1. What’s next for Subway?
In a rare interview, the reclusive co-owner of the Subway sandwich brand revealed this week that he believes the franchisor’s quickest route back to robust financial health is diversifying into other restaurant businesses.
Peter Buck, the nuclear physicist who lent a teenaged Fred DeLuca $1,000 to launch Subway in exchange for 50% of the company, told The New York Post he believes Subway should buy or start a bunch of alternative chains to regain its footing.
But that’s not what DeLuca’s family would prefer to do. Fred’s widow, Elizabeth, holds the other 50% of Doctor's Associates, Subway’s parent, and his sister, Suzanne Greco, is now running the chain. Their focus has been on reviving Subway by updating its look, operations and menu, not shifting resources into other businesses. In short, they don’t agree with Buck.
Since the Howard Hughes of the restaurant business fronted DeLuca the money to start the chain, the pair have tinkered with a number of alternative franchise businesses. Before DeLuca died, Subway had also tried a more upscale riff, Subway Cafe. But all of those efforts appear to have been put on a back burner.