Sandwich chain Subway to sell its family business after 60 years

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Over a year after, the world’s biggest sandwich chain co-founder, Peter Buck passed away at the age of 90, Subway is now exploring the possibility of selling its family business. The fast-food chain which has tens of thousands of outlets worldwide is staring at fierce competition from outlets like McDonald’s. The valuation of the company is believed to be set for over $10bn (£8.2bn), as per Wall Street Journal, the media portal that first broke the news. 

The soaring costs are also posing a challenge for the business to sustain. To help Subway on the potential lead for selling its business, Investment banking giant JP Morgan is advising the business. However, no further information related to the potential sale was made by Subway, which said that no updates to be provided until the process is complete. The company announced its second year in a row of record sales and said same-store sales rose 9.2% last year, in comparison to 2021.

McDonald’s which is giving close competition to Subway spruced up the price of its cheeseburger in the UK in July for the first time in over 14 years.

Subway was first established in Bridgeport, Connecticut in 1965 as Pete’s Super Submarines by 17-year-old Fred DeLuca and a family friend named Peter Buck. It underwent a number of renaming attempts before being given the Subway name in 1972.

They started franchising the business after opening 16 sandwich shops in their native state in less than two years. It currently operates approximately 37,000 stores in more than 100 nations. Franchisees, which number in the thousands of small company owners and entrepreneurs, own and run Subway locations. Companies all throughout the world have seen higher expenses recently for everything from food to fuel.

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