Chotu Sub
Subway IP LLC, doing business as Subway, is an international fast-food restaurant chain based in the United States that specializes in wraps and submarine sandwiches (subs). In 1965, it was established as Pete’s Super Submarines in Bridgeport, Connecticut, by Fred DeLuca and funded by Peter Buck. It changed its name multiple times before becoming Subway in 1972. In 1974, a franchise operation was launched with a second location in Wallingford, Connecticut.Chotu Sub
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“Eat Fresh” is a well-known Subway slogan that aims to convey that their toppings are, in fact, fresh. With more over 68,000 sites throughout more than 102 countries and territories as of September 2023, it was the fastest-growing franchise globally in 2015. The United States is home to more than half of its locations (21,796 or 61.1%). It is the world’s biggest restaurant operator and the biggest network of restaurants under a single name. Shelton, Connecticut is home to its global headquarters.Chotu Sub
History
Foundation and early years
Fred DeLuca started “Pete’s Drive-In: Super Submarines” at 3851 Main Street in Bridgeport, Connecticut, in 1965 with a $1,000 loan from his friend Peter Buck. The following year, they established Doctor’s Associates Inc. to manage the restaurants’ operations as the franchise grew. The name of the holding firm comes from Buck’s doctorate in physics and DeLuca’s objective of making enough money from the company to cover his medical school tuition. The sandwich shop changed its name to Subway in 1968. A restaurant in Wallingford, Connecticut, marked the start of a franchise operation in 1976.Chotu Sub
In 1978, the first Subway on the West Coast opened its doors in Fresno, California. In December 1984, the first Subway outside of North America opened its doors in Bahrain. In 1986, St. John’s saw the opening of Canada’s first Subway. In 1996, Brighton saw the opening of the first Subway in the United Kingdom.Chotu Sub
Cajun Joe’s, a Boston, Massachusetts-based company that served Cajun food and fried chicken, was purchased by Subway in 1989. By the end of the 1990s, the majority had been shut down due to the venture’s failure.Chotu Sub
Development since the 2000s
Subway started setting up shop in Walmart supercenters in 2004, and by 2007, they had more shops inside US Walmart stores than McDonald’s. Subway has maintained a constant ranking in the Entrepreneur Franchise 500 since 2007. It was named the “Fastest Growing Franchise” and the third-ranked “Top Global Franchises” in 2015. By the end of 2010, Subway had 33,749 locations, 1,012 more than McDonald’s, making it the biggest fast food business in the world.Chotu Sub
Suzanne Greco took over as president and CEO in January 2015. The company’s original CEO, her brother Fred DeLuca, passed away in September 2015 from leukemia after a two-year illness. For the first time, Subway had a net loss in locations in 2016, closing hundreds of its outlets across the United States. Nevertheless, with 26,744 outlets, it continued to be the most common restaurant chain in the United States, with McDonald’s coming in second.Chotu Sub
New company branding and remodeled restaurants called ‘Fresh Forward’ were revealed by Subway in July 2017. The business added new menu options, set up USB charging stations at tables, and put self-order kiosks.Chotu Sub
Over 800 Subway outlets were shut down in the United States in 2017. It declared in April 2018 that it would close roughly 500 more that year. This was due to a 25 percent decrease in foot traffic in Subway stores since 2012 and three years of declining revenues, according to Abha Bhattarai of The Washington Post. Franchisees also expressed dissatisfaction about the company’s extensive marketing campaigns, which further reduced profitability.[Reference required] To reinvent its image and increase sales, Subway spent $25 million in January 2018 on a rebranding campaign aimed at youthful people. John Chidsey became the first non-founding family member to serve as Subway’s CEO in 2019. Instead of constructing new restaurants, he concentrated on enhancing already-existing ones in the United States.Chotu Sub
The family declared in 2023 that they were selling the business to a private enterprise. For the sale, the business sought JP Morgan’s assistance. According to reports, the corporation was valued at approximately $10 billion. The business received offers from a number of possible purchasers. These included TDR Capital, TPG Inc., and the asset management branch of investment bank Goldman Sachs. Subway declared on August 24 that Roark Capital would pay $9.6 billion to acquire the business.[41] With its reported value, the deal would rank third in the history of restaurant acquisitions in the United States, behind the $11.4 billion purchase of Tim Hortons by Burger King in 2014 and the $11.3 billion purchase of Dunkin’ Brands by Inspire Brands in 2020.Chotu Sub
The Federal Trade Commission declared in November 2023 that it was examining the purchase because it would potentially give Roark a monopoly in the sandwich shop sector through the company’s current ownership of Jimmy John’s and McAllister’s Deli, Subway’s rivals. The FTC ruled that Roark did not have an unfair advantage, and on April 30, 2024, Roark formally bought Subway.Chotu Sub
Subway’s collaboration with The Coca-Cola Company, which was first inked in 2003, went into effect the following year in 2004, and the Coke switchover was finished by 2005, came to an end on March 19, 2024, when the restaurant chain signed a 10-year agreement with PepsiCo that would start on January 1, 2025. Chotu Sub Between 2015 and 2018, Subway’s overseas outlets had previously began serving Pepsi products. Prior to the Coca-Cola transition, Pepsi had an agreement with them when they were first established.Chotu Sub
Corporate affairs
Ownership
Roark Capital, a private equity firm, controlled Subway as of 2024. The original family had owned Subway for 60 years before that. John Chidsey became the first CEO outside the DeLuca family to join Subway in 2019.Chotu Sub
Structure
The Subway Group of Companies was set up as follows as of 2017:
- The restaurant system’s intellectual property is owned by Subway IP Inc.
- Franchising operations are controlled by Franchise World Headquarters, LLC. The point of sale software for Subway is owned and licensed by FWH Technologies, LLC.
- Among the franchisors are Subway International B.V., Subway Franchise Systems of Canada, Ltd., and Doctor’s Associates Inc. in the United States.
- Subway Franchisee Advertising Fund Trust, Ltd., Subway Franchisee Advertising Fund Trust, B.V., Subway Franchisee Canadian Advertising Trust, and others are examples of advertising affiliates.
- Subway franchisees and the Subcard loyalty program are managed by IPC Europe (Independent Purchasing Company Europe Limited) in European nations.
Headquarters
The global headquarters of Subway are located in Shelton, Connecticut. The business occupies 90,000 square feet (8,400 m2) of premises in the Enterprise Corporate Park. Three storeys make up this area. Operations at this facility started in 2023. According to the company, Shelton was chosen since it was close to both sites of interest and other locations in Connecticut.Chotu Sub
Previously, the headquarters occupied three land parcels in Milford, Connecticut. The old structures were demolished in 2024.
The company’s global activities are supported by five regional centers. The regional offices for European franchises are situated in Amsterdam, Netherlands; Brisbane, Australia, supports the Australian and New Zealand locations; Beirut, Lebanon, and Singapore support the Asian locations; and Miami, the United States, is home to the Latin American support center.Chotu Sub
Franchising
Compared to rivals, buying a Subway franchise has a far cheaper initial investment, starting at between $200,000 and $500,000. But when compared to rivals, Subway franchisees also give back some of the largest portions of their profits—roughly 12.5%.Chotu Sub
Locations
Around 37,000 Subway shops across more than 100 countries were independently owned and run by a network of franchisees as of February 2023. With almost 20,000 stores in the US, 2,881 in Canada, and 758 in Mexico as of 2019, Subway has the most locations in North America. As of 2018, this was nearly equal to the combined number of McDonald’s and Starbucks locations in the United States. As of 2019, Australia (1,215), Brazil (1,643), and the United Kingdom (2,195) have the most locations outside of North America.Chotu Sub
Products
Overview
The submarine sandwich (or “sub”) is the main item that Subway sells. Additionally, it offers paninis, salad, wraps, and baked goods (such as muffins, cookies, and doughnuts). In addition, Subway offers flatbread, English muffins, and breakfast sandwiches. In certain US markets, “personal pizzas” made their debut in 2006. Similar to the subs, these are prepared to order and heated for 85 seconds. Pizza and breakfast are only offered in a few places. Subway agreed to sell only Seattle’s Best Coffee coffee on their breakfast menu in the United States in November 2009.Chotu Sub
The B.M.T. (short for “Biggest, Meatiest, Tastiest”) sandwich, which is Subway’s best-selling sandwich, is made of ham, salami, and pepperoni. It was first used in connection with the “subway” term as a reference to Brooklyn-Manhattan Transit.Chotu Sub
Subway stated that paninis would be added to its menu in April 2017. The four varieties were Italian B.M.T. Melt, Triple Cheese, Chicken Cordon Bleu, and Chipotle Steak & Cheese. For a brief period, Subway introduced the Chipotle Cheesesteak sandwich in September 2018. Arkansas also started trying a crispy chicken sandwich on a regional scale. In collaboration with Cinnabon and Auntie Anne’s, Subway introduced Sidekicks, a new line of footlong baked snacks, in January 2024.Chotu Sub
SubDog
The SubDog, an American-style hotdog covered with tomato sauce, mozzarella cheese, and a limited-edition tangy mustard, was first introduced as an April Fool’s joke in 2022, but owing to overwhelming demand, Subway made the limited-edition SubDog a reality. Subway declared that the SubDog would make a brief comeback to Australia from September 2 to October 6, 2024.Chotu Sub
Regional variations
The most notable difference between nations’ Subway menus is how the meats provided connect to religious requirements.
In 2006, the Mandel Jewish Community Center of Cleveland, a suburb of Cleveland, Ohio, became the first kosher Subway shop in the United States. Jared Fogle, a former spokesperson for Subway, was present during the unveiling. According to a press release, “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.”Soon after, more locations opened, briefly elevating Subway to the status of one of the biggest kosher food chains in the US. At its height, there were twelve kosher Subway restaurants in the United States, including five in New York and one in Kansas City. There is only one kosher Subway left, in Miami, Florida, as of 2023. The parent location’s lack of promotional assistance, the higher expenses of kosher food and oversight, the inability to stay open on Saturdays, and the preference of non-kosher consumers for the original menu and prices were all cited by franchisees that failed.
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In 2001, Subway established its first location in India, in New Delhi. Subway locations in India do not serve beef products out of respect for Hinduism; nonetheless, the country’s high vegetarian population has led Subway to provide a far wider variety of vegetarian alternatives. There were 591 Subway locations in 68 Indian cities as of January 2017. Subway’s first all-vegetarian location opened on the Lovely Professional University (LPU) campus in Jalandhar, Punjab, on September 4, 2012. In Paldi, Ahmedabad, Subway opened its second all-vegetarian location on March 6, 2013, serving Jain cuisine as well.
Nutritional content
Some Subway stores in Texas started serving gluten-free bread and brownies in 2011. In 2011, it also reduced the amount of salt in their sandwiches by 15%. In keeping with government goals, Subway has pledged to further lower the salt level of its whole menu in the UK and Ireland, having already done so by 33%. The charity Heart Research UK has endorsed Subway’s line of “Low Fat” subs.
Marketing
McDonald’s is the largest fast food advertiser in the US, with Subway coming in second. In 2011, it invested US$516,000,000 in quantifiable advertising.
Using the phrase “Eat Fresh,” Subway advertised how its sandwiches were prepared using freshly baked bread and fresh ingredients in front of customers, according to their exact requirements, by staff members they referred to as “Subway Sandwich Artists.”
Citing an increase in counterfeit stamps brought on by internet auction sites and the expanding availability of high-quality printers, Subway discontinued its “Sub Club” stamp offer in 2005.
Peter Griffin, a cartoon character from FOX’s Family Guy, promoted Subway’s new Feast sandwich in November 2007 in US ads.
Since the first season of the US television sitcom Chuck, Subway has run a commercial placement campaign. Fans were urged to buy a footlong Subway sandwich on April 27, 2009, the day of the season finale, as part of a campaign to “save Chuck” after the show’s second season ratings declined. Subway’s marketing chief, Tony Pace, described it as the company’s best product placement “in several years.”
On November 3, 2015, Subway ran a promotion called “Buy One Sandwich, Give One Sandwich Free” in honor of National Sandwich Day.
Every day of the week, a different submarine sandwich is offered at a discounted price as part of the “Sub of the Day” promotion at the majority of Subway restaurants. Previously, they offered a speciality sub sandwich for the whole month at a discounted price as part of a monthly promotion.
