In this article, we will see when was Subway Founded and its history.
Introduction
Quick Service Restaurants (QSR) are the ones that provide food to their customer as fast as possible; in general, fast-food restaurants are termed QSR restaurants. McDonald’s, Pizza Hut, Dominos, Subway, and Burger King, are restaurants that are some of the top QSR restaurants which rule the fast-food market. Subway is one famous franchise that delivers sandwiches, salads, and beverages to its valuable customers. It has around 41,600 outlets all over the world across 110 countries.
A teen boy, Fred DeLuca, of age 17, started the small restaurant business in 1965 in Connecticut, U.S, to fund his tuitions fees for the college. He had a dream to become a Doctor and was studying in college. But sooner, he could not pay his tuition fees, so he went for help from his family friend Peter Buck, which changed everything for Fred. Peter Buck suggested the boy take the loan of $1000 and open a restaurant that provides submarine sandwiches to the customers and pays all the college fees from his profit.
The idea gave Fred a sense of freedom, and he accepted the idea. With Peter’s help, Fred opened their first restaurant and named it Pete’s Super Submarines, and they both failed to generate enough revenue. So they opened a second outlet, and that too went down the line. Fred looked into the matter and studied, and soon he found that their brand name Pete’s Submarines could not grasp their customers. Fred was also a psychology graduate, researched the business, and again opened the third outlet, this time rather than Pete’s Super Submarines. They branded it as Subway in 1968, and it was the Subway that made the idea profitable.
Principles of Fred and Peter
Fred knew very little about the fast-food business, but Peter had conviction on his idea. No failure stopped them, as it was not only about the product that they were supplying but also about their principles that they both maintained throughout the whole outlet and each country:
- They treated their customer with utmost priority and value and provided the best service that they could. It was about how much revenue a company generates and the quality of the product they provide to their customer, a reasonable price.
- The most crucial principle that maintained the restaurant to the top of the chain is, keeping the operating cost low and never leave a chance to stop improving.
Subway’s Journey Starts
Even though the founder of Subway, Fred DeLuca, never made Sub, he started a business that will be converted into an empire one day. Fred and Peter opened their first QSR restaurant in 1965; the idea was to provide farm-fresh food to the customers in no time. They set up in 1965, and on the very first day, made a significant sell-off of around 300 sandwiches at 49 and 69 cents. However, it was 1968 when they officially branded their restaurant Subway.
Franchising of the Subway
Fred, without wasting anything, devoted his time and money to growing the Subway restaurant. He saw the love and acceptance that people were giving to the restaurant. Though their business was growing at a good pace, they found it challenging to manage and maintain the same taste throughout whole outlets in the city. They decided to open around 30 outlets in Connecticut by the end of 1974, but years passed, and they lacked from their goal by about 15 to 16 outlets. Finally, in 1974, they both decided that the best way to overcome their problem and grow the subway chain was to franchise the restaurant. Their friend Brian Dixon, to whom they went taking their proposal, and the first franchise of Subways got inaugurated in walling ford, New Haven, making Brian the first franchise owner of the Subway’s journey. As the partners followed the franchise model, sooner only within one year, Fred and Peter could open 14 more restaurants in a single year. This boosted up the journey of the Subway and their Sandwiches.
The debut of New Items in Menu
The success of the Subway, in a minimal time, kept Fred and Peter motivated for the business. As, with times, things should keep on changing, and so do the menu of the Subway. In 1975, subway launched its one of the famous sandwich till now, called BMT Sandwich; in 1977, they introduced the Snak sub sandwich, and by the end of 1981, the Subway became the owner of 200 restaurants. However, Subway was not stopping and, with the efficient model by 1982, Subway opened 300 restaurants, which was the most significant milestone achieved by any QSR at that time.
What makes Subway Special?
Subway was growing continuously, and its revenues were improving at a good pace. The subway had to compete with McDonald’s as it was a more prominent and preferred brand than Subway. Therefore, they had to start something new, which their customer feels promising and attracted to their product. The central concept of Subway was the flexibility to make sandwiches as per your choice. The sauces, bread to be used, the vegetables, and the spices, customers can select from broad combinations. In 1983 Subway developed a concept to baking their bread, fresh bread directly from the oven to your table. Sooner, Subway again was able to build their customers. The overseas business started in 1984 in the Middle Eastern nation of Bahrain. Subways was a food chain inclined towards healthy food; keeping this in mind, in 1985, they opened their 500th restaurant and introduced wheat bread, which attracted diet-conscious people. Covering every part of the world, they reached Canada in 1986. The strategy worked so well for Fred and Peter that in 1987 they completed their 1000 restaurant. Year after year, the Subway grew so fast that it started to open 1000 restaurants worldwide; in 1990, a whopping 5000 outlets were established.
Out of the Box
Subways started to think out of the box to expand their business. In 1992, Subway made a move and participated in the school lunch program; students started enjoying the sandwiches in their lunch too. In 1995, they also started to sponsor motorsports, and then the popularity of the restaurant reached many other countries. Moreover, they began to take the non-conventional spots to open their restaurant. They began to open their small stores at bus stops, fuel stations, and rest areas too. And then the year 2001, when Subway stepped into one of the most opportunistic markets of the world, the Indian Market, from the city of Delhi, followed by Chennai, Bangalore, and Hyderabad. Subway even introduced its outlets to Zoos and airports, and nothing was stopping them from growing the empire of Subway. India, too, was not behind in the expansion of the subways. Soon in the year 2007, India had 100 restaurants and flavors according to Indian tastes, also started hitting the Indian Subway franchise.
Subways and It’s Wonders
With more than 41,000 restaurants worldwide, Subway has already surpassed the great fast-food giant McDonald’s based on the number of outlets. According to a business insider report, Subway makes around 7.6 million sandwiches every day, with 5300 sandwiches in a single minute. The flexibility that the customers have to make the sandwich as they like, the possibility lies somewhere around 38 million combinations of sauces, veggies, and buns. Moreover, the amount of lettuce used in all the outlets combined goes to 16 acres in a single day. The partners of Subway were so innovative that the BMT sandwich that they introduced in 1977 was actually named as Brooklyn-Manhattan Transit system after actual Subway, but then later renamed as Biggest-Meatier-Tastiest. Subway also made its debut in the fashion industry in 2014. It launched a project named “Project Subway,” In 2014, under the same project, designers made clothes inspired by the vegetables found in Subway’s restaurant. The wonder that everyone is shocked about is how every Subway smells the same; although years passed, the mystery remains intact. The fitness and wellness industry has been growing so much over the years; people started counting their calories now and then, for this subway has reduced sugar content in their bread. Most important, on November 3rd, National Sandwich Day is celebrated, and on occasion, every customer is given a free sandwich. The wonders go on and on, but Subway never fails to surprise its customers.
Conclusion
Subway has an exciting history; from where it started? How did it start? And even who it started? After so many rivals, the subway never felt demotivated and kept on growing steadily. A long journey from where it started in 1965 to 2021, Subway has maintained its principle on which the restaurant started and continued to grow in the direction of the same vision. The Subway became the place to stop for a nutritious and healthy meal.
Frequently Asked Questions
- When was Subway founded?
Subway was founded in 1965 by two partners Fred DeLuca and Peter Buck.
- Where is the Subway’s headquarters?
Subway’s headquarters is in Milford, Connecticut, U.S
- How many restaurants of Subway are there worldwide?
Subway has around 41,600 restaurants across the world.
