Core Insights - Subway has relaunched its Sub Club loyalty program, which had been inactive since 2005, aiming to attract long-time customers through nostalgia [1][2][4] - The new program offers a free footlong sandwich after purchasing three footlongs or six 6-inch subs, representing a 25% reward rate for regular customers [3][4] - The relaunch is part of a broader strategy to enhance customer retention and appeal to value-driven diners amid increasing price sensitivity in the fast-food sector [4][7] Company Strategy - The new Sub Club program is designed for the digital age, eliminating paper cards to prevent counterfeiting and allowing automatic tracking of purchases through the Subway app, website, or in-store [5] - Current members of Subway's MVP Rewards program will be automatically transitioned to the new Sub Club, simplifying the process for existing customers [5] - Additional loyalty perks include earning points that can be converted into "Subway Cash" for discounts, a free birthday cookie, and exclusive promotional access [6] Market Context - Subway's relaunch comes after the closure of 631 U.S. locations in 2024, marking the eighth consecutive year of net closures, indicating challenges in the budget lunch segment [2] - The fast-food industry is witnessing a trend where customers are increasingly price-sensitive, prompting several major chains to enhance their loyalty programs and deals [7]