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Subway IP LLC,[8] doing business as Subway, is an American multinational fast food restaurant franchise that specializes in submarine sandwiches (subs) and wraps. It was founded by Fred DeLuca and financed by Peter Buck in 1965 as Pete's Super Submarines[9] in Bridgeport, Connecticut. After several name changes, it was renamed Subway in 1972, and a franchise operation began in 1974 with a second restaurant in Wallingford, Connecticut.[10] It has expanded to become a global franchise.
Subway offers an array of topping choices. The longtime Subway slogan, "Eat Fresh", is intended to indicate the fresh ingredients. It was the fastest-growing franchise in the world in 2015[11] and, as of September 2023, had over 37,000 locations in more than 100 countries and territories. More than half its locations (21,796 or 58.1%) are in the United States.[3][12][13] It also is the largest single-brand restaurant chain, and the largest restaurant operator in the world.[14][15][16][17] Its international headquarters is in Shelton, Connecticut, with a second headquarters in Miami, Florida.
In 1965, Fred DeLuca borrowed $1,000 from his friend Peter Buck to start "Pete's Drive-In: Super Submarines" at 3851 Main Street[18] in Bridgeport, Connecticut, and in the following year, they formed Doctor's Associates Inc. to oversee operations of the restaurants as the franchise expanded.[19][20] The holding company derives its name from DeLuca's goal to earn enough from the business to pay tuition for medical school, as well as Buck's having a doctorate in physics.[21] In 1968, the sandwich shop was renamed Subway.[19] In 1974, a franchise operation began with a restaurant in Wallingford, Connecticut.[10]
The first Subway on the West Coast was opened in Fresno, California, in 1978.[19] The first Subway outside of North America opened in Bahrain in December 1984.[22] The first Subway in Canada opened in St. John's in 1986.[23] The first Subway in the United Kingdom opened in Brighton in 1996.[24]
In 1989, Subway acquired Cajun Joe's, a Boston, Massachusetts-based chain which sold fried chicken and Cajun cuisine.[25][26] The venture proved unsuccessful, and most were closed by the end of the 1990s.[27]
In January 2015, Suzanne Greco became president and CEO. Her brother Fred DeLuca, the company's first CEO, had been ill for two years and died of leukemia in September 2015.[32] In 2016, Subway closed hundreds of restaurants in the U.S., experiencing a net loss in locations for the first time. However, with 26,744 locations, it remained the most ubiquitous restaurant chain in the U.S. (with McDonald's in the #2 spot).[33]
In July 2017, Subway unveiled redesigned restaurants, dubbed 'Fresh Forward',[34] with new company branding.[35] The company installed self-order kiosks, USB charging ports at tables, and added new menu items.
In November 2023, the Federal Trade Commission announced it was looking into investigating the deal as it would possibly give Roark a monopoly in the sandwich shop industry via the firm's existing ownership of Subway's competitors McAllister's Deli & Jimmy John's.[43] On April 30, 2024, Roark officially acquired Subway after the FTC determined that Roark wouldn't gain an unfair advantage.[44]
On March 19, 2024, Subway signed a 10-year deal with PepsiCo that begins on January 1, 2025, ending the restaurant chain's partnership with The Coca-Cola Company that was first signed in 2003 and went into effect in 2005.[45][46] Subway's international locations had already gone back to serving Pepsi products in 2018.[46] Pepsi previously had a deal with them back in 1988 that lasted until the Coca-Cola switchover.[47]
As of 2024[update], Subway was owned by the private equity group Roark Capital.[48] Prior to that, Subway had been owned by its founding families for six decades. In 2019, John Chidsey joined Subway as the first chief executive officer outside of the DeLuca family.[49]
Subway's international headquarters are in Shelton, Connecticut, the US, with five regional centers supporting the company's international operations. The regional offices for European franchises are located in Amsterdam (Netherlands); the Australian and New Zealand locations are supported from Brisbane (Australia); the Asian locations are supported from offices in Beirut (Lebanon) and Singapore; and the Latin American support center is in Miami (US).[54]
The startup cost of owning a Subway franchise is significantly lower than competitors, beginning at around $200,000 to $500,000. However, Subway franchisees also pay some of the highest percentages of profits (around 12.5%) back to Subway compared to competitors.[55]
As of February 2023, Subway had approximately 37,000 locations in more than 100 countries, all independently owned and operated by a network of franchisees.[56] Subway has the highest concentration of locations in North America with more than 20,000 in the United States, 2,881 in Canada, and 758 in Mexico, as of 2019.[57][56] This was almost as many U.S. locations as McDonald's and Starbucks combined, as of 2018.[20] Outside North America, the countries with the most locations are Australia (1,215), Brazil (1,643), and the United Kingdom (2,195), as of 2019.[57]
Subway's core product is the submarine sandwich (or "sub"). It also sells wraps, salad, paninis, and baked goods (including cookies, doughnuts, and muffins). Subway also sells breakfast sandwiches, English muffins, and flatbread. In 2006, "personal pizzas" debuted in some US markets. These are made to order (like the subs) and heated for 85 seconds. Breakfast and pizza items are only available in select locations. In November 2009, Subway signed a deal to serve exclusively Seattle's Best Coffee coffee as part of its breakfast menu in the US.[58]
Subway's best-selling sandwich,[59] the B.M.T. (short for "Biggest, Meatiest, Tastiest"), contains pepperoni, salami and ham. It was introduced as a reference to Brooklyn-Manhattan Transit, connecting to the "subway" name.[60]
In April 2017, Subway announced the addition of paninis to its menu. Chipotle Steak & Cheese, Triple Cheese, Chicken Cordon Bleu, and Italian B.M.T. Melt were the four variations announced.[61] In September 2018, Subway debuted the Chipotle Cheesesteak sandwich for a limited time. Regional testing of a crispy chicken sandwich also began taking place in Arkansas.[62] In January 2024, Subway debuted Sidekicks, a new range of footlong baked goods in partnership with Cinnabon and Auntie Anne's.[63]
In 2006, the first kosher Subway restaurant in the United States opened in a suburb of Cleveland, Ohio in the Mandel Jewish Community Center of Cleveland. Former Subway spokesman Jared Fogle attended the opening. A press release stated, "With slight modifications, such as no pork-based products, and the use of soy-based cheese product, the menu is virtually identical to that of any other Subway restaurant."[64] Other openings soon followed, briefly making Subway one of the largest U.S. kosher restaurant chains.[65] At their peak, twelve kosher Subway locations were open in the U.S., including Kansas City and 5 in New York. As of 2023, only one kosher Subway remains, in Miami, FL. Franchisees who failed noted a lack of support from the parent location in advertising, higher costs of kosher food and supervision, the inability to remain open on Saturdays, and that customers who do not keep kosher prefer the original menu and prices.[66]
Subway opened its first restaurant in India in 2001 in New Delhi. In deference to Hindu beliefs, Subway restaurants in India do not serve beef products; on the other hand, the country's large number of vegetarians induced Subway's Indian outlets to offer a much-extended range of vegetarian options. As of January 2017, there were 591 Subway restaurants in 68 Indian cities.[3] On September 4, 2012, Subway opened its first all-vegetarian outlet on the campus of Lovely Professional University (LPU) in Jalandhar, Punjab.[67] On March 6, 2013, Subway opened its second all-vegetarian outlet also offering Jain food in Paldi, Ahmedabad.[68]
In 2011, Subway introduced gluten-free bread and brownies to some locations in Texas.[69] It also cut the salt content of its sandwiches by 15 percent in 2011.[70] In the United Kingdom and Ireland, Subway has reduced salt content across its entire range by 33% and has committed to further reductions, in line with government targets.[71] Subway's range of "Low Fat" subs is endorsed by the charity Heart Research UK.[72]
Subway used the advertising slogan "Eat Fresh" and focused on how its sandwiches were made from freshly baked bread and fresh ingredients, in front of customers to their exact specifications, by employees which Subway called "Subway Sandwich Artists".[74]
Subway ran a product placement campaign in the US TV series Chuck since its first season. As ratings dwindled in the second season, a campaign to "save Chuck" was launched for fans, encouraging them to purchase a footlong sub from Subway on April 27, 2009, the date of the season finale. Tony Pace, Subway's marketing officer, called it the best product placement the restaurant chain has done "in several years."[78]
Most Subway locations feature a promotion named "Sub of the Day" where a different submarine sandwich is featured each day of the week at a discounted price. In the past they had a monthly promotion that featured a specialty sub sandwich at a discounted price for the entire month.[80]
Beginning in January 2000, Jared Fogle was a national spokesman for the company in the US, giving talks on healthy living and appearing in advertisements. Fogle first came to attention in his native Indiana by claiming that he lost over 200 pounds (91 kg) in part by eating at Subway. After 2008, he was featured less often as the company marketed with more emphasis on its "5 dollar footlong" campaign.[81] Subway attributed between one-third and one-half of its growth from 1998 to 2011 to Fogle, the equivalent of a tripling in size.[82] Subway ended its relationship with Fogle in 2015 after he was charged with possession of child pornography and illicit sexual conduct with a minor. After pleading guilty in August 2015, he was sentenced to more than 15 years in federal prison three months later.[83][84][85]
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