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Bluffton, Ind.
June 8, 2005

By Sarah Pulliam
Fraud is forcing Subway out of the food stamp business.
Bluffton’s Subway customers must redeem their free sandwich cards by July 31 while the entire program will be phased out of the company by Oct. 1.
Subway spokesman Kevin Kane said people have been creating and selling copies of the restaurant’s stamps and cards, and various franchises have discovered counterfeit stamps.
Kane could not estimate losses for Subway’s more than 23,000 restaurants in 82 countries due to counterfeit stamps.
“The unfortunate part was it wasn’t lost by the company,” Kane said. “It was lost by the franchises which is more upsetting.”
An eBay search Wednesday found 264 auctions and an $150 bid for 5,000 Subway stamps to redeem 625 sandwiches.
For more than 20 years, customers could receive a stamp for each 6-inch purchased sub. After purchasing a drink, customers could return the card with eight stamps for a free sandwich.
“It’s an old program,” Kane said. “It seems kind of antique when you’re giving someone a paper card and have them lick the stamps.”
Kane said each franchise will choose its own promotional program to replace the stamp program.
Bluffton Subway’s owner Jim Miller said his restaurant will not replace the stamp program but customers are understanding.
Miller, a Uniondale resident, said that in 2004, he gave out more than $450,000 in free subs throughout his 21 franchises.
“We can’t afford it anymore,” Miller said. “There aren’t many restaurants that have programs like that because the amount of theft is just too high.”
While he could not estimate how much money Bluffton’s Subway lost due to fraud, Miller said some customers return cards with stamps that have consecutive numbers, so ending the program was a positive step for him.
“It’ll help our bottom line,” he said. “It also reduces the akwardness of customers who are routinely coming in with fraudulent stamps.”
Bluffton will see sandwich restaurant Quizno’s open in July, according to Owner Jeremy Eisenhut.
“Subway’s my biggest competition in town because it’s a similar product,” Eisenhut said.
Eisenhut, a Bluffton resident, said he thinks his franchise will be successful because they have their own stamp program similar to Subway’s called the Qcard.
Customers who purchase $5 at Quizno’s receive a stamp to fill a Qcard. Once customers fill the Qcard with ten stamps, they may return the card with ten stamps for $5 off the next purchase.
Miller said he doesn’t think Quizno’s opening will hurt his business.
“In the many different markets that have Quiznos, Subway hasn’t lost any money at all,” Miller said. “They sell a smaller sandwich for more money.”
Bluffton resident Cindy, who declined to give her last name, said she really liked the stamp program and still has one and one-half cards filled.
“It might make it less likely for us to go to Subway,” she said.”
Decatur resident Amy Garcia said she was a little disappointed Subway ended the stamp program and still has three full cards.
“It was nice that they did it but it won’t affect how frequently I go there,” Garcia said.
Garcia eats at Subway one to two times a week and said she likes Subway’s new program where they provide a special of the day.