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Subway ‘Recalibrating’ Amid Jared Fogle Scandal

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That ‘whooshing’ sound you hear is actually the noise created by Subway bailing out on Jared Fogle as they also bail out their own ship, which is steadily listing to starboard (or is it port- I always get those confused).

The battered $11.9 billion sandwich chain has taken it in the shorts lately, as once-beloved pitchman Jared has plummeted from grace, pleading guilty to sex acts with minors and distribution of child porn. Subway, which most people don’t know is the largest restaurant chain if calculated by number of locations, with 44,000 locations globally, has been suffering from falling sales; down 3%.

The problems with Fogle are one issue, of course. In a memo obtained by Ad Age, Subway clearly had been distancing itself from Fogle virtually as soon as the news broke. In fact, the memo reportedly says that the company, through its service organization, emailed franchisees details on how to remove Jared from all materials. But many customers are reporting Fogle’s likeness is still present in many stores, which can’t help, that’s for sure. (Imagine you walk into the store with you 12-year-old daughter and see his perverted mug staring back at you…)

Industry experts have also suggested another part of the declining revenue problem relates to the company having abandoned it’s $5 Footlong value proposition, trying to promote more premium products. They also have failed at any level of innovation, which could be part of the problem, as well. The combined issues have caused Subway to quietly bring in a new Chief Marketing Officer, while on top of everything, they also are in the midst of a search for a new creative agency.

I know one thing; I’m extremely glad I’m not Jared Fogle!

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