In March of 2008, Subway launched a value deal nationwide that already had explosive success in a number of the chain’s South Florida stores. The introduction of the $5 footlong deal across the U.S. was intended to be an answer to the $1 value menus of industry standard-bearers such as McDonald’s and Wendy’s and a new direction for the brand in the wake of its advertising success with Jared Fogle.
He looks more like a tenured professor than a zealous consumer advocate. He is soft spoken with round wire glasses and a navy sports coat, a warm smile and gray curly hair. He is Michael Jacobson, executive director and co-founder of the Center for Science in the Public Interest (CSPI), and at first glance it looks like he’s more likely to serve up a warm cup of tea than a lawsuit.
During boon times, management energy is rarely spent worrying about violations of top-level employment agreements when hiring new executives. But when a downturn comes, companies are watching their backs.
Consider Starbucks Corp.’s well-publicized lawsuit against a former division head for breaching a noncompetition agreement to join rival coffee chain Dunkin’ Brands Inc. The ex-Starbucks executive, Paul Twohig, agreed to settle out of court, paying his former employer $500,000 and subsequently delaying his start date, Starbucks disclosed.