Restaurants and retailers long ago realized that loyalty programs are not just a simple bonus offering. They are often a primary factor driving where people choose to spend their money, especially in tough economic times.
Research suggests that the first modern loyalty programs date back to the 18th century, according to The New York Times.
And while loyalty programs have transformed from “copper tokens” to cards, it’s only the technology that has changed, not the underlying idea: When consumers get something for “free,” we feel socially obligated to return the favor, and are drawn to come back for a reward.
The importance of loyalty programs, by the numbers:
- 72% of consumers say loyalty programs make them more likely to spend with a brand.
- 56% confirm they actually increase their spending because of a program.
- Rewards are now the top reason people stay loyal, surpassing even product quality.
Sources: Deloitte 2025, EY 2025
Retailers and restaurants frequently adjust their loyalty program offerings, aiming to respond to current consumer trends. Sometimes the changes please customers, but other times they are left disappointed.
Subway just made some changes to its loyalty program, frustrating a number of customers.
Photo by Scott Olson on Getty Images
Subway removes free footlong offer from Sub Club
Subway is making major changes to its “Sub Club” loyalty program starting April 1, just two months after it brought the program back.
The fast-food restaurant chain has canceled its “Buy 3, Get 1 Free” stamp program, the company confirmed in an email to Restaurant Dive.
Starting April 1, the program’s structure will be revised providing consumers with more flexibility in earning and redeeming rewards, Subway said. Regarding the free footlong sandwich, Subway has already removed references to the offer on its rewards landing page.
Subway Sub Club loyalty program changes highlights:
- No more “Buy 3, Get 1 Free” stamp program
- Instead of stamps, Subway is moving back to a points-based system (similar to its old “MyWay” program):
400 points = $2 in Subway Cash1,200 points = $6 in Subway Cash
Source: Subway
Sub Club members are sometimes also eligible to receive other non-point rewards or “dynamic” perks through the app. It is important to note that Subway Cash is not a gift certificate and doesn’t have cash value, meaning it can’t be exchanged for cash or converted to a gift card balance.
The company says the points system gives customers more flexibility to earn and spend rewards, rather than just waiting for a free sandwich.
“Looking ahead, we’re exploring additional reward opportunities, including potential partnerships and more dynamic ways to recognize and engage members,” the company said in a statement.
Why is Subway removing the free sub offer?
Earlier this year, the company’s franchisee group previously asked the company to make changes to its new “Sub Club” loyalty program, Restaurant Business reported. Franchisees were concerned that the program is too generous, cutting into their already low-margin business.
The petition, signed by franchisees of more than 5,000 restaurants, was sent by the North American Association of Subway Franchisees, or NAASF. The group further asked that Subway, which owns more than 19,000 restaurants in the U.S., reinitiate talks with the group.
“Although we may at times have differing perspectives, we believe that a strong, constructive working relationship between Subway and NAASF is essential to stabilizing and strengthening our brand,” Bill Mathis, a Subway franchisee and chairman of the association, wrote in a letter to corporate leadership in January, as reported by Restaurant Business.
Customers react to Subway Sub Club loyalty program changes
The news quickly reached Reddit, where customers shared their reactions to the loyalty program changes. The overall sentiment appears to be strongly negative, with the reward change seen as a massive cut in value.
This has led a number of commenters to consider other sandwich options, such as Jersey Mike’s, or to stop eating at Subway altogether.
“They went from a 25% return to 5%,” the user behind the original post on this Reddit thread argued. “That’s not a minor adjustment, that’s an 80% cut in rewards.”
“They are going to piss off a lot of customers with this change, especially after how hard they have recently been advertising the buy 3 get one free deal for their footlong sandwich,” user Discipulus42 commented.
Others focused on other options. “Well jersey mikes is waay better and worth the money anyway. easy choice,” said user bbqfetus01.
A number of customers were really frustrated with the change, claiming they already don’t eat there without coupons and suggesting this new reward system will push them further away.
Related: Marriott Bonvoy rolls out a major new offer for loyal members
