100’s of Subway Sandwich Shops Are Closing Because of One Person

The last few years have been somewhat turbulent for the international restaurant/deli chain Subway. The arrest and conviction of their former spokesman, Jerry Fogel, on charges related to lewd imagery and child exploitation, cast a shadow over the brand. Fogel, who had been a significant part of Subway’s marketing, has been in prison since his conviction, causing further controversy with his attempts to secure release. However, the negative publicity surrounding Fogel has not completely deterred customers from patronizing Subway, known for offering healthier options compared to fast-food giants like Burger King and McDonald’s. At Subway, customers appreciate the ability to customize their sandwiches, choosing the type of bread and fillings according to their preferences.

Despite its continued popularity for healthier food choices, Subway has faced operational challenges, leading to the closure of hundreds of locations. Approximately 900 branches were shut down in 2018, followed by an additional 500 closures. This downsizing reflects broader issues within the company, including dissatisfaction among franchise owners.

Franchisees have expressed frustration with Subway’s leadership, particularly under CEO Suzanne Greco, who started working at Subway in her youth. Many franchise owners believe that Greco failed to provide adequate support and drive growth for the company. A survey conducted by Business Insider of the 25,800 Subway branches in America revealed that one-third of them are not profitable, highlighting the extent of discontent among franchisees. According to the survey, there is a consensus among industry insiders that Greco should not lead the company, citing her approach to dealing with franchises as dismissive. Following these challenges and criticisms, Greco has decided to retire, and Trevor Haynes, the chief business development officer, has been appointed as the interim CEO, marking a new chapter for Subway as it seeks to navigate its future.

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