King of Subs Shows the Way to Riches by Making a Custom-Built Sandwich

Entrepreneurs who believe that the American Dream can be found in a foot-long submarine sandwich travel here each month to learn how to make mounds of money stuffing pounds of food into fresh-baked buns.

Their teacher and inspiration is Fred DeLuca, the man who would be, and is, King of Subs.

Twenty-three years after DeLuca opened his first sub shop in nearby Bridgeport to raise money for college, his fast-food chain has grown to more than 2,200 stores, and new shops are opening at a rate of between 20 and 30 a week.

His company, Subway Sandwiches & Salads, is one of the fastest-growing, fast-food chains in the country and was recently named America’s top franchise by the magazine Entrepreneur, which compiles a Franchise 500.

Subway subs are being gobbled up at quite a clip. The chain says it is selling 1.5 million feet of sandwiches a week to customers who like to watch their meals take shape before their eyes and to their specifications.

Last year, gross sales totaled $360 million--an 89% increase over the year before, when there were only about half as many franchises.

Subway has its origins in Pete’s Super Submarine Sandwiches, a business DeLuca opened in 1965 at age 17 with the help of a family friend, Peter Buck. As the story is told, Buck suggested the idea to DeLuca as a way for him to make money for college, gave him $1,000 in starting capital and agreed to be his partner.

Aided by the decision in 1975 to start franchising, the company was able to meet its 10-year goal of 32 stores and began expanding in earnest. Subway opened its first store in Alaska last spring and will soon have franchises in every state except Wyoming and South Dakota.