Subway, the global sandwich chain, has faced a difficult few years. The company has been navigating a series of challenges, beginning with the downfall of its long-time spokesperson, Jared Fogel. Once the face of the brand, Fogel was arrested and convicted on charges related to child exploitation. Since then, he’s been in prison, continuously making headlines for his attempts to get out. Despite the scandal, Subway remained a popular option for those looking for quick, healthier meals. But the company is now grappling with another set of challenges that has led to the closure of hundreds of stores.
Subway, compared to fast-food giants like McDonald’s and Burger King, has always offered customers a healthier option. The ability to customize sandwiches with whole wheat bread and an abundance of vegetables has long been one of Subway’s selling points. However, despite its reputation for healthy choices, the chain has been struggling. In 2017, around 900 Subway locations closed, and in 2018, another 500 closures were announced. The company is clearly in a state of transition, and many believe it is faltering because current CEO Suzanne Greco has been unable to replicate the success of her brother, Fred DeLuca, who co-founded the brand and passed away in 2015.
Greco, who has worked at Subway since she was a teenager, took over as CEO after DeLuca’s death. However, her leadership has not been without controversy. Many franchisees have openly criticized her, claiming that she has not provided the necessary support to help them succeed. A report from Business Insider revealed that about one-third of Subway’s 25,800 U.S. locations may not even be profitable, further fueling concerns about the company’s direction.
One frustrated franchisee told Business Insider, “A lot of people in the industry feel that Suzanne is not qualified to be the CEO of the company. She tells us she is doing us a favor while franchisees are losing everything they own.” This sentiment is shared by many in the industry, and it has only added to the mounting pressure on Greco to deliver results.
Rather than attempting to steer Subway back to profitability, Greco has decided to step down. In 2018, she announced her retirement, leaving the company at a critical juncture. Taking over for Greco is Trevor Haynes, Subway’s chief business development officer, who has assumed the role of interim CEO. This marks a historic moment for the company, as Haynes is the first person outside the DeLuca family to lead the chain in its 53-year history.
In her retirement announcement, Greco expressed her deep connection to the brand, stating, “Subway has been part of my life since I was seven years old. I love the brand and the company, and I always will, but it’s time for me to have more balance in my life. I feel very good about the strategic moves we’ve made in the last three years, and I have confidence in the future of the company.” Despite her optimism, the sentiment among franchisees is less certain. While some are hopeful about the future, many remain “cautiously optimistic” about the new leadership and the company’s prospects.
One former franchise manager told The New York Post, “Her [stepping aside] was long overdue.” This statement reflects the general feeling among those who have been critical of her leadership. Running an international brand like Subway is no easy feat, and it seems that Greco was never fully expected to be in the CEO role for an extended period. She took on the position as her brother was battling leukemia, and now she hopes that her chosen successor can bring the company back to financial stability.
As Subway continues to close hundreds of its stores, many are left wondering whether the brand can bounce back. Will the leadership change be enough to revive Subway, or is the company’s downfall inevitable? Loyal customers may soon find themselves without a local Subway, as the chain continues to shrink.
What do you think? Will you miss Subway if it disappears from your neighborhood? And how do you feel about Greco’s decision to retire after receiving so much criticism?