Subway announced Tuesday that CEO John Chidsey will retire at the end of 2024.
Carrie Walsh, president of Europe, Middle East, and Africa (EMEA), will serve as interim chief executive while the sandwich giant searches for a permanent replacement.
Chidsey was announced as CEO in November 2019. Before that, Subway hadn’t had a permanent chief executive since 2018 when Suzanne Greco retired. He was also the chain’s first CEO outside of the founding family. Chidsey previously worked as Burger King’s CEO in the late 2000s.
He will work as a consultant to ensure a smooth leadership transition.
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“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,” Chidsey said in a statement. “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.”
The announcement comes five months after Roark Capital closed its reported $9.6 billion purchase of Subway in April.
Under Chidsey’s tenure, Subway managed through multiple menu transformations. In July 2021, the company introduced 11 new and improved ingredients, six fresh or returning sandwiches, and four revamped signature options. The following year, Subway unveiled its Subway Series, a lineup of new signature sandwiches that can be ordered by name or number. The brand then released new Deli Hero sandwiches made with freshly cut meat in 2023; the chain paid more than $80 million to deploy meat slicers in restaurants nationwide.
Subway, which has nearly 37,000 restaurants worldwide, also shifted its thinking around unit growth. For decades, the company preferred to be the only concept within a franchisee’s portfolio and wanted restaurateurs to have a small footprint. The chain now prioritizes well-capitalized, multi-brand operators to acquire stores and build out trade areas. However, U.S. growth has been a struggle. Domestically, unit count has declined by roughly 7,000 shops since the beginning of 2016. The majority of unit expansion is coming internationally. In fact, Subway has more than 10,000 restaurants in its international pipeline from deals struck over the past three years. These locations are the result of more than 20 master franchise agreements.
Thousands of stores have been remodeled with the Fresh Forward design released in 2017. Earlier this month, the company unveiled an updated Fresh Forward 2.0 prototype with vibrant décor elements, bold wall graphics, localized messages and signage, elevated lighting, and warmer wood tones.
In connection with this prototype, Subway is also testing self-service kiosks, order-ready screens, and kitchen display systems. It’s the next step in the brand’s digital journey after refreshing its app and releasing a new loyalty program. Global and North American digital sales increased double digits in 2023.
“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, member of the Subway Board of Directors, said in a statement. “Carrie is uniquely qualified to lead Subway through this transition, bringing a blend of expertise in global operations, brand innovation and digital transformation, which will bring continuity and support Subway’s next chapter.”
Subway hired Walsh in 2019 as CMO of North America. She worked as global CMO for about a year and a half before becoming president of EMEA in August 2023. In her latest role, she oversaw operations, finance, marketing, and development across 50 countries and territories.
“I am honored to step into the role of Interim CEO, continuing to drive key initiatives to help boost franchisee profitability and delight our guests through innovation,” Walsh said in a statement. “Through a collaboration with the Subway leadership team, employees and our valued franchisees, we will keep elevating the Subway experience and deliver fresh, quality food to more guests around the globe.”
