

So that was a huge, huge part of their brand. It was one of the biggest advertising wins that any chain's had in recent decades. And that just made them so much money, and it really made people think about Subway as a really great health brand. Everyone remembers those ads, where it's him in those huge pants where he's showing how he lost all of this weight.

Kate Taylor: One of their biggest successes for sure was the Jared Fogle story. At a time when obesity was rising rapidly in America, Subway continued to market itself as a healthy alternative to fast food. Subway's success continued into the early 2000s. And in that same period of time, gross sales rose by about $2.1 billion. Between 19, store locations rose from 5,000 to 13,200. Compare that to opening a McDonald's, which costs up to $2.2 million.īecause Subways were easy to open, the number of stores skyrocketed. It costs between $116,000 and $263,000 to open a Subway franchise. Narrator: Not only were Subway franchises successful, they were, and still are, one of the cheapest chains to franchise. Follow the several-hundred-page operating manual, do the advertising, and customers will come in. They help with a grand opening, and you're open. You buy a franchise, you get trained, they help you secure a location. While each store looks and smells the same, they're all independently owned franchises. Narrator: That's Joel Libava, an expert in franchising. Joel Libava: In the late '70s, and in the '80s, and in the '90s, everyone knew about Subway. By 1981, there were 200 locations across the US, and soon after, Subway went international. Compared to other fast-food chains at the time, it felt healthy. Narrator: The brand redefined fast food with fresh ingredients that customers could see. In many ways, they really pioneered that and the ability to customize your sandwich. Len Van Popering: What was so compelling then and still is today about Subway is really an open-kitchen format. Three years later, cofounders Fred DeLuca and Peter Buck rebranded it to simply Subway.Īnnouncer: Subway's famous giant foot-long sandwiches are made right before your eyes, the way you want 'em. The chain began as Pete's Super Submarines in Bridgeport, Connecticut, in 1965.

Subway's closed thousands of stores in the last three years and saw a 25% fall in business from 2012 to 2017. And at first, that sounds like a sign of a thriving sub giant. Narrator: With more than 42,000 restaurants in over 100 countries, Subway has the most locations of any fast-food chain on the planet.
