Subway on Tuesday stated CEO John Chidsey is stepping down on the finish of the yr within the newest C-suite shakeup at a serious fast-food chain, in accordance with a report.
Chidsey took the helm on the largest sub store chain in 2019. Throughout his tenure, he pushed promotions and offers and helped promote Subway to personal fairness agency Roark Capital in a greater than $9 billion deal final yr.
The 62-year-old will keep on as a guide at Subway to assist with worldwide growth, as first reported by The Wall Avenue Journal.
Subway didn’t instantly reply to The Put up’s request for remark.
Carrie Walsh, Subway’s president of Europe, Center East and Africa and the corporate’s former chief advertising and marketing officer, will function interim chief government whereas the corporate conducts a seek for a everlasting substitute.
The 48-year-old beforehand served in senior advertising and marketing positions at Michaels, Pizza Hut and PepsiCo, in accordance with her LinkedIn.
Chidsey’s departure is simply the newest CEO switch-up at a serious fast-food chain. Starbucks, Shake Shack, Papa John’s Worldwide and Wendy’s additionally changed their chief executives this yr as fast-food corporations wrestle to win over cash-strapped prospects spooked by worth hikes.
Quick-food chains have been pushing promotions and meal offers to entice inflation-battered prospects, like McDonald’s and its uber-popular $5 Meal Deal. The Golden Arches not too long ago introduced it was extending the worth meal by the primary half of 2025 and including a brand new “buy one, add one” choice to its menu.
Not all offers have been profitable. This week, Subway is ending its $6.99 sandwich meal deal – which was initially set to run by December – after it failed to herald sufficient visitors, a Subway spokesperson advised the Journal. The corporate stated it can prohibit the deal to on-line orders solely by Dec. 26 and add a 20% off coupon for any sub to its app.
Chidsey — the primary Subway CEO to hail from an outdoor model — performed a task in Subway’s $9.55 billion sale to Roark Capital and targeted closely on worldwide growth, which he’ll proceed to work on as a guide. Subway stated it has franchisee commitments to construct 10,000 new eating places, together with many areas overseas.
When the Roark deal was introduced final yr, Chidsey stated he deliberate to stick with the corporate for the foreseeable future.
Subway rival Jersey Mike’s has additionally been eyeing worldwide growth and this month landed a cope with Blackstone which valued the sub chain at round $8 billion – close to Subway’s sale worth, regardless of Jersey Mike’s having solely a tenth of the worldwide retailer depend.
Chidsey additionally targeted on enhancing present US shops, revamping the menu and shifting the majority of the corporate’s government capabilities to Miami throughout his time at Subway.
He labored to deliver bigger worldwide franchisees into the corporate. Franchisees run the vast majority of the chain’s 37,000 areas.
Chidsey at instances butted heads with US franchisees, who opposed his calls for brand new location tools like meat slicers and his transfer to honor digital coupons in-store.
Subway’s US gross sales rose 2% final yr in comparison with 2022, in accordance with market analysis agency Technomic.
