John Chidsey, who guided Subway through the pandemic and then its sale to Roark Capital, is stepping down at the end of the year, the company announced on Tuesday.
The fast-food sandwich giant named Carrie Walsh, president of Subway in Europe, the Middle East and Africa, as interim CEO while a permanent replacement is found.
Chidsey’s departure ends an active-yet-controversial five years at the helm of the sandwich chain. He joined the company in 2019, only the third CEO in the chain’s history. Yet he arrived after a one-year period in which the company had no named chief executive.
At the time, the company was still reeling from challenges that began in 2015, including the death of founder and longtime CEO Fred DeLuca and the imprisonment of longtime spokesman Jared Fogle. Some 7,000 of the chain’s U.S. restaurants, and about 2,000 international units, have closed since then.
Subway cut corporate staff, moved much of its functions to Miami—where Chidsey lives—and underwent wholesale changes, including numerous changes to the company’s menu, an aggressive remodel program and the introduction of various digital efforts. The company also rebuilt international operations.
Carrie Walsh has worked with Subway since 2019.
The result stemmed the decline in average unit volumes and slowed closures—while international development agreements returned that segment to growth.
But discounts and changes to the company’s franchise agreements irked operators, who own each of the chain’s 37,000 global restaurants.
Last year, Subway was sold to Roark Capital for $9.6 billion—even though Roark, through Inspire Brands, owns rival Jimmy John’s.
“Under John’s leadership, Subway has been transformed,” Clay Harmon, a member of Subway’s board of directors, said in a statement. “His vision and passion have set a high standard that will continue to guide the brand for years to come.”
Walsh has been with Subway since 2019, initially as global chief marketing officer. She would later take over as head of Subway’s second-largest region, where she oversaw operations, finance, marketing and development activity in 50 countries.
“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,” Chidsey said in a statement. “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.”
Chidsey will transition to a consulting role to ensure a seamless transition, Subway said. He will focus on guiding the company’s international growth strategy and master franchisee relationships.
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