Subway is moving some of its operations from Milford, Connecticut, to Miami, according to the company.

The new Miami office is scheduled to open in spring 2022. The New York Post reported consumer-facing departments will make the transition, such as culinary, marketing, and global transformation. Meanwhile, finance, legal, development, and human resources and business services will remain in Connecticut.

Subway said while there are planned staffing changes, the majority of the workforce will remain in Connecticut. It’s currently “working with affected individuals to provide the appropriate transition tools.”

“A Miami presence allows us to keep our finger on the pulse of more cultural conversations and the evolving tastes of the modern consumer,” the chain said in an email to QSR. “With its dynamic business climate, diverse population and multicultural influences, it is the ideal place to transition some of our consumer-facing roles.”

The Post noted some employees “would not be invited to Miami when the transition takes place in 2022.”

The potential layoffs would come after the chain cut about 300 jobs from its Milford headquarters in February 2020. At the time, Subway said streamlining and simplifying the business with a smaller workforce will help it react quickly to the changing needs of the business. A few months later, the chain laid off 150 more workers, including a little more than 100 at the headquarters. The brand said the COVID-19 pandemic forced it to “accelerate a restructuring plan for which we had been preparing.”

The company noted Miami is home to the Independent Purchasing Cooperative, which serves as the purchasing and services cooperative for Subway franchisees in the U.S. and Canada. The proximity will enable stronger integration with the supply chain, the company said.

Miami is also home to CEO John Chidsey, who’s worked as CEO since 2019. He spends more of his time in Florida as opposed to Connecticut, sources told the Post.

Subway, which had about 23,800 U.S. restaurants at the end of 2019, closed a net of 2,970 stores between 2017 and 2019, according to its FDD. In 2015, Subway had 27,103 locations—more than Burger King, Wendy’s, Taco Bell, and Pizza Hut combined. Additionally, the chain’s franchise revenues dropped from $866.7 million in 2017 to $838.5 million in 2019. In the same timeframe, net income went from $9.7 million to $7.5 million.

The company said in its FDD that “business has been materially and adversely affected by the outbreak of COVID-19, particularly in regions where the Company derives a significant amount of its revenues or profit or where its suppliers and business partners are located.”

“Although there are uncertainties surrounding the duration of the COVID-19 outbreak and its impact, and the Company cannot reasonably estimate the related financial impact to its full-year 2020 financial results at this time, management anticipates full support from shareholders of the Ultimate Parent,” the chain said in the filing.

Fast Food, Story, Subway