One of the fastest-growing franchises in the world, Subway, was not doing so well for the past years. Suzanne Greco the CEO of one of the fastest growing fast food chain in the world announced her retirement as the CEO of Subway after 45 years with the brand on 2 May 2018.
Subwayfounded more than 50 years and it is not only a franchise chain, it has more restaurants with about 43,700 in global. Subway shuts down more than 900 U.S. stores in 2017 due to heavy financial losses. According to the report, around 500 more stores are expected to shut down if the business continues to react poorly. The report said that out of 25,800 stores in the U.S., more than one-third of them are not profitable. The source added that many franchisees believe that one of the main reasons boil down to Suzanne’s poor leadership which is crucial to turn the Subway crisis’ around.
CEO vs franchisee
Suzanne, who is also the sister of the co-founder Fred DeLuca, was appointed as the CEO in January 2015. It was reported that early this year, many franchisees were not satisfied with her guidance. One of the franchisees commented that the people around Greco are unable to push and challenge her to pull through during tough situations. Many believe it is better if Greco is to be replaced.
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Those in the same industry think that Greco is not suitable to be the group of CEO. Meanwhile, Trevor Haynes, the chief business development officer, will tentatively take over Greco’s position. Suzanne will officially retire on 30 June 2018 and will then serve as the company’s senior adviser.
Source from: Business Insider
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