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Subway is an American multinational fast food restaurant franchise that specializes in submarine sandwiches (subs),
wraps A wrap is a food dish made with a soft flatbread rolled around a filling. The usual flatbreads are wheat tortillas, lavash, or pita; the filling may include cold sliced meat, poultry, or fish, shredded lettuce, diced tomato or pico de gallo, g ...
, salads and
drink A drink or beverage is a liquid intended for human consumption. In addition to their basic function of satisfying thirst, drinks play important roles in human culture. Common types of drinks include plain drinking water, milk, juice, smoothies a ...
s. Subway was founded by 17-year-old Fred DeLuca and financed by Peter Buck in 1965 as Pete's Super Submarines in
Bridgeport, Connecticut Bridgeport is the List of municipalities in Connecticut, most populous city and a major port in the U.S. state of Connecticut. With a population of 148,654 in 2020, it is also the List of cities by population in New England, fifth-most populous ...
. After several name changes in the beginning years, it was finally renamed Subway in 1972, and a franchise operation began in 1974 with a second restaurant in Wallingford, Connecticut. Since then, it has expanded to become a global franchise. Subway serves an array of topping choices, allowing the customer to choose which toppings are included in their sandwich. The longtime Subway slogan, "Eat Fresh", is intended to indicate the fresh ingredients that are used in their sandwiches. It was the fastest-growing franchise in the world in 2015 and, as of June 2021, had 37,540 locations in more than 100 countries and territories. More than half its locations (21,796 or 58.1%) are in the United States. It also is the largest single-brand restaurant chain, and the largest restaurant operator in the world. Its international headquarters is in Milford, Connecticut.


History

In 1965, Fred DeLuca borrowed $1,000 from friend Peter Buck to start "Pete's Drive-In: Super Submarines" at 3851 Main Street in
Bridgeport, Connecticut Bridgeport is the List of municipalities in Connecticut, most populous city and a major port in the U.S. state of Connecticut. With a population of 148,654 in 2020, it is also the List of cities by population in New England, fifth-most populous ...
, and in the following year, they formed Doctor's Associates Inc. to oversee operations of the restaurants as the franchise expanded. 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.2008 Honorary Degree Recipients (Bowdoin, Office of Events and Summer Programs)
(archived 2008)
In 1968, the sandwich shop was renamed "Subway". In 1974, a franchise operation began with a restaurant in Wallingford, Connecticut. The first Subway on the
West Coast West Coast or west coast may refer to: Geography Australia * Western Australia *Regions of South Australia#Weather forecasting, West Coast of South Australia * West Coast, Tasmania **West Coast Range, mountain range in the region Canada * Britis ...
was opened in Fresno, California, in 1978. The first Subway outside of North America opened in Bahrain in December 1984. The first Subway in the United Kingdom was opened in
Brighton Brighton () is a seaside resort and one of the two main areas of the City of Brighton and Hove in the county of East Sussex, England. It is located south of London. Archaeological evidence of settlement in the area dates back to the Bronze A ...
in 1996. In 2004 Subway began opening stores in Walmart supercenters, and surpassed the number of McDonald's locations inside U.S. Walmart stores in 2007. Since 2007, Subway has consistently ranked in the '' Entrepreneur'' Franchise 500. In 2015, it ranked #3 on the "Top Global Franchises" list, and #1 as the "Fastest Growing Franchise". At the end of 2010, Subway became the largest fast food chain worldwide, with 33,749 restaurants – 1,012 more than McDonald's. In January 2015,
Suzanne Greco Suzanne Greco (née DeLuca, born 1957/58) is an American businesswoman, who was the president and CEO of the Subway fast food chain, from January 2015 to June 2018. She is the sister of Fred DeLuca, the co-founder of the company. Early life She ...
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. Subway reached a peak of 27,129 US locations on Jan. 1, 2016, but has since shrunk year after year, declining 22 percent by the end of 2021. 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). In July 2017, Subway unveiled redesigned restaurants, dubbed "Fresh Forward", with a new company logo. Features include self-order kiosks; USB charging ports at tables; and new menu items, including additional condiments, and bread made without gluten. In 2017, the chain closed more than 800 of its U.S. locations. In April 2018, the chain announced it would close about 500 more that year. According to Abha Bhattarai of '' The Washington Post'', this was a result of three consecutive years of falling profits and a 25 percent reduction in foot traffic in Subway stores since 2012. Franchisees also complained that the company's deep promotions further ate away at profits. Industry analysts such as Bob Phibbs, chief executive of the New York-based consulting firm Retail Doctor, said changing tastes on the part of consumers, who more frequently prefer locally sourced produce and hormone-free meat served by regional start-ups such as
Sweetgreen Sweetgreen (legally Sweetgreen, Inc., stylized as sweetgreen, previously swɘetgreen) is an American fast casual restaurant chain that serves salads. It was founded in November 2006 by Nicolas Jammet, Nathaniel Ru, and Jonathan Neman. In August ...
, especially in metropolitan areas, were the cause of the drop in Subway's sales, as well as the loss of market share to competitors. These include fast-casual eateries and sandwich shops such as Panera Bread, Au Bon Pain and Firehouse Subs, as well as food trucks and grocery stores that offer freshly made meals at competitive prices. In January 2018, Subway invested $25 million in a re-branding campaign targeting young consumers to revitalize its image and boost sales. In December 2020, Subway partnered with
ezCater ezCater is a Boston-based company that connects businesses with restaurants and caterers through an online marketplace. It was co-founded by Stefania Mallett, CEO, and Briscoe Rodgers, Chief Strategy Officer, in 2007. Method With its online p ...
to offer a new online catering platform. The company closed 999 more US Subway locations than it opened in 2019, a further 1,609 net in 2020 (in substantial part due to the
COVID-19 pandemic in the United States The COVID-19 pandemic in the United States is a part of the COVID-19 pandemic, worldwide pandemic of COVID-19, coronavirus disease 2019 (COVID-19) caused by SARS-CoV-2, severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). In the Uni ...
, and a net 1,043 outlets in 2021, leaving it with 21,147 locations.


Corporate structure

, the Subway Group of companies was organized as follows: *Subway IP Inc. is the owner of the intellectual property for the restaurant system. *Franchise World Headquarters, LLC leads franchising operations. FWH Technologies, LLC owns and licenses Subway's
point of sale The point of sale (POS) or point of purchase (POP) is the time and place at which a retail transaction is completed. At the point of sale, the merchant calculates the amount owed by the customer, indicates that amount, may prepare an invoice f ...
software. *Franchisors include Doctor's Associates Inc. in the U.S.; Subway International B.V.; Subway Franchise Systems of Canada, Ltd.; etc. *Advertising affiliates include Subway Franchisee Advertising Fund Trust, Ltd.; Subway Franchisee Advertising Fund Trust, B.V.; Subway Franchisee Canadian Advertising Trust; etc. *IPC Europe (Independent Purchasing Company Europe Limited), manager of the Subway franchisees and the Subcard loyalty scheme in European countries. Subway's international headquarters are in Milford, 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). 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.


Locations

As of June 2021, Subway has approximately 41,600 locations in 104 countries and territories, all independently owned. These locations are largely concentrated in North America, with 21,796 in the United States, 2,881 in Canada, and 758 in Mexico; this is almost as many U.S. locations as McDonald's and Starbucks combined. Outside North America, the countries with the most locations are Australia (1,215), Brazil (approximately 1,643), and the United Kingdom (approximately 2,195).


Products

Subway's core product is the submarine sandwich (or "sub"). In addition to these, the chain also sells
wraps A wrap is a food dish made with a soft flatbread rolled around a filling. The usual flatbreads are wheat tortillas, lavash, or pita; the filling may include cold sliced meat, poultry, or fish, shredded lettuce, diced tomato or pico de gallo, g ...
, salad, paninis, and baked goods (including
cookie A cookie is a baked or cooked snack or dessert that is typically small, flat and sweet. It usually contains flour, sugar, egg, and some type of oil, fat, or butter. It may include other ingredients such as raisins, oats, chocolate chips, n ...
s,
doughnut A doughnut or donut () is a type of food made from leavened fried dough. It is popular in many countries and is prepared in various forms as a sweet snack that can be homemade or purchased in bakeries, supermarkets, food stalls, and franc ...
s, and
muffin A muffin is an individually portioned baked product, however the term can refer to one of two distinct items: a part-raised flatbread (like a crumpet) that is baked and then cooked on a griddle (typically unsweetened), or an (often sweetened) ...
s). Subway's best-selling sandwich, the B.M.T. (short for "Biggest, Meatiest, Tastiest"), contains pepperoni, salami, and ham. The name originally stood for Brooklyn Manhattan Transit. Subway also sells
breakfast sandwich A breakfast sandwich is any sandwich filled with foods associated with breakfast. Breakfast sandwiches are served at fast food restaurants and delicatessens, sold in supermarkets, or commonly made at home. Different types of breakfast sandwich inc ...
es, English muffins, and
flatbread A flatbread is a bread made with flour; water, milk, yogurt, or other liquid; and salt, and then thoroughly rolled into flattened dough. Many flatbreads are unleavened, although some are leavened, such as pizza and pita bread. Flatbreads ran ...
. In 2006, "personal pizzas" debuted in some US markets. These are
made to order Build to Order (BTO: sometimes referred to as Make to Order or Made to Order (MTO)) is a production approach where products are not built until a confirmed order for products is received. Thus, the end consumer determines the time and number of ...
(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 Seattle's Best Coffee is a brand of wholesale coffee, ground coffee, and K-cup coffee that is owned by Nestlé. While Seattle's Best Coffee used to have coffeehouses in the United States, they appear to have closed down or have been converted to ...
coffee as part of its breakfast menu in the US. A 2009 Zagat survey named Subway the best provider of "Healthy Options" (in the "Mega Chain" category). Subway was also first in "Top Service" and "Most Popular" rankings. It placed second in "Top Overall", behind Wendy's. 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. 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.


Regional variations

Subway's menu varies between countries, most significantly where religious requirements relate to the meats served. In 2006, the first kosher Subway restaurant in the United States opened in a suburb of
Cleveland, Ohio Cleveland ( ), officially the City of Cleveland, is a city in the U.S. state of Ohio and the county seat of Cuyahoga County. Located in the northeastern part of the state, it is situated along the southern shore of Lake Erie, across the U.S. ...
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." Other openings soon followed, briefly making Subway one of the largest U.S. kosher restaurant chains. At their peak, twelve kosher Subway locations were open in the U.S., including Kansas City and 5 in New York. As of 2011, only five remained: in Cleveland, Miami, Los Angeles, and two stores in Maryland. 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. Subway opened its first restaurant in India in 2001 in New Delhi. In deference to
Hindu Hindus (; ) are people who religiously adhere to Hinduism.Jeffery D. Long (2007), A Vision for Hinduism, IB Tauris, , pages 35–37 Historically, the term has also been used as a geographical, cultural, and later religious identifier for ...
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. On September 4, 2012, Subway opened its first all-vegetarian outlet on the campus of
Lovely Professional University Lovely Professional University (LPU) is a private university located in Chaheru, Phagwara, Punjab, India, Punjab, India. The university was established in 2005 by Lovely International Trust, under The Lovely Professional University Act, 2005 (Pu ...
(LPU) in Jalandhar, Punjab. On March 6, 2013, Subway opened its second all-vegetarian outlet also offering Jain food in
Paldi Paldi is an area located in South Western Ahmedabad, India. Corporate offices and city centres of many national and international companies like ICICI Bank, Royal Bank of Scotland, Religare, Claris, Gujarat Gas are located within Paldi. It ...
,
Ahmedabad Ahmedabad ( ; Gujarati: Amdavad ) is the most populous city in the Indian state of Gujarat. It is the administrative headquarters of the Ahmedabad district and the seat of the Gujarat High Court. Ahmedabad's population of 5,570,585 (per t ...
.


Nutritional content

In 2011, Subway introduced gluten-free bread and brownies to some locations in Texas. It also cut the salt content of its sandwiches by 15 percent in 2011. 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. Subway's range of "Low Fat" subs is endorsed by the charity
Heart Research UK Heart Research UK is a national charity organisation in the United Kingdom. They fund medical research in to the prevention, treatment and cure of Cardiovascular disease, heart disease, as well as community projects aimed at improving the public’ ...
.


Marketing

Subway is the second-biggest fast food advertiser in the United States, behind only McDonald's. It spent US$516,000,000 on measurable advertising in 2011. 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". In 2005, Subway scrapped its "Sub Club" stamp promotion, citing a growing number of counterfeit stamps due to online auction sites and the increasing availability of high-quality printers. In November 2007, Subway's US commercials featured the cartoon character
Peter Griffin Peter Löwenbräu Griffin, born Justin Peter Griffin, is a fictional character and the main protagonist of the American animated sitcom ''Family Guy''. He is voiced by the series' creator, Seth MacFarlane, and first appeared on television, alon ...
(from FOX's ''
Family Guy ''Family Guy'' is an American animated sitcom originally conceived and created by Seth MacFarlane for the Fox Broadcasting Company. The show centers around the Griffin family, Griffins, a dysfunctional family consisting of parents Peter Griff ...
'') promoting its new Subway Feast sandwich. Subway has also used "instant win" games, based on the game Scrabble. Subway ran a
product placement Product placement, also known as embedded marketing, is a marketing technique where references to specific brands or products are incorporated into another work, such as a film or television program, with specific promotional intent. Much of th ...
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." To celebrate National Sandwich Day on November 3, 2015, Subway offered a Buy One sandwich, Give One sandwich free promotion.


Jared Fogle

Jared Fogle was a national spokesman for the company in the US from January 2000, 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 in part by eating at Subway. From 2008, he was featured less often as the company marketed with more emphasis on its "5 dollar footlong" campaign. Subway attributed between one-third and one-half of its growth from 1998 to 2011 to Fogle, the equivalent of a tripling in size. 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 A federal prison is operated under the jurisdiction of a federal government as opposed to a state or provincial body. Federal prisons are used for convicts who violated federal law (U.S., Mexico), inmates considered dangerous (Brazil), or those s ...
three months later. In December 2015, following the removal of Fogle from its marketing, Subway introduced a new marketing campaign, "Founded on Fresh". The campaign focuses on Subway's establishment and early history and features Fred DeLuca, as played by his son, Jonathan. The new campaign downplays the use of jingles and celebrity endorsements (besides "targeted" sports marketing) in favor of focusing on the qualities of its products and specific products. Chief advertising officer Chris Carroll explained that the focus on fat, calories, and weight loss were "what fresh used to be" and that the new campaign would focus more on the sourcing of Subway's ingredients, such as its phase-out of antibiotic-treated meat. Carroll also explained that the new strategy was being developed prior to the controversy involving Fogle.


Sponsorships

Subway has sponsored a number of sports events, particularly NASCAR races, including the
Subway 400 The Subway 400 was the second race of the NASCAR Winston Cup Series season until 2004, held a week after the Daytona 500. This 400-mile (644 km) annual race was sponsored by Subway and was held at North Carolina Speedway (''The Rock'') sinc ...
(2002–2004), Subway 500 (2003–2007),
Subway Fresh 500 The United Rentals Work United 500 is a NASCAR Cup Series stock car race held annually at Phoenix Raceway in Avondale, Arizona since 2005. It is one of two Cup Series races at the track, the other being the Season Finale 500. Chase Briscoe is th ...
(2005–2013) and the Subway Firecracker 250 (2009–2016). Subway sponsored the
Subway Super Series The CHL Canada–Russia Series is an annual junior ice hockey exhibition tournament, held between a select team of Russian players and all-star teams representing the Quebec Major Junior Hockey League, the Ontario Hockey League, and the Western ...
ice hockey tournament from 2009 to 2014.


$5 footlongs

In 2008, Subway began to offer all foot-long submarine sandwiches (excluding the premium and double-meat varieties) for five dollars, in the continental United States and Canada, as a "limited time only" promotion. "Five Dollar Footlongs" quickly became the company's most successful promotion ever. Upon the initial promotion's completion, customer response prompted Subway to create a permanent "$5 Footlong Everyday Value Menu" that offered some footlong sandwiches for $5. Since 2011, there has been a monthly rotating $5 footlong. In October 2011, a similar promotion was launched in the United Kingdom. Customers can buy one of nine subs and any drink for £3 (for a six-inch sub) or £5 (for a footlong). In 2012, San Francisco discontinued the five-dollar footlong promotion due to the higher cost of doing business in the city. From June 2014 to the end of that year, some Subway locations began discontinuing the $5 dollar promotion. On November 1, 2014, Subway discontinued the five-dollar footlong promotion, replacing it with the Simple $6 Menu which included a six-inch select with a drink and a choice of cookies or chips. In February 2016, all classic footlongs were declared to be set at a new cost of $6 each. In January 2018, the $5 promotion returned with a $4.99 footlong menu of five subs, at participating locations. In September 2018, Subway announced that they were going to discontinue the $5 footlong promotion. This would help them boost their franchise profits.


Italian Hero

In early 2017, Subway introduced its Italian Hero and advertised it with a campaign describing it as an authentic Italian
American American(s) may refer to: * American, something of, from, or related to the United States of America, commonly known as the "United States" or "America" ** Americans, citizens and nationals of the United States of America ** American ancestry, pe ...
sandwich. Created by their national creative agenc
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two comedic spots feature stereotypical Italian-American characters on and around the stoop of a tenement building, one including a cameo by sportscaster Dick Vitale. Another ad features Food Network's
Jeff Mauro Jeff Mauro (born July 24, 1978) is the co-host of the Food Network series ''The Kitchen'' and host of ''Sandwich King'' and ''$24 in 24''. Prior to this, he was the winner of the Food Network Star (season 7), seventh season of the ''Food Network ...
, the "Sandwich King", who is Italian-American, discussing the nature and role of the different Italian meats and other ingredients.


"Refresh"

In July 2021, Subway debuted its "Refresh" campaign featuring: Tom Brady,
Stephen Curry Wardell Stephen Curry II ( ; born March 14, 1988) is an American professional basketball player for the Golden State Warriors of the National Basketball Association (NBA). Widely regarded as one of the greatest basketball players of all time, ...
, Serena Williams, and Megan Rapinoe. Subway franchisees requested Rapinoe be pulled from the ads following the 2020 Olympics, claiming her testimonial caused sales to dip and harmed the stores' reputation.


Animal welfare

In December 2015, Subway released a commitment to move to a 100% cage-free egg supply chain in North America by 2025. In April 2017, Subway released a chicken welfare policy that states that by 2024 or sooner, 100% of its U.S. chicken products will be produced in alignment with Global Animal Partnership (GAP) standards for higher welfare breeds, enhanced living environments (including lighting, litter, and enrichment), increased activity levels and optimized stocking density, and improved slaughter methods. To ensure compliance, Subway's chicken suppliers will be third-party audited with updates communicated annually. The policy announcement followed a nationwide campaign led by high school animal activist Lia Hyman in coordination with the animal protection NGO The Humane League. On April 20, 2017, Hyman and a group of activists traveled to Subway's global headquarters in Connecticut to deliver more than 53,000 signatures from campaign supporters and held a demonstration outside the building after they were denied entry.


Controversies


Hepatitis A contamination

In September 1999, at least 32 customers in Seattle contracted hepatitis A after eating food contaminated with the virus at two Subway outlets. The virus, which is spread by eating or drinking food or water contaminated with infected feces, infects the liver causing nausea, vomiting, diarrhea, fatigue, and fever. Subsequent investigations found that staff failed to adhere to thorough hand washing and the use of plastic gloves during food preparation. A class-action lawsuit on behalf of 31 victims was resolved for $1.6 million. The most seriously affected victim—a 6-year-old boy—suffered acute liver failure and required a liver transplant. He was awarded $10 million in an out-of-court settlement in 2001. A previous outbreak of hepatitis A in 1996 had also involved a Subway outlet in Seattle, although no legal action had resulted. In April 2015, the
Arkansas Department of Health The Arkansas Department of Health (ADH or commonly Health Department within the state) is a department of the government of Arkansas under the Governor of Arkansas. It is responsible for protecting health and well-being for all Arkansans. ADH is a ...
issued a warning to the public that customers who had eaten at the Subway outlet in Morrilton, Arkansas, may have been exposed to infection after an employee tested positive for the virus.


Sandwich size

On February 2, 2007, KNXV-TV (with the help of the Arizona Department of Weights and Measures) reported that three of Subway's "Giant Sub" sandwiches, nominally each long, were actually , , and long. The maximum variance in length allowed in Arizona is 3% (, for a three-foot sub). The report also showed the boxes designed to store these sandwiches were in length; shorter than the maximum allowable variance. In response to the report, Subway said it was reevaluating its advertising, training, and packaging materials with regard to the specific or implied length of Giant Subs and was advising its franchisees to only discuss with customers the approximate number of expected servings and not a specific length of measurement. In January 2013, an Australian teen, Matt Corby, complained on Facebook that Subway's "footlong" sandwich was only long, rather than . Subway responded by saying, "With regards to the size of the bread and calling it a footlong, 'Subway Footlong' is a registered trademark as a descriptive name for the sub sold in Subway Restaurants and not intended to be a measurement of length."
Discovery Discovery may refer to: * Discovery (observation), observing or finding something unknown * Discovery (fiction), a character's learning something unknown * Discovery (law), a process in courts of law relating to evidence Discovery, The Discovery ...
during a subsequent class-action lawsuit revealed that most Subway sandwiches were the advertised length. A $530,000 settlement was thrown out of court in 2017 for being "utterly worthless" to consumers.


Franchise relations

In 1995, Subway Sandwich Shops, Fred DeLuca, Peter Buck, and Doctor's Associates Inc. were held liable for breach of contract. An Illinois jury awarded more than $10 million in damages to Nicholas and Victoria Jannotta after finding lease and contract violations. The plaintiffs claimed the defendants had misrepresented the asset value of Subway Sandwich Shops (a leasing company used by Doctor's Associates for franchising purposes) while negotiating a 1985 lease agreement. The U.S. House of Representatives' small business committee studied the franchise industry from 1992 to 1998. Dean Sagar noted, "Subway is the biggest problem in franchising and emerges as one of the key examples of every abuse you can think of." In 1989, the U.S. Small Business Administration refused small business loans to Subway franchise owners until Subway removed a contract clause which gave it the power to seize and purchase any franchise without cause. '' The Dallas Morning News'' reported Subway had seized American soldier Leon Batie Jr.'s Subway stores in 2006 while he was serving in Afghanistan. He had been deployed to support
Operation Enduring Freedom Operation Enduring Freedom (OEF) was the official name used synonymously by the U.S. government for both the War in Afghanistan (2001–2014) and the larger-scale Global War on Terrorism. On 7 October 2001, in response to the September 11 at ...
in March 2005, three years after buying his first restaurant. Batie alleged Subway had violated the U.S.
Servicemembers Civil Relief Act The Servicemembers Civil Relief Act (formerly called the Soldiers' and Sailors' Civil Relief Act) (codified a50 U.S.C. §§ 3901—4043 is a United States federal law that protects soldiers, sailors, airmen, marines, coast guardsmen, and commissione ...
. He filed a federal lawsuit against Subway, which was dismissed. He then filed suit in state court in Dallas County, Texas. Both parties settled on "mutually agreeable" and confidential terms in January 2010.


United Kingdom VAT treatment

In October 2010, Subway franchisees in the United Kingdom lost a high court appeal against paying standard
VAT A value-added tax (VAT), known in some countries as a goods and services tax (GST), is a type of tax that is assessed incrementally. It is levied on the price of a product or service at each stage of production, distribution, or sale to the en ...
on all toasted subs, as required by HM Revenue and Customs. Thus, in the United Kingdom, a toasted sub attracts VAT, whereas a cold sub, eaten off the premises, does not. Competitors such as Quiznos and McDonald's do not pay VAT on similar food. In March 2012,
Chancellor of the Exchequer The chancellor of the Exchequer, often abbreviated to chancellor, is a senior minister of the Crown within the Government of the United Kingdom, and head of His Majesty's Treasury. As one of the four Great Offices of State, the Chancellor is ...
, George Osborne announced plans to close the loophole that allows Subway competitors to offer hot food without paying VAT. This legislation was expected to come into force from October 2012 onward, but on May 28, 2012, the government withdrew plans to charge VAT on originally hot food being allowed to cool naturally. In June 2012, Subway launched the "Toast the Tax" campaign to put pressure on the government to drop VAT on toasted sandwiches, as it has done for hot savouries.


Footlong trademark disputes

On January 31, 2011, Subway lawyer Valerie Pochron wrote to
Casey's General Stores Casey's Retail Company (doing business as Casey's) is a chain of convenience stores in the Midwestern and Southern United States. The company is headquartered in Ankeny, Iowa, a suburb of Des Moines. As of April 30, 2019, Casey's had 2,146 stor ...
, a chain of Iowa-based convenience stores, demanding that the small chain cease using the term "footlong" in advertisements for its 12-inch sandwiches. Subway threatened to sue. Consequently, in February 2011, Casey's General Stores Inc. filed a petition in a U.S. District Court in
Des Moines Des Moines () is the capital and the most populous city in the U.S. state of Iowa. It is also the county seat of Polk County. A small part of the city extends into Warren County. It was incorporated on September 22, 1851, as Fort Des Moines, ...
, seeking a legal declaration that the word "footlong" does not violate Subway's rights. Casey's further sought a declaration that the word "footlong" is a generic description of a sandwich measuring one foot. Before serving its complaint on Subway, Casey's voluntarily dismissed its action, ending the litigation. Subway's trademark application for "footlong" has yet to be approved by the federal government. Subway has attempted to register it with the United States Patent and Trademark Office twice. It filed on November 8, 2007, and June 4, 2009. Both filings have been abandoned, on November 20, 2013, and August 21, 2014, respectively.
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(KFC, Pizza Hut, Taco Bell, and non-Canadian A&W locations), Long John Silver's, and other competitors opposed the applications.


Ingredients

Subway made alterations to its bread after food blogger, and activist Vani Hari gathered more than 50,000 signatures in a petition drive. Subway removed azodicarbonamide from its bread. Before Vani Hari's petition, Subway had used azodicarbonamide as a bread conditioner, to whiten the dough and allow sandwich bread to bake more quickly. , the ingredient was still used by other fast food restaurants. In August 2015, Vani Hari again petitioned Subway in conjunction with Natural Resources Defense Council,
Friends of the Earth Friends of the Earth International (FoEI) is an international network of environmental organizations in 73 countries. The organization was founded in 1969 in San Francisco by David Brower, Donald Aitken and Gary Soucie after Brower's split with ...
, the
Center for Food Safety The Center for Food Safety (CFS) is a 501c3, U.S. non-profit advocacy organization, based in Washington, D.C. It maintains an office in San Francisco, California. The executive director is Andrew Kimbrell, an attorney. Its stated mission is to ...
, U.S. Public Interest Research Group to commit to buying meat produced without the routine use of antibiotics and to provide a timeline for doing so. In October 2015, Subway announced it would transition to chicken raised without antibiotics in 2016 and turkey within the following 2–3 years, and would also transition beef and pork raised without antibiotics by 2025. In 2020, the
Supreme Court of Ireland , image = Coat of arms of Ireland.svg , imagesize = 120px , alt = , caption = Coat of Arms of Ireland , image2 = Four Courts, Dublin 2014-09-13.jpg , imagesize2 = , alt2 ...
ruled that Subway bread had too high a sugar content to be classed as bread for VAT reasons, with its recipe including sugar equal to 10% of the weight of the flour. In 2021, a lawsuit was filed against the company alleging that the ingredient Subway bills as " tuna" was a mixture of "various concoctions that do not constitute tuna, yet have been blended together by defendants to imitate the appearance of tuna". The company's senior director for global food safety and quality said in a statement that "Our restaurants receive pure tuna, mix it with mayonnaise and serve on a freshly made sandwich to our guests." The investigative TV show '' Inside Edition'' sent samples of Subway's tuna salad to Applied Food Technologies, a Florida company that carries out DNA testing of seafood. According to that company, "Yes, we confirmed that tuna was definitely in all three samples we received". Subway established a website, SubwayTunaFacts.com, to refute the claims that they did not use real tuna, which they have denied unambiguously.


Soy protein in chicken products

In an investigation by the Canadian Broadcasting Corporation (CBC)'s consumer affairs television series '' Marketplace'' aired in February 2017, chicken from five fast-food restaurants were lab-tested to determine constituents. While DNA testing found between 84.9% and 89.4% of the DNA from other restaurants' chicken products to be chicken DNA, with the remaining being unidentifiable plant DNA, on the two Subway chicken items tested, 53.6% and 42.8% of the DNA were found to be chicken, with the remainder being mostly soy. Although ingredients listings did show soy protein to be a constituent of both of the chicken products, Subway states that the proportion is less than or equal to 1% and that the finding of about 50% soy DNA is not representative of the actual amount of soy in the product. Subway has called CBC's report "absolutely false and misleading" and demanded that it be retracted. Meanwhile, however, Subway Canada stated that it was investigating with its supplier to ensure that the proportion of soy protein was as per expectations. According to Subway's website, U.S. stores' ingredients may differ from those in Canadian stores. Both countries include soy protein in chicken strips, but only the U.S. version states that it is present in quantities of 2% or less. The Canadian version includes soy as an ingredient in its chicken patty, but the United States version does not. In April 2017, Subway sued the CBC, as well as the reporter and two producers, for $210 million, alleging the CBC acted "recklessly and maliciously" and that "these false statements... were published and republished, maliciously and without just cause or excuse, to a global audience, which has resulted in pecuniary loss to the plaintiffs." The CBC stood by its reports, stating that the DNA tests were done by independent and credible experts. The CBC's Emma Bédard stated that Subway has not provided an alternative explanation for the DNA test results obtained by the CBC. In November 2019, Subway's lawsuit against the CBC was dismissed through anti- SLAPP legislation, as CBC's reporting was deemed to be a matter of public interest. In January 2021 the Ontario Court of Appeal overturned the decision dismissing the lawsuit. The Supreme Court of Canada denied leave for appeal, so the matter has been returned to the Superior Court of Justice for trial.


Underpaying workers

In 2019, the Fair Work Ombudsman found that 17 Australian-based Subway franchises had underpaid workers. The lengthy investigation by the Ombudsman specifically found that franchises failed to pay the employees minimum wages, casual loadings, holiday and overtime rates, and did not issue proper pay slips or keep proper employment records. The investigation resulted in over $81,000 being recovered in unpaid wages for over 160 employees. Subway responded by introducing a rolling audit of franchisee employment records and commented that franchise agreements could be terminated if franchisees failed to meet Australian workplace laws and Subway's internal standards of operation.


Calls for boycott over the Russian invasion of Ukraine

Following the
2022 Russian invasion of Ukraine On 24 February 2022, in a major escalation of the Russo-Ukrainian War, which began in 2014. The invasion has resulted in tens of thousands of deaths on both sides. It has caused Europe's largest refugee crisis since World War II. An ...
, Subway was criticized for not divesting or scaling back its operations in Russia, unlike most of its competitors. Latest reports indicate that Subway has closed its operations in all its outlets in Russia. However, Subway's Russian website is still online, unlike those of chains that closed in Russia which either have been taken offline or redirect to Russian versions of the chain (the Russian McDonald's website redirects to Vkusno i tochka's website).Vkusno i tochka
/ref>


See also

* List of restaurant chains * List of submarine sandwich restaurants


References


External links

* {{Authority control 1965 establishments in Connecticut Companies based in Fairfield County, Connecticut Companies based in New Haven County, Connecticut Economy of the Northeastern United States Fast-food chains of Australia Fast-food chains of Canada Fast-food chains of Singapore Fast-food chains of the United Kingdom Fast-food chains of the United States Fast-food franchises Milford, Connecticut Multinational food companies Privately held companies based in Connecticut Restaurant chains in Singapore Restaurant chains in the United States Restaurant franchises Restaurants established in 1965 Restaurants in Connecticut Submarine sandwich restaurants