Subway announced CEO John Chidsey is stepping down at the end of 2024 at a time when the sandwich giant is struggling to keep pace with its fast-food rivals and just days after it canceled its $6.99 value meal deal because it apparently failed to meet expectations.
Chidsey, who has helmed the company since 2019, ushered Subway through its sale to private equity firm Roark Capital and is the chain's first CEO outside its founding families, CNN reported.
He will be replaced as interim CEO by Carrie Walsh, Subway's president of Europe, Middle East and Africa, while the company searches for a permanent successor, Subway said.
Chidsey is among a string of restaurant chain CEOs who have been replaced this year, including at Starbucks, Wendy's, Papa John's and Shake Shack.
Under Chidsey, Subway launched initiatives to change its menu and announced it would freshly slice deli meat rather than use pre-sliced meat at factories, CNN reported.
The chain also has been closing stores, shuttering 400 of them in the U.S. last year, the report said.
This month, Subway ended its $6.99 value meal deal, a promotion that launched Nov. 3, but failed to reach expectations, Restaurant Business reported.
"The Meal Deal was designed to help drive a lift in traffic, sales and, ultimately, restaurant-level profitability, and delivered on these objectives during the market test," a message from the chain to franchise operators, obtained by Restaurant Business, said.
"While the national Meal Deal promotion is delivering the expected number of daily redemptions, overall the promotion is not driving the anticipated results," it said.
The offer will be shifted online and will run through Jan. 5.
Chidsey, who will move into a consulting role with the company as it goes through the CEO search, had high praise for Walsh.
"It has been a privilege to lead Subway through a period of exciting change, and I am so proud of what the team has achieved together," he said.
"I've worked closely with Carrie over the past five years, and I've witnessed firsthand her deep understanding of what it takes for a global brand to grow and evolve. Combined with her steadfast commitment to Subway and its franchisees, I'm confident Carrie is the right leader to shepherd Subway through this transition as we continue to enhance our position as a leading global restaurant brand," he said.
Subway credited Chidsey for his guidance during his tenure.
"Under John's leadership, Subway has been transformed. His vision and passion have set a high standard that will continue to guide the brand for years to come," Clay Harmon, a member of the Subway Board of Directors, said.
