Created the first accessible franchise model for sandwiches — just $150K to open vs. $1M for McDonald's. Rode the low-fat health trend perfectly. Hit massive scale with 40,000+ locations by making fresh subs the affordable alternative to greasy burgers.
Growth-at-all-costs culture cannibalized its own stores. The $5 footlong trained customers to expect dirt-cheap calories, boxing the brand into value hell. Founder Fred DeLuca got sick in 2013, exposing zero succession planning. Competitors attacked from both sides — Chipotle and Jersey Mike's took quality seekers, Taco Bell took value hunters.
Same-store sales declining since 2012. Closed thousands of stores. Families sold to private equity for $9B in 2023 after failing to get $10B. New owners cleaning house, but 37,000 locations still standing on shaky ground.
