Subway could be the first giant for sale this 2023

The chain of fast food specializing in sandwiches Subway It is the largest in the field in the United States. She even surpassed another giant like McDonald’s in number of locations. However, in recent years its sales began to deflate after an aggressive expansion that lasted until the early 2000s. Now the family business is looking at a possible sale.

According to Reuters, based on information provided by a source, the company is exploring the possibility of selling its business. In total, it has more than 37,000 points in 100 countries. From its inception until now it has always been in the hands of the two founding families, the DeLucas and the Bucks. But something has changed in the last year because the two people who started the company are gone.

A millionaire figure at stake

The last report of Technomic on the fast food industry in the United States showed that the brand experienced a big drop in sales in recent years. From operating 12.3 billion dollars in 2013, it went on to register sales of 9.4 billion in 2021. Likewise, it registered falls in its number of branches for five consecutive years.

Despite these figures, The Wall Street Journal reported that the sale operation could value Subway at more than 10 billion dre dollars. The process, however, is at an early stage. At the moment, they would only be seeking to attract potential corporate buyers and private equity funds.

As a private company, we do not comment on the ownership structure and business plans,” a company spokesperson told Reuters via email.

The story behind Subway

The chain’s history began with a loan. Fred DeLuca, 17, wanted to study medicine and asked Dr. Peter Buck, a family friend of his, for help. He gave her $1,000, but on one condition: that she use it to start a business.

In turn, the doctor suggested the idea of ​​sandwiches, and in 1965 DeLuca opened Pete’s Super Submarines.

Peter Buck and Fred DeLuca, the co-founders of Subway. The first local did not survive. However, DeLuca continued with the idea and opened another restaurant with the same approach and in 1968 he renamed it Subway. This time the model did manage to take off, six years later it launched its first franchises and by 1982 it already had 300 operating branches.

Boom, bust and new plan

Subway grew up selling itself as a cheap franchise option and as a “healthy” alternative to other Subway brands. fast food. But from 2014 its great growth peaked.

Sales began to fall and for the first time the chain closed branches. To this was added the death of DeLuca in 2015 at the age of 67. Meanwhile, Buck died in November 2021.

In the past year, the company launched a plan to turn its finances around. It expanded the offer with other products, such as soups; it remodeled branches and renewed the menu to favor the speed of service. In addition, it made an agreement with a supermarket chain to bring its products to the gondolas. Today the firm is in the hands of Doctor’s Associate, which was divided equally between the heirs of both founding partners.