In recent years, Subway has faced numerous challenges that have led to the closure of hundreds of its locations. Once known for being a healthier fast-food option, the chain has struggled to maintain its place in the competitive market. The company’s difficulties started with the scandal involving their former spokesman, Jared Fogel, who was convicted on charges related to child exploitation. His criminal behavior shocked the public, yet Subway continued to be a go-to spot for those seeking a quick, healthy meal. However, recent years have brought even more troubles to the brand.
Unlike fast-food competitors like McDonald’s or Burger King, Subway prides itself on offering healthier choices, with an emphasis on fresh vegetables and whole-grain bread. Customers can customize their sandwiches, making it an appealing option for health-conscious diners. Despite this, Subway has been closing stores at an alarming rate. In 2017 alone, the chain closed around 900 locations, and by 2018, another 500 were slated to shut down. The company is clearly struggling, and many believe that the leadership of CEO Suzanne Greco is part of the problem.
Suzanne Greco, the sister of Subway’s co-founder Fred DeLuca, took over as CEO after her brother passed away in 2015. She has been with the company since her teenage years, working in various roles before taking the helm. However, since assuming the top position, Greco has faced criticism from franchisees who claim that her leadership hasn’t provided the support or growth opportunities needed to keep the business thriving. According to Business Insider, nearly one-third of Subway’s 25,800 U.S. locations may no longer be profitable—a devastating blow to a brand that once boasted the highest number of locations worldwide.
One franchisee, speaking to Business Insider, expressed frustration, saying, “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 dissatisfaction has led many to question whether Greco’s leadership was truly in the company’s best interest, especially during such a crucial time for Subway.
Rather than pushing to turn the company around, Greco made the decision to retire in 2018, stepping down from her role as CEO. In her place, Subway’s chief business development officer, Trevor Haynes, was appointed interim CEO. For the first time in its 53-year history, Subway would be led by someone outside the DeLuca family. Greco’s departure signaled a significant shift for the company as it continued to struggle to maintain its foothold in the fast-food industry.
In a statement regarding her retirement, Greco expressed her love for the company, saying, “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.” However, her confidence is not necessarily shared by others. Franchisees remain “cautiously optimistic” about the company’s future, while some industry insiders believe her decision to step down was long overdue.
A former manager of Subway franchisees told The New York Post, “Her [stepping aside] was long overdue.” It’s clear that many within the company had been waiting for this leadership change, hoping that new management could help turn things around. Running an international company, especially one in decline, is no easy task. Greco, by all accounts, was not expected to hold the CEO position for too long. Her brother chose her to take over as he was dying, but now the hope is that her replacement will bring the company back to profitability.
With hundreds of stores closing and new leadership taking over, Subway is at a crossroads. The question remains: Will the changes be enough to save the beloved sandwich chain, or will it continue to lose ground in an increasingly competitive market? Only time will tell. Meanwhile, many loyal customers are left wondering if their local Subway might be the next to disappear. Will you miss Subway if it leaves your neighborhood?
What do you think about the CEO retiring after receiving so much criticism?
