The Subway sandwich chain is responding to runaway inflation in Pakistan by introducing a 3-inch sandwich at half the price of its regular offering to help customers afford a meal.
It is a move that makes one wonder if plans are in the making to roll out the cheaper sandwich elsewhere, such as here in the U.S. where Bidenflation is quickly sending fast food prices soaring past the ability of many Americans to afford eating out.
Subway is promoting its new “mini sub” and telling Pakistani customers, “Our New Mini Sub is the cutest explosion of taste you’ll ever experience!”
Pakistan has been suffering a major economic crisis with staggering double-digit inflation which is expected to continue at least through the remainder of this year, according to restaurant news website Chew Boom.
Subway operates 100 locations in Pakistan.
According to Bloomberg, Pakistan has been hit with a 27.38 percent inflation rate this summer causing major pain for consumers there. Food inflation has been even worse, clocking in at 38.5 percent.
“Price gains are set to pick up again as a weaker rupee drives up import costs and the government increases prices for fuel and utilities to meet the International Monetary Fund’s aid terms,” said Ankur Shukla, a South Asia expert at Bloomberg Economics.
Experts believe that Pakistan will be battered by 30 percent inflation for some time to come.
It is a cautionary tale about his badly inflation can affect both the citizens and businesses and one that is dangerously close to occurring here in the U.S. as Bidenflation batters this country.
After all, a 3-inch, mini-sub would sound good to many Americans who are starting to become priced out of being able to afford to eat out.
In July, both McDonald’s and Chipotle had already reported dwindling sales figures from its lower-income customer base as Biden’s horrid economy has priced them out of the fast food market.
“We’re definitely seeing a slowdown in their purchase frequency,” Chipotle CEO Brian Niccol said of its lower-income customers, according to Bloomberg. “You’ve got higher gas prices. Everything is more expensive.”
Niccol added that customers making less than $50,000 annually had seriously curtailed their fast food purchases.
Chipotle said it is seeing less traffic from that income bracket which makes up 40 percent of its customer base.
Just like in Pakistan, food prices have been soaring in the U.S. under the Biden regime. Breakfast foods, for instance, have soared to prices not seen since “malaise” year of 1979.
In July, the price of eggs reached a 46.8 percent price increase since last year, according to data from Information Resources Inc.
From July 2021 to July 2022, frozen dinners and entrees increased by nearly 23 percent. Butter and margarine prices have gone up about 26 percent. The price of fresh citrus fruits has also gone up nearly 27 percent, according to IRI.
Costs of staple food items for this year’s Independence Day celebrations were also way up over last year, the National Retail Federation reported in July.
Beer prices jumped 8 percent, snack chips went up 15 percent, bread was up 22 percent, and ground beef is up 1 percent over the previous year, according to a recent Wells Fargo Agri-Food Institute report.
It is sad to see so many people in Pakistan facing severe want with runaway inflation. But, while it isn’t quite as bad here, the same thing is happening to Americans. With the weakening dollar, one wonders how long it will be until Subway feels compelled to introduce its 3-inch sub here, as well?
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