As reported in USA Today:

Wednesday, the nation’s largest sandwich chain will announce plans for a $2, six-inch sub sandwich promotion for the month of December. The deal is good only on its popular meatball and cold-cut subs.

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In a still-struggling economy, the chain that set the industry standard with $5 foot-long subs is throwing down yet another gauntlet that’s certain to raise industry eyebrows and lure deal-seeking customers. Several other major fast food chains also dabbled this year with $2 meals — including Taco Bell, Chipotle and some regional KFCs.

“It’s a magical price point,” says consumer psychologist Kit Yarrow. “What it communicates to consumers is that Subway is on their side.”

December is typically a slower month not just for Subway but for the entire fast-food industry. The Subway deal is the lowest-price 6-inch sandwich that the chain has offered in years, says Tony Pace, marketing chief at Subway’s franchisee advertising fund.  “We’re just showing folks a little love when everyone is fretting about the economic future,” he says.

Unlike many items on some fast-food dollar menus, this $2 sub may have higher consumer quality perception — and it can almost pass as a small meal in itself. For the company widely known for promoting the $5 sub sandwich, this is upping the ante. Two of the six-inch subs would fetch $4 —  lower than its bargain $5 foot-long.