Subway faces turmoil as CEO John Chidsey announces retirement
- Subway is facing declining sales and franchisee dissatisfaction.
- CEO John Chidsey is set to retire at the end of the year after five years in leadership.
- If these issues persist, Jersey Mike's could significantly increase its market share.
In December 2024, Subway announced the impending retirement of CEO John Chidsey, marking a significant leadership change for the fast-food chain. Chidsey, who took over the role five years earlier as the first non-family executive, planned to stay in position following the company's sale to Roark Capital for $9.5 billion in May. Franchisees have expressed ongoing concern over various management decisions, including the ending of a $6.99 footlong promotion and the burdensome fees imposed on them, which have strained relationships and profitability. At a recent meeting, Subway President Douglas Fry acknowledged a concerning drop in sales across multiple regions, indicating that the chain’s performance has worsened compared to the broader industry. The revelation of Chidsey’s retirement coincides with warnings from franchise advocates about the growing success of rival sandwich chain Jersey Mike’s, raising fears that Subway could be overtaken if complaints from franchise owners continue to be ignored. Robert Zarco, representing the North American Association of Subway Franchisees, voiced hopes for a new beginning that could remedy the tensions between Subway’s central operation and its franchise network. Observing a decline in the number of Subway restaurants, reports suggest major challenges lie ahead for the brand, especially with competitors gaining a stronger foothold in the market.