Yesterday I posted an answer for the question below.
The answer was deleted after 1 day by Andrew Barber
Could Andrew or anyone else please provide me with some feedback on the reason for the deletion? The answer was based on my own actual experience and solution of the problem described in the question. Was my explanation not clear enough? Some feedback would really be appreciated so I can improve the above and subsequent answers.
For all those who can't see deleted answers on Stackoverflow, here is the text of the original (now deleted) answer:
Had the same problem with another yootheme. Submenus did not show on hover.
What fixed it for me:
Go to the Module Manager, edit your menu module.
In the Details section of the module, the first 3 items are:
-Title -Show Title Yes/No -Position
Changing the value of 'Position' fixed this for my setup. This value determines in what template position your menu module will be shown. In my case this value was set to 'menu'.
The dropdown list shows Template names, and below each template name a number of position items. The value 'menu' in various form showed up several times in my case, for example as a position of the Yootheme template, but also as a position at the bottom of the list, below the heading 'Custom Position'. In my case the value was set to Custom Position -> menu.
I changed this value, by going through the list and going to the positions listed under the Yootheme template. This showed a value called 'Menu [menu]' . I selected this value, saved the module settings, reloaded the page with the menu and submenu's showed up on hover!
Would appreciate it if anyone could explain how Joomla generates the list of positions under the heading 'Custom Position' in the drop-down list? Is this collected from other template positions somehow?