Key Stats
Founded: August 28, 1965
Headquarters: Shelton, Connecticut (international); Miami, Florida (brand operations)
Founders: Fred DeLuca and Peter Buck
CEO: Carrie Walsh (interim, 2025–present)
Owner: Roark Capital (since April 2024)
Locations: ~37,000 worldwide (including ~19,500 in the U.S.)
Systemwide Sales: ~$16 billion (2024)
Acquisition Value: $9.6 billion (2024)
Subway is an American multinational fast-food restaurant franchise that specializes in submarine sandwiches (subs), wraps, and salads. With approximately 37,000 restaurants across more than 100 countries, Subway is the world’s largest single-brand restaurant chain and one of the largest restaurant operators globally, trailing only McDonald’s and Starbucks by total locations. All Subway restaurants are franchisee-owned, operated by a network of more than 20,000 entrepreneurs and small business owners.
The company traces its origins to August 28, 1965, when 17-year-old Fred DeLuca borrowed $1,000 from family friend Peter Buck, a nuclear physicist, to open a submarine sandwich shop in Bridgeport, Connecticut. Originally named “Pete’s Super Submarines,” the shop was intended to help DeLuca pay his college tuition. On the first day, they sold 312 sandwiches at prices between 49 and 69 cents. DeLuca quickly learned that his first location was poorly chosen—what he later called a “crummy location”—and early sales didn’t match that opening-day performance.
By 1968, the name was changed to Subway, and by 1974, DeLuca and Buck had built 16 restaurants throughout Connecticut. Facing a goal of 32 stores in 10 years, the partners turned to franchising—a decision that would transform their regional sandwich shop into a global franchise empire. The first Subway outside North America opened in Bahrain in 1984, and by 2010, Subway had surpassed McDonald’s to become the largest fast-food chain worldwide by number of locations. Although that lead has since narrowed and U.S. locations have declined from a peak of over 27,000 (2015) to about 19,500 (2024), Subway remains one of the largest and most recognized restaurant brands in the world. In April 2024, private equity firm Roark Capital acquired Subway for approximately $9.6 billion, ending nearly six decades of family ownership.
Subway History
1965–1968
Pete’s Super Submarines
Fred DeLuca, a 17-year-old Bridgeport, Connecticut, high school graduate, borrows $1,000 from family friend Peter Buck to open a submarine sandwich shop. Buck, a nuclear physicist at United Nuclear Corporation, had met the DeLuca family when Fred was about 10 years old, and the families had stayed in touch. At a backyard barbecue in summer 1965, DeLuca asks Buck for advice on how to pay for college tuition; Buck suggests opening a sub shop and writes him a check. Two weeks later, on August 28, 1965, Pete’s Super Submarines opens at 3851 Main Street in Bridgeport. Fred’s mother Carmela helps buy bread, meat, vegetables, and cheese; Buck donates his kitchen table. They sell 312 sandwiches on opening day, but the poor location limits growth. A second store opens in Fairfield in 1966 “to give the illusion of success.” In 1966, DeLuca and Buck formalize their partnership as Doctor’s Associates Inc.—the name references Buck’s Ph.D. and DeLuca’s hope to eventually become a doctor. In 1968, the restaurants are renamed Subway.
1974–1984
Franchising Begins
By 1974, DeLuca and Buck operate 16 Subway restaurants throughout Connecticut but are behind their goal of 32 stores in 10 years. They decide to franchise, with the first franchised location opening in Wallingford, Connecticut. A friend of DeLuca’s becomes the first franchisee. Fred’s mother Carmela and sister Suzanne join the company; wife Elisabeth becomes a company officer. Corporate headquarters are established in Milford, Connecticut (a Bridgeport suburb). In 1978, the first West Coast Subway opens in Fresno, California. The 200th restaurant opens in Renton, Washington (1981). In December 1984, the brand’s first international location opens in Bahrain—Subway’s entry into the Middle East.
1985–1996
Global Expansion
Subway expands rapidly across North America and beyond. Restaurants open in Puerto Rico (1985), Canada (St. John’s, Newfoundland, 1986), Hawaii and The Bahamas (1987), Texas and Mexico (1990). In 1993, Subway pioneers “non-traditional” locations—gas stations, convenience stores, truck stops, and rest areas—a strategy that would account for approximately 25% of its global footprint. International expansion accelerates in 1995–1996, with restaurants opening across Asia, Europe, Africa, and Latin America. The first UK location opens in Brighton (1996). Subway.com launches (1996). The company introduces its freshly baked bread at U.S. locations during this period, becoming a signature feature.
2000–2010
Becoming the World’s Largest
Subway continues aggressive growth, opening stores inside Walmart Supercenters (2004) and surpassing McDonald’s for most locations inside U.S. Walmart stores (2007). In 2002, Subway becomes the largest fast-food chain in the United States by number of outlets. The brand consistently ranks in Entrepreneur magazine’s Franchise 500 list throughout this period. At the end of 2010, Subway surpasses McDonald’s to become the largest fast-food chain in the world, with 33,749 restaurants—1,012 more than McDonald’s globally. The company’s low initial investment requirements and simple operating model attract franchisees worldwide.
2015–2017
Peak & Decline Begins
Subway reaches its peak of nearly 45,000 locations worldwide and over 27,000 in the United States. On September 14, 2015, co-founder and president Fred DeLuca dies at age 67 from leukemia—just weeks after the brand’s 50th anniversary. His sister Suzanne Greco becomes president and CEO. The same month, Subway breaks the Guinness World Record for most people making sandwiches simultaneously (1,481 people). However, 2016 marks a turning point: for the first time, Subway closes more U.S. restaurants than it opens. Franchisee challenges, competition from rivals like Jersey Mike’s and Firehouse Subs, and perception issues begin to affect the brand. In July 2017, Subway unveils “Fresh Forward,” a redesigned store format with new branding, self-order kiosks, USB charging ports, and updated menu items.
2018–2021
Transformation & Digital Era
Subway launches third-party delivery partnerships with DoorDash, Grubhub, Postmates, and Uber Eats (2018), with 9,000 restaurants enrolling at launch. John Chidsey joins as CEO in 2019—the first chief executive from outside the DeLuca family. The company launches curbside pickup (2020) and direct delivery through Subway.com and the Subway app (2022). On November 18, 2021, co-founder and original investor Peter Buck dies at age 90. He bequeaths his 50% stake in Subway to the Peter & Carmen Lucia Buck Foundation—a gift estimated at approximately $5 billion based on the company’s potential sale value. U.S. location count continues to decline, with over 1,000 net closures in 2018, 2020, and 2021.
2021–2023
Menu Refresh & Brand Revival
Subway launches “Eat Fresh Refresh” (2021)—a comprehensive overhaul covering menu updates, digital experience improvements, and guest experience enhancements. The brand introduces revamped bread recipes, premium options like Artisan Italian, upgraded deli meats (Black Forest ham), and new sandwiches (Cali Fresh Sub with smashed avocado). New celebrity pitchmen include Tom Brady, Serena Williams, Charles Barkley, Steph Curry, and Megan Rapinoe. By 2023, North American same-store sales are up for 12 consecutive quarters. International expansion resumes, with master franchise agreements bringing commitments for 10,000+ new restaurant openings globally. Subway establishes the Subway Cares Foundation (2022), a nonprofit supporting hunger relief and scholarships.
2023–2025
Sale to Roark Capital
In February 2023, Subway announces it is seeking a buyer at a reported asking price of $10 billion. After a competitive bidding process involving Bain Capital, TPG, TDR Capital, and others, private equity firm Roark Capital emerges as the winner in August 2023. The Federal Trade Commission reviews the deal due to concerns about Roark’s ownership of competitors Jimmy John’s and McAlister’s Deli through subsidiary holding companies. On April 30, 2024, the acquisition closes at approximately $9.6 billion—ending nearly 60 years of family ownership. The deal is one of the largest restaurant acquisitions in history. CEO John Chidsey retires at year-end 2024; Carrie Walsh (president of EMEA) becomes interim CEO. Despite continued U.S. closures (631 net loss in 2024, bringing U.S. total below 20,000 for the first time in 20 years), the brand achieves positive global net restaurant growth for the second consecutive year, with over 1,000 new international openings. Subway signs a 10-year deal with PepsiCo, ending its partnership with Coca-Cola that began in 2003–2005.
Founders
Fred DeLuca (1947–2015)
Frederick Adrian DeLuca was born on October 3, 1947, in Brooklyn, New York, to Italian American parents Carmela and Salvatore DeLuca. At age 10, the family moved to Amsterdam, New York, where Fred befriended a neighbor named Peter Buck. The DeLucas later relocated to Bridgeport, Connecticut, where Fred graduated from Central High School in 1965.
Working for minimum wage ($1.65/hour) at a local hardware store, DeLuca knew he couldn’t afford the University of Bridgeport’s tuition. At a summer barbecue at the Buck home, Fred noticed the large white house, wide lawn, and two-car garage—stark contrast to his family’s small apartment. He asked Buck for advice on paying for college. Buck’s unexpected suggestion: open a submarine sandwich shop. Two weeks later, with Buck’s $1,000 loan, Pete’s Super Submarines opened.
DeLuca ran Subway as a hands-on family business for five decades. His mother Carmela ran the first shop; his sister Suzanne oversaw research and operations; his wife Elisabeth (his college sweetheart) became a company officer. DeLuca personally signed company checks, made corporate decisions, and traveled extensively to franchises. He graduated from the University of Bridgeport with a psychology degree (paid for by sandwich profits). He established Subway’s open-kitchen concept after a hitchhiker admitted to stealing soft drinks when sandwich makers’ backs were turned. DeLuca also pioneered one of the first development agent programs in franchising. In 2002, he received an honorary Doctor of Humane Letters from the University of Bridgeport.
DeLuca was diagnosed with leukemia in July 2013. He died on September 14, 2015, at age 67, just weeks after Subway’s 50th anniversary. Forbes estimated his net worth at $3.5 billion. The Frederick A. DeLuca Foundation, established in 1997, continues supporting education and health programs.
Peter Buck (1930–2021)
Peter Buck was born on December 19, 1930, in South Portland, Maine, to Ervin and Lillian “Molly” Buck, who owned a farm. He grew up working on the family farm with his younger brother David. Buck graduated from South Portland High School (1948) and Bowdoin College in Brunswick, Maine (1952), then earned master’s and doctoral degrees in physics from Columbia University.
In 1957, Buck joined General Electric at the Knolls Atomic Power Laboratory in Schenectady, New York, performing tests and calculations on nuclear power plants for U.S. Navy submarines and surface ships. He later worked at United Nuclear Corporation in White Plains, New York (1965), calculating power distribution and refueling requirements for nuclear plants. His friendship with the DeLuca family began when both families lived in the Schenectady area; they remained close when the DeLucas moved to Bridgeport, Connecticut.
Buck’s $1,000 investment and his suggestion to open a submarine sandwich shop launched what would become one of the world’s largest restaurant chains. He and DeLuca set a goal of opening 32 shops in 10 years. A few days after writing the check, Buck drove DeLuca to Portland, Maine, to taste an Italian sandwich from Amato’s—giving Fred a model for what he thought would sell. Though Buck never took an office at Subway headquarters, he and DeLuca met weekly at the DeLuca family apartment to discuss business over Carmela’s spaghetti and meatballs.
Subway’s success made Buck wealthy—Forbes estimated his worth at $1.6–1.7 billion. He became a major philanthropist and one of America’s largest landowners, with over 1.3 million acres of timberland held through the Tall Timbers Trust. He donated to the Smithsonian Institution (including the 23.10-carat Carmen Lúcia Ruby), the Internet Archive, and numerous other causes. Buck died on November 18, 2021, at age 90 in Danbury, Connecticut. He bequeathed his 50% stake in Subway—estimated at $5 billion—to the Peter & Carmen Lucia Buck Foundation, one of the largest single charitable contributions in a single year.
Major Milestones
- 1965 – Pete’s Super Submarines opens in Bridgeport, Connecticut (August 28); 312 sandwiches sold on opening day
- 1966 – Doctor’s Associates Inc. partnership formalized
- 1968 – Name changed to Subway
- 1974 – First franchised Subway opens in Wallingford, Connecticut
- 1977 – “Snak” 6-inch sub introduced (later renamed six-inch sub)
- 1984 – First international location opens in Bahrain
- 1993 – Non-traditional locations (gas stations, convenience stores, truck stops) begin
- 1996 – First UK location (Brighton); Subway.com launches
- 2002 – Becomes largest fast-food chain in the U.S. by outlets
- 2010 – Surpasses McDonald’s as world’s largest fast-food chain (33,749 locations)
- 2015 – Peak of ~45,000 locations worldwide; Fred DeLuca dies (September 14)
- 2017 – Fresh Forward store redesign launched
- 2019 – John Chidsey becomes first non-family CEO
- 2021 – Peter Buck dies (November 18); Eat Fresh Refresh menu overhaul launches
- 2024 – Roark Capital acquires Subway for $9.6 billion (April 30)
Subway U.S. Locations
Subway reached its U.S. peak of approximately 27,000 locations in 2015, the year co-founder Fred DeLuca died. Since 2016, the brand has experienced continuous net closures in the United States, though it remains the largest restaurant chain by domestic footprint. The company has focused on international expansion—with over 10,000 new restaurant commitments through master franchise agreements—while pursuing “smart growth” in the U.S. market.
Note: U.S. locations declined from ~27,000 (2015) to ~19,500 (2024)—a net loss of approximately 7,600 stores. Globally, Subway maintains ~37,000 locations across 100+ countries.
Subway Competitors
Subway competes primarily with other quick-service sandwich chains, though it also faces competition from broader fast-food and fast-casual categories. While Subway remains the largest sandwich chain by locations and systemwide sales, competitors like Jersey Mike’s have gained market share with higher per-unit sales and premium positioning.
| Company | Headquarters | Specialty |
|---|---|---|
| Jersey Mike’s Subs | Manasquan, NJ | Fresh-sliced subs, authentic sub shop experience |
| Jimmy John’s | Champaign, IL | Fast delivery, French bread subs |
| Firehouse Subs | Jacksonville, FL | Hot specialty subs, steamed meats |
| Potbelly Sandwich Shop | Chicago, IL | Toasted sandwiches, neighborhood shop feel |
| Panera Bread | St. Louis, MO | Bakery-café, sandwiches, soups, salads |
| Arby’s | Atlanta, GA | Roast beef, curly fries, “We Have the Meats” |
| McAlister’s Deli | Atlanta, GA | Sandwiches, soups, spuds, sweet tea |
| Quiznos | Denver, CO | Toasted subs (reduced from peak) |
| Blimpie | Atlanta, GA | Cold cut subs, founded 1964 |
| McDonald’s | Chicago, IL | Burgers, fries (broader QSR competition) |
FAQs
Who founded Subway?
Subway was co-founded by Fred DeLuca and Peter Buck in 1965. DeLuca, a 17-year-old seeking money for college, received a $1,000 loan and business advice from Buck, a nuclear physicist and family friend. They opened their first shop, “Pete’s Super Submarines,” in Bridgeport, Connecticut, on August 28, 1965. Buck provided the capital and original idea; DeLuca ran day-to-day operations for 50 years until his death in 2015. Buck died in 2021, leaving his 50% stake to charity.
Why is it called Subway?
The name evolved from the original “Pete’s Super Submarines” (named after Peter Buck). In 1968, the restaurants were renamed “Subway” as a shortened version of “submarine sandwich.” The holding company, Doctor’s Associates Inc. (formed in 1966), derives its name from Peter Buck’s Ph.D. in physics and Fred DeLuca’s original aspiration to become a doctor—the sandwich business was intended to pay his medical school tuition.
Who owns Subway now?
Subway is owned by Roark Capital, an Atlanta-based private equity firm that acquired the company for approximately $9.6 billion in April 2024. Prior to the sale, Subway had been privately held by the founding families for nearly 60 years. Co-founder Peter Buck bequeathed his 50% stake to the Peter & Carmen Lucia Buck Foundation before the sale. Roark also owns (through various holding companies) Jimmy John’s, Arby’s, Buffalo Wild Wings, Dunkin’, Baskin-Robbins, Sonic, Firehouse Subs, and other restaurant brands.
How many Subway locations are there?
As of early 2025, Subway operates approximately 37,000 restaurants in more than 100 countries and territories. About 19,500 of those locations are in the United States—down from a peak of over 27,000 in 2015. Despite U.S. declines, Subway remains the largest single-brand restaurant chain in the world, trailing only McDonald’s (~40,000) and Starbucks (~38,000) in total global locations. The brand has over 10,000 new restaurant commitments through master franchise agreements for international expansion.
What happened to Subway’s founders?
Fred DeLuca was diagnosed with leukemia in July 2013 and died on September 14, 2015, at age 67—just weeks after Subway’s 50th anniversary. His sister Suzanne Greco succeeded him as president and CEO. Peter Buck, who remained active in philanthropy, died on November 18, 2021, at age 90 in Danbury, Connecticut. Both founders became billionaires through Subway; Forbes estimated DeLuca’s net worth at $3.5 billion (2015) and Buck’s at $1.7 billion (2021). Buck’s 50% stake in Subway—estimated at $5 billion based on the sale value—was bequeathed to his charitable foundation, making it one of the largest single charitable gifts in history.
