Subway announced Thursday that management has reached an agreement to sell the company. With this, the restaurant chain will be removed from family ownership after six decades.
Subway announced Thursday that an agreement has been reached under which the restaurant chain will be sold to US private equity firm Roark Capital. With this, Subway changed ownership after six decades.
Although the company did not disclose the details of the deal, according to Reuters information Roark Capital will pay more than $9 billion (about 3,200 billion Hungarian forints) for the popular sandwich maker.
Although Subway has experienced rapid growth in recent years, high costs and increased competition have put the company in a difficult position. As reported by Origo, it was already clear that Subway management was expected to make a decision in favor of the sale.
By the way, the restaurant chain recently launched a special project, where the lucky person who agrees to officially change their name to Subway can get free sandwiches for life.
The deal will make Roark Capital one of the largest restaurant operators in the world. The company currently controls American restaurant giant Inspire Brands, which includes brands such as Arby’s and Buffalo Wild Wings. However, the most famous brand under Roark is the Dunkin’ chain, known for its donuts.
The Subway Company was founded in Bridgeport, Connecticut, in 1965 by 17-year-old Fred DeLuca and his family friend, Peter Buck. The restaurant was originally called Pete’s Super Submarines, and after several name changes, it was finally renamed Subway in 1972.
The restaurant quickly picked up, within two years they opened 16 sandwich shops in the USA, and then began building the franchise. There are currently approximately 37,000 subways operating in more than 100 countries under the franchise ownership system.
source: BBC
