Subway CEO Exits as Fast-Food Industry Faces Continuing Challenges

Subway CEO John Chidsey, who has been in charge of the white-green-and-yellow brand since 2019, recently announced his retirement from the company in a Nov. 26 press release.

Chidsey will be replaced by Carrie Walsh, Subway’s current president of EMEA and former global CMO, as interim CEO while the company searches for a candidate to permanently replace him.

“I am honored to step into the role of Interim CEO, continuing to drive key initiatives to help boost franchisee profitability and delight our guests through innovation,” Walsh said. “Through a collaboration with the Subway leadership team, employees and our valued franchisees, we will keep elevating the Subway experience and deliver fresh, quality food to more guests around the globe.”

Chidsey will vacate his position as CEO and retire from Subway at the end of the year.

Not the First Fast-Food Leadership Shakeup of 2024

Subway’s announcement of a leadership shakeup is making headlines, but it’s not the first time that a major fast-food chain has signaled a desire for change at the top of the C-suite this year.

As TipRanks reported, Chipotle, Shake Shack, Starbucks, and Wendy’s have also announced leadership changes this year.

TipRanks writer William White indicated that these sorts of executive swaps may be considered as a response to a struggling fast-food sector. The U.S. consumer is debt-laden, cash-strapped, and often elects to skip the increasingly pricey fast-food experience.

McDonald’s has repeatedly stated its renewed focus on delivering value to entice its customer base to return — going so far as to roll out an expanded McValue menu in 2025 — and it’s not alone in pivoting in this fashion.

In fact, Subway also recently attempted a return to value offerings, putting forth a deal of $6.99 for a 6-inch sub with a drink and cookies or chips. But as CNN indicated, that promotion was deemed a failure and will end on Dec. 26, earlier than originally planned.

Subway Faces Continuing Challenges

The sub chain has faced down — and continues to battle with — multiple challenges over the course of 2024.

Earlier this year, Subway called an urgent meeting with its North American franchisees. Declines in traffic and sales were discussed, and complaints from franchisees about corporate-spurred discounting practices were aired.

Additionally, last month, the franchise was hit with a class action lawsuit alleging it was engaging in false advertising regarding the amount of meat present in its steak and cheese sandwich.

Whether a leadership shakeup will materially alter the trajectory of Subway’s business remains to be seen.