Subway abandoned A recently shuttered Subway in Brooklyn, New York. Kate Taylor

  • Subway’s public-relations crises and inability to keep up with trends are merely the tip of the iceberg of the company’s problems.
  • Franchisees say executives have been slow to innovate and have made decisions that are killing business.
  • Divisions are present in the company’s headquarters, as seen with the ouster of the head of US marketing.
  • Three franchisees told Business Insider they thought the chain needed to replace top executives, including CEO Suzanne Greco, the younger sister of the chain’s cofounder Fred DeLuca.

Subway is in crisis.

National sales and traffic figures dropped in 2017, according to multiple people with knowledge of the situation, marking the chain’s fourth consecutive year of declining sales.

The sandwich chain’s US store count fell by 909, losing almost three times as many locations as the year before. One franchisee estimated that up to one-third of Subway’s locations could be unprofitable, citing internal conversations and national sales numbers.

As trends change, Subway struggles to attract customers as a compelling healthy option — especially after scandals surrounding the chain’s former spokesman Jared Fogle.

However, conversations with more than 30 current and former franchisees, employees, and others with knowledge of Subway’s current predicament revealed problems that went beyond larger restaurant-industry trends.

According to insiders, the factors driving customers away from the chain are deeply tied to internal conflicts within the company. With disagreements between corporate headquarters and franchisees, franchisees say they’re stuck bearing the brunt of the damage.

As a result, franchisees are calling for major changes at the company. Three franchisees from different US regions told Business Insider they thought the company needed new leadership — specifically, a new CEO.

“I have sadly watched my peers close their doors only to see Subway resell their investment to others with no benefit to them,” one franchisee told Business Insider. “It is inevitable that I will do the same in the near future.”

She continued: “I wish we had an advocate. This was my retirement, and now, well, it’s over.”…..more here