Subway announced Tuesday that CEO John Chidsey will fall down at the end of 2024, marking the end of a five-year term that was alleged to change this role. Chidsey, who joined the company in 2019, is credited with significantly turning around the iconic sandwich chain, including revitalizing its menu and arranging its sale to personal equity firm Roark Capital earlier this 12 months. His departure comes as the company prepares for its next phase of growth under recent ownership.
The company also announced that Carrie Walsh, Subway’s current president for Europe, Middle East and Africa (EMEA) and former global chief marketing officer (CMO), will assume the role of interim CEO effective January 1, 2025 while Subway searches for a everlasting Chidsey’s successors.
Chidsey’s legacy: Subway’s transformation
Chidsey’s arrival in 2019 marked the starting of a daring transformation for Subway, which had been struggling with declining sales, franchisee dissatisfaction and fierce competition. His tenure was defined by strategic initiatives akin to “Eat fresh refreshment“, a major overhaul of the Subway menu that introduced top-quality ingredients, recent recipes and simplified options like the Subway range.
Perhaps most notably, Chidsey played a key role in Roark Capital’s purchase of Subway in 2023, positioning the company for long-term growth.
A key moment for franchisees
For Subway’s greater than 37,000 franchise locations, the leadership change creates opportunities to deal with long-standing challenges akin to rising costs, labor shortages and changing consumer expectations. Franchisees who play a key role in the brand’s success can profit from reinvestment in tools and support to enhance operations and profitability.
Subway’s latest innovations, akin to digital ordering enhancements and loyalty programs, have already shown promise in attracting recent customers and driving growth. However, maintaining this momentum would require a continued focus on brand modernization and strengthening relationships between corporate leadership and franchise operators.
As Subway enters 2025, Chidsey’s departure and Walsh’s interim leadership mark an essential milestone in the company’s journey. The brand’s ability to navigate this transformation and build on recent successes will probably be key as the brand prepares to jot down its next chapter under recent ownership and leadership.
What’s next for Subway?
The transition of Carrie Walsh as interim CEO signals a focus on stability and continuity. Walsh, a seasoned executive with experience leading global markets and marketing strategies, steps into the role as Subway works to strengthen its growth strategies under Roark.
The next leader will face the challenge of balancing innovation with franchisee support. Many franchise owners hope this transition will create greater alignment between corporate leadership and field operations. With Roark’s experience in franchising, the company will likely double down on strategies to extend profitability and strengthen its franchise network.
Read more: CNN