Downsizing at Subway

 

When someone recently asked me if I was still writing at the Café Pasadena, I knew it was time – past time – to post something here!   It’s certainly not for a lack of “material”!  I’ve got plenty to write about our city of Pasadena.  Lemme say I’ve turned into a photographer more than writer. But I love doing both. Anyways, lettuce get back to my role as a scribe,…

The Subway name/brand is nearly as recognizable as McDonald’s is in the USA.  So even if they’re not to your taste, it’s unlikely you’ll take your last breath unless you’ve been their customer at least once.  I visit Subway approximately once per month.  Mostly for their 6’’” breakfast sandwich and 16oz coffee combo for $3.75. 

It’s one of the very best breakfast deals.

You can find similar, such as at TOGO’s. But their sandwich is smaller, their coffee cup is smaller, and for giving you less they charge you more: $4.00 here in Pasadena. Don’t ask me to explain the difference.  I’m sure Subway & TOGO’s have very bright, college-grads who have figured out their pricing strategies for them, and, us. 

Sometimes in lieu of price changes businesses will use downsizing as a means to reduce expenses or increase profit.   They give you less or smaller quantity for, initially, the same price. They feel it will work, for among other reasons, because you be less likely to notice or protest the fact they’re giving you less for the same, or sometimes, higher price!

My first recollection of encountering this downsizing business tactic was with rolls of paper towels. Slowly, over a few years, the number of towels per rolls and related thickness of them was decreasing. At first, the price stayed the same, but soon it too changed –  prices increased.  Therefore, with this paper towel industry they had the best of both worlds: downsizing, along with price upswings!

Now, with restaurants you’re entering a very, very competitive business. Everyone from your high-end, $500 a meal celebrity restaurant up to your gasoline stations are selling food & drink.  And everyday eateries are opening, and, closing! 

Subway & TOGO’s are direct competitors. So it wasn’t too surprising to see in the past month  Subway make a move in this breakfast combo race. They chose to downsize their coffee cup from 16oz to only 12oz. Same size as TOGO’s.   25% quantity decrease for the same price.   I suppose it’s similar to a 25% price increase. Even the annual inflation rate is much, much lower!   Price unchanged , for now.

 

DSC08991

 

I suppose the smart people at Subway made this decision because they believe it’s either what their customers would want, or which would  benefit the customer. And, therefore, probably benefit Subway. Give the customer what they want and your business will be rewarded!

Now, as far as your customer/writer is concerned, I don’t want to be given less of anything for the same (or, higher) price!   You?  However,  I will give Subway credit for free refills, something that many others don’t. 

My guess to why Subway is offering less coffee to its customers is perhaps they’re paying more for coffee beans or simply to get by with offering less to we the customer  in order to get more profit. Usually companies don’t announce price increases or quantity decreases.  Not the kinda of sales promotion they usually want to promote.

I will say this. This particular downsizing is not gonna stop me from ordering their breakfast combo.  Bet you they are betting this will be the normal customer response.

 

What about you, my loyal reader: are you inclined to take my view on this downsizing, or are you in agreement with Subway?

Where have you noticed downsizing, or when did you first notice this business tactic?

Do you prefer a price increase over a quantity downsize, or the other way around?

 

 

Gotta Go Get Coffee To Write More! Stay Thirsty My Friends

Red rose

Advertisements

One response to “Downsizing at Subway

Leave a Comment, & I'll Comment on Yours

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s