top of page
  • snitzoid

OMG, Subway store owners are such losers!

You own a Subway store? Have you no shame? You don't even have the moxy to shine the shoes of a Chick-fil-A owner.

Sandwich specialist Subway is exploring a sale, eyeing a deal that the Wall Street Journal reports could value the chain north of $10bn.

The news comes at a time when Subway’s business is looking fresh, having reportedly posted record sales in 2021 and 2022, after roughly a decade of stagnation.

Subway started life in 1965 as Pete’s Super Submarines in Connecticut, co-founded by then 17-year-old Fred DeLuca and family friend Peter Buck, who loaned DeLuca $1,000 to start the business to try and pay college tuition. Running each store themselves, the pair successfully opened 16 shops in less than a decade, but things were taken to the next level when they began franchising in 1974.

Sub counts

Since then, Subway has managed the brand carefully, positioning the chain as a healthier alternative. That branding, combined with a lean franchise model, propelled Subway towards the top of the franchise food chain — meaning that any potential acquirer will get a company with more than 21,000 sites in America (per QSR), 30% more than second-place Starbucks.

Indeed, setting up a Subway franchise reportedly costs somewhere between $100k-250k, a fraction of what’s needed to set up a McDonald’s equivalent where costs can exceed $2 million.

However, although each store requires a lower upfront cost, they also sell less. A typical Subway pulls in a relatively-meager ~$440k of sales-per-store, the second-lowest in the QSR 50. Low costs also mean that Subway stores pop-up constantly, which means franchisees can find themselves “eating from opposite ends of the same sandwich”, hurting sales for both.

3 views0 comments

Recent Posts

See All

Oh boy, do I wish I was the Law School Dean at Columbia? Ok, I have no legal background...but qualifications never stopped me. Let's see how could I diplomatically handle this? "Dear students, you'r

Post: Blog2_Post
bottom of page