Subway has been growing rapidly for several years, but now faces soaring costs and increased competition. According to the Wall Street Journal, it is therefore considering the possibility of a sale, which could be worth more than 10 billion dollars, i.e. 220 billion crowns. Subway has 20 restaurants in the Czech Republic, and there are tens of thousands of establishments worldwide.
Investment bank JP Morgan is advising Subway on the potential sale. Subway said it did not intend to provide any further information about the process until it is complete, and did not say how long it might take.
According to the BBC, the company announced earlier this month that it had posted record sales for the second year in a row. Subway said same-store sales rose 9.2% last year compared to 2021.
It added that it will “continue to execute its multi-year transformation journey,” which includes new menu items and restaurant upgrades.
From a business of two friends to a giant
Subway was founded in 1965 as Pete’s Super Submarines in Bridgeport, Connecticut by 17-year-old Fred DeLuca and family friend Peter Buck. The company went through several name changes before being renamed Subway in 1972.
Within two years, they opened 16 sandwich shops in their home state and then began franchising the brand. Now it has almost 37,000 stores in more than 100 countries.
Subway restaurants are owned and operated by franchisees, which include thousands of entrepreneurs and small business owners.
In recent months, businesses around the world have been grappling with the rising costs of everything from food to fuel, which is why all fast food chains are grappling with the question of whether to raise prices even as they try to keep prices constant and familiar to customers, notes the BBC.
