The past few years have been turbulent for the international restaurant and deli chain, Subway.
One of their former spokespeople, Jared Fogle, was convicted on charges related to child exploitation and lewd imagery, landing him in prison.
Since then, Fogle has made numerous unsuccessful attempts to gain release, causing further headaches for the company.
Despite the scandal, Subway has continued to draw customers, offering healthier alternatives compared to fast-food giants like Burger King and McDonald’s. At Subway,
diners have the option to customize their sandwiches, choosing their bread and fillings, which has long been part of the chain’s appeal.
However, despite its healthier offerings and enduring popularity, Subway has faced significant challenges.
In 2018, the company closed around 900 stores, followed by an additional 500 closures in subsequent years.
Suzanne Greco, who has been with Subway since her youth, took over as CEO but faced substantial criticism from franchise owners.
Many believed that she had not provided adequate support or fostered growth for the company.
A survey by Business Insider of Subway’s 25,800 U.S. locations revealed that about one-third were not profitable.
According to an industry source, some franchisees expressed frustration, feeling that Greco had failed in her leadership role.
Instead of addressing the mounting concerns, Greco chose to retire.
Following her departure, Trevor Haynes, Subway’s Chief Business Development Officer,
has stepped in as the interim CEO, tasked with steering the company through these challenging times.
Haynes has promised to work closely with franchise owners to address their concerns and improve profitability. He has also expressed a commitment to strengthening Subway’s brand and reputation in the wake of the Fogle scandal.
Despite these efforts, Subway continues to face difficulties. The COVID-19 pandemic has further exacerbated the company’s struggles, leading to a decrease in foot traffic and sales at many locations.
As a result, Subway has announced plans to close hundreds of stores in the coming years. While the exact number of closures is still uncertain, it is clear that the chain is facing a significant downturn.
Franchise owners are understandably concerned about the future of their businesses, and many are looking for ways to adapt and survive in this challenging environment. Some have turned to delivery and takeout options to make up for lost dine-in sales, while others are exploring new menu offerings to attract customers.
Despite these challenges, Subway remains optimistic about its future. The chain has a loyal customer base and a strong brand that has withstood many obstacles in the past.
With a new CEO at the helm and a renewed focus on supporting franchise owners, Subway is hopeful that it can weather this storm and emerge stronger on the other side.
In conclusion, Subway’s struggles in recent years can be attributed to a combination of factors, including the fallout from the Jared Fogle scandal, poor leadership decisions, and the impact of the COVID-19 pandemic. However, with a renewed focus on profitability and customer satisfaction, Subway is working hard to overcome these challenges and build a brighter future for the company and its franchise owners.
