Subway, once the darling of the fast food industry, has been facing a perfect storm of challenges that have left the company reeling. From the scandal surrounding its former spokesperson, Jared Fogel, to declining profitability and a series of ill-fated leadership decisions, Subway’s struggles have been well-documented. Despite its reputation for offering healthier alternatives to traditional fast food, the company has been forced to close hundreds of locations in recent years.
At its peak, Subway was the largest fast food chain in the world, with over 25,000 locations in the United States alone. However, the company’s fortunes began to decline after the death of its co-founder, Fred DeLuca, in 2015. DeLuca’s sister, Suzanne Greco, took the reins as CEO, but her leadership was met with widespread criticism from franchise owners.
Greco’s tenure was marked by a lack of support for franchise owners, who are the lifeblood of Subway’s business model. Many owners felt that Greco was out of touch with the needs of the company and its franchisees, and that she failed to provide the guidance and resources needed to drive growth. As a result, nearly one-third of Subway’s U.S. locations are no longer profitable, a staggering statistic that has left many wondering about the company’s future.
The relationship between Greco and franchise owners was strained, to say the least. Many owners felt that Greco was more concerned with protecting the interests of the company’s corporate office than with supporting the small business owners who were struggling to keep their locations afloat. As one franchisee told Business Insider, “A lot of people in the industry feel that Suzanne is not qualified to be the CEO of the company.”
In 2018, Greco announced her retirement, stepping down as CEO after more than three decades with the company. Her departure marked the end of an era for Subway, and many wondered if it was too little, too late. Trevor Haynes, Subway’s chief business development officer, took over as interim CEO, becoming the first non-DeLuca family member to lead the company.
As Subway looks to the future, franchise owners are cautiously optimistic about the company’s prospects. While many are hopeful that Haynes will be able to turn the company around, others are more skeptical. As one former franchise manager told The New York Post, “Her stepping aside was long overdue.”
The question on everyone’s mind is: can Subway recover from its current struggles? The company’s future hangs in the balance, and only time will tell if it can regain its footing and once again become a dominant player in the fast food industry.
