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Subway Franchisees Reportedly Hate New CEO's Promotional Stance

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Subway Franchisees Reportedly Hate New CEO's Promotional Stance

Fast-food sandwich chain Subway is set to introduce new deals in January that place additional pressure on already struggling franchisees, according to The New York Post.

Subway's Promotional CEO

Subway's advertising agency discussed several discounts the restaurant is set to introduce in a series of private and regional conference calls, The Post's sources said.

Some of the upcoming promotions include slashing the price of a 6-inch oven-roasted chicken sandwich from $4.25 to $2.99. In total, six sandwiches could be discounted under the leadership of John Chidsey, who was named CEO on Nov. 18.

Chidsey brings fast food experience to the table and previously served as the CEO of Burger King.

Yet his tenure there was controversial, as he fought with franchisees and pushed similar promotions, including a $1 double cheeseburger, the Post said. 

Franchisees sued Burger King after store operators voted on two separate occasions to reject the promo.

Chidsey was not only fired as CEO when the burger chain sold itself to 3G Capital, but the private equity giant fired every executive who worked with franchisees, a source told the Post. 

Subway Franchisees Speak Out

One franchise owner posted in an open forum for Subway franchisees that the promotion implies owners will be "giving away the little profits we have."

Another Subway franchisee separately said the amount of information available is "only half the story." It is possible Chidsey "learned from his failures" at Burger King, they told the Post. 

Does It Even Matter?

Even if Subway offers attractive promotions will it be enough to draw in clients?

The fast food segment is dominated by trends like fried chicken sandwiches, which Subway doesn't offer.

Competitors like Jimmy John's, Jersey Mike, Potbelly, and others are more likely to be found in A-list malls while Subway actually closed more than 1,000 stores in the U.S. last year, according to CNN.

Related Links:

Subway Partners With Beyond Meat To Trial Beyond Meatball Sub

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Photo by Ian Poellet via Wikimedia

Posted-In: Burger King cnn Fast Food John ChidseyNews Restaurants Media General Best of Benzinga

 

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