John Chidsey, the retired CEO, had no plans to return to work. However, he couldn’t resist when Subway approached him. During an interview at the Yahoo Finance Invest conference with Brooke DiPalma, Chidsey discussed why he accepted the role of running Subway and his strategies for addressing the challenges the company faces.
One of the main challenges Subway encounters is the changing habits of consumers. Chidsey acknowledges this issue and shares his plan to adapt to these changes. He believes that Subway’s healthy menu puts them in a favorable position to cater to the evolving tastes of consumers worldwide. With its global footprint, Subway is one of the few major restaurant chains that can thrive in this space.
When asked about the potential impact of economic headwinds on consumer spending, Chidsey acknowledges that during the initial stages of an economic downturn, people tend to trade down from more expensive dining options to more affordable ones. This shift can benefit Subway and other fast casual or casual dining establishments. However, Chidsey recognizes that this trend cannot continue indefinitely and eventually affects same-store sales numbers. Nevertheless, he views the initial period as a positive tailwind for the company.
Chidsey also sheds light on the recent sale of Subway to private equity firm Roark Capital. Though he doesn’t delve into specific details, his comments suggest that the deal was strategically beneficial for the company.
For more insights from the Yahoo Finance Invest conference, click here.
