Subway (restaurant)

Subway is an American multinational fast food restaurant franchise that specializes in submarine sandwiches (subs), wraps, salads and drinks.

Subway was founded by 17-year-old Fred DeLuca and financed by Peter Buck in 1965 as Pete's Super Submarines in Bridgeport, Connecticut. 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, 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 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 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 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, 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 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, 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 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, salad, paninis, and baked goods (including cookies, doughnuts, and muffins).

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 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.

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

HOME


Content is Copyleft
Website design, code, and AI is Copyrighted (c) 2014-2017 by Stephen Payne


Consider donating to Wikimedia



As an Amazon Associate I earn from qualifying purchases