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Yet another fast food CEO is stepping down.
Subway announced Tuesday that its CEO, John Chidsey, will retire at the end of 2024. Executive Carrie Walsh will replace him as interim CEO.
Chidsey, the first chief executive outside of the chain’s founding family, joined Subway as CEO in 2019. His departure marks another entry on the list of fast food chain CEOs who have stepped down this year for a variety of reasons, including Starbucks, Chipotle, Shake Shack, and Wendy’s.
Subway, which is owned by a private equity firm, doesn’t reveal specifics about its sales like much of its publicly traded competition. But in recent years, the chain has struggled to keep up with sandwich-making rivals, and data from trade magazines showed that it is facing sales declines from headwinds affecting chains like McDonald’s and Starbucks too. The chain’s store count is also shrinking, closing 400 restaurants in the US last year and finishing 2023 with the lowest store count since 2005.
The company also made expansive menu changes under Chidsey. Last year, the company said it would freshly slice its deli meat to compete with fast food rivals, instead of its traditional method of pre-slicing meat at factories. He also doubled down on pushing orders to its app.
And prior to that, Subway revealed its most extensive menu change to date, switching gears towards more customization and digital growth.
The vast majority of Subways are owned by franchisees, and the company said around 80% of stores would display the $6,000 slicers. But some franchise owners said they were underwhelmed by the investment, noting they haven’t seen a huge difference in sales since implementing the change.
Subway also joined the value wars this year by announcing a $6.99 foot long for a limited time. But another deal, a $6.99 meal for a 6-inch sub with a drink and cookies or chips, will end earlier than planned on December 26 after reportedly lackluster performance.
Incoming interim CEO Walsh is currently the company’s president of Europe, Middle East and Africa and also served as global chief marketing officer. Chidsey will stay on in an advisory role, the company said.
– ’s Jordan Valinsky contributed to this report.
