Subway

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Exterior view of Subway restaurant in Bangkok, Thailand.

© Settawat Udom/Dreamstime.com

Subway is a restaurant chain specializing in made-to-order “submarine” sandwiches—split Italian rolls filled with your choice of sliced meats, cheeses, vegetables, and condiments. The sandwich maker is based in Milford, Connecticut, and serves more than 37,000 franchise locations in nearly 100 countries. It was acquired in 2024 by private equity firm Roark Capital in a $9.55 billion deal.

Subway began in August 1965 as a partnership between Fred DeLuca, a 17-year-old who needed money for college, and Peter Buck, a family friend with a PhD in physics. Buck loaned DeLuca $1,000 to open “Pete’s Super Submarines,” a takeout restaurant in Bridgeport, Connecticut.

Pete’s Super Submarines soon expanded to a second location in 1966, and in 1968 the restaurant name was changed to Subway. The sandwich chain continued growing to include 16 owned-and-operated outlets. Other growth milestones were to come:

The history of Subway would not be complete without mentioning Jared Fogle. Subsisting on a diet of only Subway sandwiches while a student at Indiana University, Jared claimed that Subway helped him to lose 245 pounds in less than a year. Jared became a national spokesperson for Subway in 2000—and “Jared from Subway” was the prominent face of the company for the next 15 years.

Fogle quickly turned from an asset to a liability for Subway when it was revealed that he had been the subject of an FBI investigation since 2007. In 2015, Fogle pleaded guilty to charges of sexual abuse and possession of child pornography, and was sentenced to 15 years in federal prison.

By the early 2020s, there were more than 40,000 Subway restaurants worldwide. By then, all stores were owned by franchisees. DeLuca died in September 2015, after which day-to-day control of the company passed to his sister, Suzanne Greco.

Despite its continued growth, Subway remained privately held until 2024. The founding family in 2023 signed a definitive agreement to sell Subway to the private equity firm Roark Capital, which specializes in franchise-based consumer and business service companies.

The deal faced scrutiny from the Federal Trade Commission (FTC) on concerns of diminished competition—Roark Capital also owns Subway rivals Jimmy John’s and McAlister’s Deli—but in April 2024, the acquisition was completed at a sale price of $9.55 billion.

Subway did not invent the sub sandwich (also called a hoagie, a hero sandwich, a poor boy or po’boy, an Italian sandwich, or a grinder), but did much to introduce it to a global audience. Although the company has rid itself of the “Jared legacy,” the idea of Subway as a healthy alternative to other fast food establishments lives on in its slogan, “eat fresh.”

Unlike much of the fast food sold by restaurant chains, Subway products are typically not fried and are liberally garnished with fresh vegetables. Subway therefore is able to brand itself as a purveyor of healthier fast food.

Back in 2002, Subway became the largest fast-food chain in the United States as measured by number of outlets. At its height, it served more than 40,000 franchises, but as of 2024, its franchise count had fallen to 37,000, making it second to McDonald’s, which boasts over 40,000 locations globally.