Image: JIM WATSON (AFP)
No information was given on the exact amount. Insiders said earlier in the week Roark wanted to put down more than $9 billion for Subway. Roark is no stranger to the industry, with the investor already controlling US chains like Jimmy John’s, Arby’s, Baskin-Robbins and Buffalo Wild Wings. Subway was founded in 1965 by the then 17-year-old Fred DeLuca and his friend Peter Buck, and the first branch was “Pete’s Super Submarines” in Bridgeport, Connecticut. Subway has been family owned ever since. The company also expanded by granting franchise licenses to independent landlords.
Around 37,000 restaurants in more than 100 countries around the world sell sandwiches under the Subway logo. In the US home market, however, the chain had recently suffered from low margins, outdated branches and fierce competition. The owner families also wanted to redesign the franchise model. Subway also has franchise branches in Austria, including those in Linz, Pasching, Wels and Ried im Innkreis.
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