Fred DeLuca,John P.Hayes

Start Small Finish Big

Fred DeLuca on Wikipedia — To start his first sandwich shop in 1965 when he was seventeen years old, DeLuca borrowed $1,000 from friend Peter Buck, after Buck suggested the idea to help Fred make money for college to study medicine. Deluca's plan was to begin a “fast-food venture that provided a healthier, less fattening bill of fare". On the radio advertisement they had promoted the name as “Pete's Submarines”, which sounded like Pizza Marine, so they changed the name to “Pete's Subway”. Eventually in 1968, it was shortened to “Subway” as it is known today.

The first shop opened on August 28, 1965 at a mediocre location in the city of Bridgeport, Connecticut. The first year of business was a learning experience and a challenge. A year later they opened their second location, having realized that visibility and marketing were key factors to success. DeLuca believed that the biggest mistake he made was where he set up his very first shop as it was a “crummy location.”[9] The third outlet was in a highly visible location and that location is still there today.[10]

In 1978, Subway’s 100th store opened, and reached the 1,000 store mark in 1987. Explosive growth continued with Subway opening over 1,100 units in 1993 alone. By comparison, McDonald's opened just under 800 that same year,

As of March 2012, the company counts over 36,400 franchised locations in 99 countries[11] and produces US $9.05 billion sales every year. Today, Subway is one of the most popular chain restaurants.

DeLuca and Peter Buck also partnered to create Franchise Brands in an effort to assist other entrepreneurs in replicating their success in the franchise industry.
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2012

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