Subway
shakes up its CMO roster and agencies to solve the brand’s ‘emotional
resonance’ problem
By Brian
Bonilla and Ewan Larkin
Subway is
overhauling its U.S. marketing and agency roster, parting ways with its global
chief marketing officer, appointing a new U.S. CMO, and shaking up both its
media and creative accounts, Ad Age has learned.
The changes
come as Subway aims to fix what an agency-focused request for information
document obtained by Ad Age describes as a deeper brand problem.
“Subway falls
short on emotional resonance and brand distinctiveness; the brand is more known
than felt,” the brief stated.
CMO shuffle
at Subway
The sandwich
giant has amicably parted ways with its global CMO, Greg Lyons, just over a
year after he was appointed to the role, according to two people familiar with
the matter. Subway CEO Jonathan Fitzpatrick, named to the role in July 2025,
eliminated the global CMO position after changing the organization’s structure
to a more regional one, according to sources. Lyons could not be reached for
comment. Subway did not return multiple requests for comment.
Subway hired
Jeff Klein, the former marketing leader-turned-president of Popeyes, earlier
this year as a senior VP of marketing. Klein will now serve as U.S. CMO. David
Skena, who was appointed North America CMO eight months ago, will now serve in
a chief strategy and commercialization role, according to three people close to
the situation.
Before his time
with Popeyes, Klein served as the CMO of Little Caesars Pizza and was a
long-time PepsiCo marketing executive. He will now report to Damien Harmon,
Subway’s North America president, sources said.
Subway’s
ongoing agency changes
Along with the
CMO shuffle, Subway has awarded Omnicom its U.S. media and CRM accounts
following a review, Ad Age has learned. Dentsu’s Carat most recently held the
media account.
Subway is now
launching a U.S. creative review, with an RFI going out this week, according to
four people familiar with the matter. The creative account, which includes
creative and social duties, is said to be worth around $10 million in fees,
according to a source close to the situation.
Subway brought
in Publicis Groupe’s Leo New York to handle U.S. creative in April 2025,
replacing Dentsu Creative. It wasn’t immediately clear if Leo is participating
in the creative review, which is being conducted by SRI, according to multiple
people.
Earlier this
year, Leo launched a campaign showcasing a promotion for Subway’s Sub Club
loyalty program in which customers can earn a free footlong sandwich after
three purchases of a sandwich of the same size.
However, free
sandwich promotions were removed from the program following complaints from
Subway franchisees about the deal being too generous and not cost-effective.
Dentsu also
most recently handled social for Subway and played a significant role in
facilitating the advertising effort around Subway’s collaboration with the 2025
movie “Happy Gilmore 2.”
Dentsu referred
to the client for comment. Leo declined to comment. Omnicom referred comment to
Subway, and SRI wasn’t immediately available for comment.
Subway’s U.S.
measured media spending declined from $242 million in 2024 to $208 million in
2025, according to MediaRadar. Subway is the 10th largest U.S. restaurant
chain, according to Technomic, with 2025 sales of $8.97 billion, down 5.7%.
Subway’s
brief focuses on brand reinvigoration
The company’s
largest challenge appears to be rebuilding its cultural and emotional
relevance, especially with younger consumers, according to the RFI document.
Subway “needs to re-establish brand meaning for a new generation of QSR
consumers” by creating “a clear, ownable story about why Subway specifically is
the better-for-you, fair-price sandwich choice for a busy life,” according to
the brief.
This includes
capitalizing on its first-ever value menu, launched in late April.
Subway’s recent
value offerings are positioned as evidence that the company is “finally showing
up with options that deliver value and everyday access,” the brief stated. But
it also notes that the company needs to convince both existing and new customers
that “Subway is delicious, convenient and affordable.”
“The current
advertising has been working campaign-by-campaign rather than building a
long-term, ownable brand platform,” the RFI stated.
Subway sees its
biggest competitive pressure not just from rival sandwich chains, but from the
broader quick-service restaurant landscape, where giants like McDonald’s,
Burger King, Taco Bell and Wendy’s continue to dominate consumer traffic and
volume. At the same time, emerging sandwich-focused competitors are beginning
to gain momentum. The RFI identifies Jersey Mike’s as Subway’s No. 1 threat on
“brand momentum and premium perception,” while Jimmy John’s was cited as a
growing competitor built around “speed and convenience.”
Subway has
faced declining U.S. store counts, intensifying competition and franchisee
pressure during the last decade.
The company,
which in 2024 completed its sale to affiliates of private equity firm Roark,
has now closed U.S. locations for 10 consecutive years, shrinking from more
than 27,000 domestic restaurants in 2015 to fewer than 19,000 today, according
to QSR Magazine. In 2025, Subway shuttered 729 restaurants.
What Subway
seeks in an agency
Subway is
seeking a large-scale agency with the “bench strength to handle [its] calendar
volume,” which includes “six marketing windows + test markets,” according to
the RFI.
Subway also
wants an agency partner with deep experience in fast-paced retail and QSR
marketing, particularly around brand reinvention, social-first creative and
managing large-scale integrated campaigns.
The chain is
also prioritizing Hispanic-market expertise “not as a translation function but
as a cultural capability,” alongside in-house or partner-led production
capabilities for social, creator and limited-time offer content.
The company
also signaled in the document that it wants senior-level involvement throughout
the relationship, including “CCO/senior creative engagement,” that won’t just
“pitch-and-disappear.”
Contributing:
E.J. Schultz and Jon Springer