MILFORD: Eight months after appointing Karlin Linhardt as Subway's North American senior marketing vice president, , the company has made an about face.
Linhardt a former McDonalds [NYSE: MCD]marketing executive came to the company in April from the consulting firm Acenture [NYSE: ACN] to help lead a sales turnaround. Karlin reportedly tendered his resignation amid what some describe as an “uprising” among franchises of his marketing plans, emphasizing discounting.
Linard’s exit was first reported by the New York Post, which claimed that there was a "nationwide revolt" by franchisee owners over his plans to revive a $4.99 footlong promotion next month. Many of the franchises have been struggling over profitability and were concerned that they couldn’t sell the promotion profitably.
Subway with 25,000 stores in the US, sees McDonalds as a chief competitor and the low price sub promotion was aimed at the success of the hamburger chain’s dollar menu promotions.
Subway sales have reportedly fell nearly 2% last year to a franchise wide sales of $11.3 billion. According to Technomic a food service consulting company, it is the only major chain that had a backwards year.
In 2015 subway launched a Founded o Fresh promotion to move the company away from discounting and to re-emphasize the quality of the food. The company apparently lost ints nerve as sales stagnated and began a $6 sub promotion in early 2016.