Subway sale could be the first big corporate news of 2023

Subway is one of the world’s largest quick service restaurant chain. With more than 37 thousand points of sale in more than 100 countries, Subway has practically not stopped growing in its more than four decades of life.

Subway’s success can be attributed to its aggressive marketing strategy which includes radio and television commercials, print advertising, sponsorship of sporting events and a Strong presence on social media.

In addition to traditional marketing efforts, in recent years, Subway has sought to differentiate itself from its competitors by offering healthier options than other chains.

Their menu includes salads, wraps, soups, and breakfast items, which are popular choices with customers.

In recent years, Subway has continued to expand its reach, opening new locations in markets like India, Mexico, and China. It also began offering delivery services, allowing customers to order food online or through Subway’s native app.

The data from Statesman They say that of the total number of restaurants, Subway had more than 25,000 in North America in 2021, including approximately 21 thousand in the United States, 2,900 in Canada and more than 750 in Mexico.

The European country with the largest number of Subway restaurants (until 2021) was the United Kingdom, with 2,200 establishments. Germany was second (650) and France third (388).

A 2022 survey of the most popular food brands in the UK revealed that more than half of the British public had a positive opinion of the brand.

Subway restaurant sales in the United States from 2015 to 2021 (in billions of dollars). Statista.

Subway explores a sale

But things haven’t been going so well for Subway in recent years. The increasingly important competition and the problems derived from the pandemic changed the scenario.

According to him Wall Street JournalSubway has hired specialized advisors to explore a sale of the closely held company.

The process, which is in the early stages, is expected to attract potential corporate buyers and private equity firms.

There is talk of an assessment of more than 10 billion dollars.

Subway, based in Milford, Connecticut, in the United States alone generated $9.4 billion in sales in 2021, 13 percent more than in 2020.

Subway’s global sales peaked in 2012, at $18 billion, but declined in subsequent years, says a Technomic report released by WSJ.

Since then, there have been store closures and the departure of franchisees.

Subway was led for decades by its co-founder, Fred DeLuca, who died of leukemia last decade and left the job to his sister, Suzanne Greco, until she retired in 2018.

She was succeeded by Peter Buck, a veteran of the brand. He was the one who became a co-founder when he loaned DeLuca $1,000 to open a sandwich shop in Bridgeport, Connecticut, in 1965. Buck died in 2021.

Since then, John Chidsey has been in charge, the first CEO to come from outside of Subway’s two founding families.

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