You might not be able to get your $5 Footlong in between classes for much longer unless you go to school outside of the US. Because Subway is closing 500 of its stores around the US.
For the last few years, Subway has been going through hard times. The series of bad news comes after more than 900 locations closed in 2017.
But whose responsible for this downfall that caused so many Subways to close?
It turns out that the business is going through quite a rocky transition. It all started when the current CEO, Suzanne Greco, first took control of the company in 2015 following the death of the chain’s co-founder, Fred DeLuca.
Though Greco has been part of the company since her teens, many franchisees feel that she has done an inadequate job of helping Subway to grow, or even tread water, for that matter. This is evidenced by a startling quote given to Business Insider from a group of worried franchisees, stating that roughly one-third of the 25,800 US locations may not be profitable.
It’s a very scary reality for the franchisees, many of whom have invested everything they have into their struggling businesses. In a quote from the same Business Insider exposé, one anonymous franchisee places the responsibility for the chain’s demise squarely on Greco.
“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,” one franchisee told Business Insider.
Greco needs to step it up. Instead, she is stepping down. Greco announced that she would retire instead of fighting to keep Subway profitable.
The news has come following the shut-down of hundreds of Subway stores.
According to reports, the number of stores fell by 909 in the US last year. It has reduced three times compared to the previous year. It has recently announced plans to close 500 more US stores in 2018.
Suzanne Greco is the sister of Fred DeLuca, who is the late co-founder of the company. Greco started working with Subway from a very young age and after completing college she joined the corporate staff. Ever since she has been working with Subway, and has been closed to research and development.
Greco said in a statement, “Subway has been part of my life since I was 7 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.”
Now Subway’s chief business development officer Trevor Haynes is stepping up to be the interim CEO. And for the first time in 53 years, the fast-food chain will be run by someone outside the family. She retires at the end of June.
Source: AWM
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