Subway introduces its first-ever 3-inch sandwich to fight inflation
In an effort to combat soaring inflation in Pakistan, Subway, the US-based fast-food chain, has introduced a three-inch sandwich for the first time in any market. The bite-sized offering, which was first spotted on social media posts in August, aims to provide value to Pakistani customers struggling with the cost-of-living crisis, according to a company spokesperson. The firm usually offers six-inch and 12-inch sandwiches.
Pakistan struggles with high inflation
Currently grappling with the fastest inflation in Asia, Pakistan has seen double-digit percentage increases, leading to a cost-of-living crisis. Despite the headline inflation rate cooling for the third consecutive month in August, it remains well above target. The food inflation continues to rise, up by 38.5% from a year earlier. Meanwhile, the currency fell by 6.2% last month.
Restaurants adapt with smaller portions, deals
To cope with spiraling prices, many Pakistani restaurants have raised the prices or reduced quantities. Some have started introducing smaller portions or meal deals to provide value to the customers. McDonald's, for example, has launched a 'Happy Price Menu' which contains lower-priced items. Meanwhile, KFC is offering a 'Value Bucket' featuring smaller portions. There will be no end to these measures anytime soon.
IMF loan program exacerbates inflation challenges
Pakistan's $3 billion loan program, which has been approved by the International Monetary Fund (IMF), has further complicated efforts to manage price pressures and currency declines. Reforms connected to the debt bailout, such as easing import restrictions and removing subsidies, have fueled annual inflation, which hit a record 38% in May.
