Subway is a restaurant franchise that sells submarine sandwiches as well as salad. It was formed in August 1965 and was formerly known as ‘Pete’s Super Submarines.’ It is the fastest-growing franchises globally and has centers in over 100 countries. In the United States, it has 23,928 locations. Subway is also the largest restaurant operator and the largest single bar-restaurant chain in the world.
Inception
In 1965, Fred DeLuca started Pete’s Super Submarines in Connecticut. In 1966, she teamed up with Peter Buck and created Doctor’s Associates Inc. It was a holding company with a motive for paying the medical school tuition fees for the doctorate in physics for Buck. They renamed the organization as ‘Subway’ in 1968.
They went on to create a Subway store in 1978 in Fresno, California. Their first-ever location outside North America was in Bahrain in 1984. In 1996, they came up with another store in the United Kingdom. Following that, Subway started opening stores in the Walmart supercenter and soon went on to increase its number against the rival McDonald. Subway has consistently featured in the list of Entrepreneur magazine’s top 500. By 2010, it went on to become the world’s largest fast-food chain. It adopted a new logo in 2017, and as of June 2017, the restaurant franchise has approximately 42,000 locations in more than 110 countries.
Evolution
The growth of Subway is primarily due to the number of core products. Apart from having a submarine sandwich, it also sells paninis, baked goods, salad, and wraps. It is known for selling breakfast sandwiches, flatbread, and English muffins. In 2006, the company came up with “personal pizzas.” In 2017, Subway came up with different varieties of paninis on the menu. There was also Chipotle Cheesesteak sandwich for a restricted time.
The menu of Subway has varied significantly from one region to another. It introduced brownies and bread without gluten in 2011 in Texas. In the same year, Subway also reduced the salt content in the sandwiches by 15%. In countries like Ireland and the United Kingdom, the company has reduced 33% of salt content. Subway is endorsed by Heart Research UK for “Low Fat” food. When it comes to fast-food advertising, Subway is next behind McDonald’s. In 2011, the company spent $516 million in advertising. It focused on the slogan “Eat Fresh” and came up with a specification “Subway Sandwich Artists.”
Awards & Achievements
Subway has locations across the world, and it employs more than 30,000 individuals. In 2019, Subway won the Roy Morgan Customer Satisfaction Award. It is also the winner of the 2019 Best Company Work-Life Balance. In 2016, Subway won the Cignti’s Most Innovative Award in the category of ‘Quality Assurance Practices.’ By establishing a popular name, Subway has also featured in multiple films and television shows across the world.
Net Worth of Subway in 2024
As of January 2024, Subway’s net worth is an estimated $15 billion. One would have never imagined that a company that was started with $1000 went on to become a global brand. Subway does not have a single location on its own but collects revenue from each franchise at 8%. The company is owned 50% each by DeLuca and Buck. It has 60% of the quick-service sandwich market in the United States.
DeLuca used to oversee the daily operations of the company until his death in 2015. The Subway Group of Companies includes Subway IP Inc., Franchise World Headquarters, Subway Franchisee Advertising Fund Trust, Subway International BV, and FWH Technologies. It has a solid social media presence, and John Chidsey serves as the chief executive officer of the company. Subway has its headquarter in Milford, Connecticut, and has committed for a cage-free egg supply chain.