After Peter Buck, the co-founder of the largest sandwich chain in the world, died at the age of 90, Subway is now looking into the prospect of selling the family business. There are tens of thousands of locations for the fast food chain globally, but it faces intense competition from places like McDonald’s. According to the Wall Street Journal, the media outlet that broke the news first, the business is reportedly valued at over $10 billion (£8.2 billion).
The company is finding it difficult to survive as a result of the rising costs. Investment banking behemoth JP Morgan is advising Subway on a possible lead for selling its company. Subway did not provide any additional information regarding the conceivable selling, stating that no updates would be given until the procedure was finished. The business reported record sales for the second year in a row and said same-store sales increased 9.2% in 2018 compared to 2021.
For the first time in more than 14 years, McDonald’s, a competitor of Subway’s, increased the price of its hamburger in the UK in July.
The first Subway restaurant opened its doors in 1965 in Bridgeport, Connecticut as Pete’s Super Submarines, founded by Fred DeLuca, then 17 years old, and Peter Buck, a family acquaintance. Before adopting the name “Subway” in 1972, it experienced a number of renaming attempts.
After establishing 16 sandwich shops in their home state in less than two years, they began franchising the company. Currently, it runs about 37,000 shops across more than 100 countries. Subway locations are owned and operated by franchisees, who number in the thousands of small business proprietors and entrepreneurs. Recently, businesses around the globe have noticed higher costs for everything from food to fuel.
