 2022, 12.4% or 37.9 million people were living below the poverty line in the US, and 58% of Americans fell in the middle-income tier that year.  So, by crunching the numbers, if 36% of Americans are struggling to make ends meet, that means at least almost half of the country’s middle-income earners can’t afford the necessities.

Millions of Americans have had to cut back on superfluous spending, and for many people, that means eating outside of the home. While fast food used to be a great option for saving money while feeding the family, that’s simply not true anymore.

In fact, as prices are now, over 80% of Americans consider fast food a luxury. If they go up any more, Americans may stop eating fast food altogether.

Data collected from the Federal Reserve Bank of St. Louis reported that fast food prices have increased by 41% since 2017. And for many Americans, even those high-earners, these prices are simply unacceptable.

Wendy’s has even announced a $3 breakfast combo, and Taco Bell expanded its “Cravings Value Menu” to include at ten items that are all under $3.

And many are wondering if Subway will do the same to keep its sales from declining.

Therefore, Subway customers can continue to expect the same, or even higher prices, over the next year.