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Subway reportedly plans to move some corporate divisions to Miami from its longtime headquarters in Milford, Conn.

Subway plans to move some corporate functions to Miami

‘Consumer-facing’ departments like culinary and marketing will move from Milford, Conn., headquarters in 2022, reports say

Subway is planning to move several of its corporate divisions from its longtime headquarters in Milford, Conn., to Miami, according to numerous press reports.

The quick-service brand told Connecticut staff members last week that it would moving all of its “consumer facing” businesses to Miami, including culinary, marketing and “global transformation.”

“A Miami presence allows us to keep our finger on the pulse of more cultural conversations and the evolving tastes of the modern consumer,” a Subway spokesperson said Monday.

The move is expected to take place in 2022, the New York Post reported. 

In November 2019, Subway named John Chidsey as CEO. The former chairman and CEO of Burger King Holdings Inc. maintains a residence in Florida.

“With its dynamic business climate, diverse population and multicultural influences, it is the ideal place to transition some of our consumer-facing roles,” the Subway spokesperson said.

“Miami is also home to the Independent Purchasing Cooperative Inc., an independent Subway franchisee-owned and operating purchasing cooperative in the United States and Canada,” the company noted. “The proximity will enable even stronger integration between us and our supply chain.”

Subway said a majority of its workforce would remain at the Milford headquarters, including finance, legal, development, human resources and business services.

The quick-service brand reduced its corporate workforce last year with about 300 layoffs in February and 150 more as the COVID-19 pandemic intensified in May.

Connecticut State Sen. James Maroney, who represents Milford, issued a statement in the wake of the Subway reports, saying: “It is disappointing to hear they will be moving some positions to Florida. Unfortunately, it is a trend for many companies to relocate employees to be closer to where the CEO lives and it’s unfortunate there will be more layoffs as units will close here. The good news is: A majority of employees will remain in Milford.”

According to the most recent Nation’s Restaurant News Top 200 census, Subway had estimated U.S. systemwide sales of $10.2 billion in the fiscal year ended December 2019, down from $10.4 billion in the preceding year. The brand ended 2019 with an estimated 23,801 U.S. units, all franchised, down from 24,798 in the preceding year.

Update March 15, 2020: This story has been updated with comments from a Subway spokesperson.

Contact Ron Ruggless at [email protected]

Follow him on Twitter: @RonRuggless


TAGS: Workforce
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