Who Owns Subway?

Subway was founded on August 28, 1965, in Bridgeport, Connecticut, by 17-year-old Fred DeLuca and family friend Peter Buck, who provided a $1,000 loan to help DeLuca pay for college. The original concept was a simple submarine sandwich shop, which DeLuca hoped to franchise rapidly to generate income.

The first store operated under the name "Pete's Super Submarines" before being renamed Subway. The franchise model was adopted from the early years, with DeLuca and Buck targeting rapid location growth as the primary metric of success. By 1974, there were 16 locations. By 1978, the chain had opened its 100th restaurant.

Subway's growth through the 1980s and 1990s was driven by its franchise model, which required significantly lower initial investment than competitors like McDonald's or Burger King. The relatively low cost of entry attracted franchisees globally, enabling Subway to surpass McDonald's in total location count by 2010, reaching approximately 34,000 locations.

The chain's "Eat Fresh" positioning, emphasizing customized sandwiches made to order with fresh vegetables, differentiated Subway from burger-centric fast food competitors. Jared Fogle, a customer who claimed to have lost 245 pounds eating Subway sandwiches, became the brand's spokesperson from 2000 to 2015 before Subway terminated the relationship following Fogle's arrest and conviction on federal charges.

Subway experienced location count declines from a peak of approximately 44,000 locations around 2015, as the fast casual segment grew and Subway's store economics deteriorated for franchisees. The chain undertook a significant menu and store renovation program beginning around 2021, including the "Subway Series" menu that moved away from fully custom ordering toward named signature sandwiches.