New York (CNN) — Subway has announced a significant change in its leadership as CEO John Chidsey plans to retire at the end of 2024. This decision, disclosed on Tuesday, will see Carrie Walsh stepping in as the interim CEO.
Chidsey, who took the helm of the sandwich chain in 2019, was the first chief executive not belonging to the founding family. His retirement is part of a trend this year, as several fast food chains, including Starbucks, Chipotle, Shake Shack, and Wendy’s, have also seen their CEOs step down.
Under Chidsey’s leadership, Subway has faced strong competition in the fast food sector. Data from industry magazines highlights the struggles the franchise encounters, with reports indicating that Subway’s sales have been declining amidst challenges plaguing other major chains like McDonald’s and Starbucks. The company has also reduced its presence by closing 400 locations in the United States last year, bringing its store count to the lowest level since 2005.
During his tenure, Chidsey initiated significant changes to the menu, introducing freshly sliced deli meats rather than the pre-sliced options traditionally used. This move aimed to elevate Subway’s standing against competitors. Additionally, the company has been focusing on increasing app orders, aligning with the push towards digital growth and customization in the fast food landscape.
While Subway’s majority of locations are owned by franchisees, the company indicated that about 80% of stores would start using a new $6,000 meat slicer. However, some franchise owners expressed disappointment, stating that the investment did not yield a noticeable boost in sales.
This year, Subway participated in the competitive landscape of pricing by introducing a $6.99 footlong for a limited time. Nonetheless, feedback regarding another promotion—a $6.99 meal deal for a 6-inch sub, drink, and cookies or chips—led to an early conclusion of the offer on December 26 due to lackluster sales performance.
Carrie Walsh, who is currently serving as the president for Europe, the Middle East, and Africa and has experience as the global chief marketing officer, will be leading the company in the interim following Chidsey’s retirement. After stepping down, Chidsey is expected to continue with the company in an advisory capacity.
– CNN’s Jordan Valinsky contributed to this report.
