Subway (Restaurant)
Content
Subway (restaurant)
From Wikipedia, the free encyclopedia
Subway (stylized as SUBWAY) is an American fast food restaurant franchise that
primarily sells submarine sandwiches (subs) and salads. It is owned and operated by
Doctor's Associates Inc. (trademarked as Subway IP Inc.) Subway is one of the fastest
growing franchises in the world, with 44,672 restaurants in 111 countries and territories
as of March 14, 2016. USA alone has 27,058 outlets.[1] It is the largest singlebrand
restaurant chain and the largest restaurant operator in the world.[2][3][4]
Subway's international headquarters is in Milford, Connecticut; five regional centers
support Subway's international operations. The regional offices for European franchises
are located in Amsterdam, Netherlands; the Australian and New Zealand locations are
supported from Brisbane, Australia; the Asian locations are supported from offices
located in Beirut, Lebanon, and Singapore; and the Latin America support center is in
Miami, Florida.[5]
Contents
Subway
Type
Privately held company
Industry
Restaurants
Genre
Fast food
Founded
Bridgeport, Connecticut, U.S.
(August 28, 1965)
Founders
Fred DeLuca
Peter Buck
Headquarters Milford, Connecticut, U.S.
1 History
1.1 Early history
2 Locations
3 Products
3.1 Regional variations
3.2 Nutritional content
4 Advertising
4.1 Jared Fogle
4.2 $5 footlongs
4.3 Sub Club
5 Controversies
5.1 Hepatitis A contamination
5.2 Sandwich size
5.3 Franchise relations
5.4 United Kingdom VAT treatment
5.5 Casey's trademark case against Subway
5.6 Ingredients
6 See also
7 References
8 External links
Number of
locations
44,672 restaurants in 111 countries[1]
Key people
Suzanne Greco, President
Products
Submarine sandwiches
Salads
Pizzas (some locations)
Owner
Doctor's Associates Inc.
Slogan
Founded on Fresh
Website
subway.com (http://subway.com)
History
Early history
In 1965, Fred DeLuca borrowed $1,000 from friend Peter Buck to start "Pete's Super Submarines" in
Bridgeport, Connecticut, and in the following year they formed Doctor's Associates Inc. to oversee
operations of the restaurants as the franchise expanded.[6] The holding company derives its name from
DeLuca's goal to earn enough from the business to pay tuition for medical school, as well as Buck's
having a doctorate in physics.[7] Doctor's Associates is not affiliated with, nor endorsed by, any
medical organization.[8] In 1968, the sandwich shop was renamed "Subway".[6]
Former Subway logo (1968–2002)
The first Subway on the West Coast was opened in Fresno, California, in 1978.[9] The first Subway
outside of North America opened in Bahrain in December 1984.[10] The first Subway in the United
Kingdom was opened in Brighton in 1996.[11] In 2004, Subway began opening stores in Walmart
supercenters, and surpassed the number of McDonald's locations inside U.S. Walmart stores in
2007.[12]
Since 2007, Subway has consistently ranked in Entrepreneur magazine's Top 500 Franchises list. It
ranked #2 in 2012. It also ranked #2 on the "Fastest Growing Franchise" and "Global Franchise"
lists.[13] At the end of 2010, Subway became the largest fast food chain worldwide, with 33,749
restaurants – 1,012 more than McDonald's.[14]
Locations
Subway restaurant in Pittsfield
Township, Michigan (2011)
Countries with Subway Restaurants
Countries with plans for Subway Restaurants
Products
Subway's core product is the submarine sandwich (or "sub"). In addition to these, the chain also sells
wraps, salad, and baked goods (including cookies, doughnuts, and muffins). While some menu items
vary between countries and markets, Subway's worldwide signature sub varieties include:[15]
B.L.T
Chicken Teriyaki
Italian B.M.T.
Meatball Marinara
Roasted Chicken
Steak & Cheese
Subway Club
Subway Melt
Tuna
Veggie Delite
A Subway Club 6" sandwich
Subway's bestselling sandwich,[16] the B.M.T., contains pepperoni, salami, and ham. The name originally stood for Brooklyn Manhattan
Transit, but now stands for "Bigger, Meatier, Tastier".[17]
Subway also sells breakfast sandwiches, English muffins, and flatbread. In 2006, "personal pizzas" debuted in some US markets. These are
made to order (like their subs) and heated for 85 seconds. Breakfast and pizza items are only available in some stores. In November 2009,
Subway signed a deal to serve exclusively Seattle's Best Coffee coffee as part of their breakfast menu in the US.[18]
A 2009 Zagat survey named Subway the best provider of "Healthy Options" (in the "Mega Chain" category). Subway was also first in "Top
Service" and "Most Popular" rankings. It placed second in "Top Overall", behind Wendy's.[19]
Regional variations
Subway's menu varies between countries, most significantly where there are religious requirements relating to the meats served.
In 2006, the first kosher Subway restaurant in the United States opened, in a suburb of Cleveland, Ohio in the Mandel JCC of Cleveland.
Former Subway spokesman Jared Fogle attended the opening. A press release stated, "With slight modifications, such as no porkbased
products, and the use of soybased cheese product, the menu is virtually identical to that of any other Subway restaurant."[20] Other openings
soon followed, briefly making Subway one of the largest U.S. kosher restaurant chains.[21] At their peak, 12 kosher Subway locations were
open in the U.S, including Kansas City and 5 in New York. As of 2011, only five remain: Cleveland, Miami, Los Angeles and two stores in
Maryland.[22] Franchisees who failed noted a lack of support from the parent location in advertising, higher costs of kosher food and
supervision, the inability to remain open on Saturdays, and that customers who do not keep kosher prefer the original menu and prices.[22]
Subway opened its first restaurant in India in 2001 in New Delhi. Subway restaurants in India do not serve beef and pork products in
deference to Hindu and Muslim beliefs respectively, and sell an extended vegetarian range due to the large number of vegetarians in the
country. There are 395 Subway restaurants in 68 cities of India as of January 2013.[23] On September 4, 2012, Subway opened its first all
vegetarian outlet on the campus of Lovely Professional University (LPU) in Jalandhar, Punjab.[24] On March 6, 2013, Subway opened its
second allvegetarian outlet also offering Jain food in Paldi, Ahmedabad.[25]
Nutritional content
In 2011, Subway introduced glutenfree bread and brownies to some locations in Texas.[26] It also cut the salt content of its sandwiches by 15
percent.[27]
In the United Kingdom and Ireland, Subway has reduced salt content across its entire range by 33% and has committed to further reductions,
in line with government targets.[28] Subway's range of "Low Fat" subs is endorsed by the charity Heart Research UK.[29]
Advertising
Subway is the secondbiggest fast food advertiser in the United States, behind only McDonald's. It
spent US$516,000,000 on measurable advertising in 2012.[30]
Subway uses the advertising slogan "Eat Fresh", and focuses on how their sandwiches are made from
freshly baked bread and fresh ingredients, in front of customers to their exact specifications, by
employees whom Subway calls "Subway Sandwich Artists".
In November 2007, Subway's US commercials featured the cartoon character Peter Griffin (from
Family Guy) promoting its new Subway Feast sandwich.[31] Subway has also used "instant win"
games, based on the game Scrabble.
Subway in Belo Horizonte, Brazil.
(2009)
Subway ran a product placement campaign in the US TV series Chuck since its first season. As ratings
dwindled in the second season, a campaign to "save Chuck" was launched for fans, encouraging them
to purchase a footlong sub from Subway on April 27, 2009, the date of the season finale. Tony Pace, Subway's marketing officer, called it the
best product placement the restaurant chain has done "in several years."[32]
To celebrate National Sandwich Day on November 3, 2015, Subway offered a Buy One sandwich, Give One sandwich free promotion.[33]
Jared Fogle
Jared Fogle was a national spokesman for the company in the US starting in January 2000, giving
talks on healthy living and appearing in advertisements. Fogle first came to attention in his native
Indiana by claiming that he lost over 200 pounds in part by eating at Subway. From 2008, he was
featured less often as the company marketed with more emphasis on their "5 dollar footlong"
campaign.[34] Subway attributed between one third and one half of their growth from 1998 to 2011 to
Fogle, the equivalent of a tripling in size.[35] Subway cut ties with Fogle on August 18, 2015 amid
expectations that he would plead guilty to child pornography and child molestation charges,[36][37]
which were confirmed the following day.[38] He has since been sentenced to more than 15 years in
federal prison.[39]
In December 2015, following the removal of Fogle from its marketing, Subway introduced a new
marketing campaign, "Founded on Fresh". The campaign focuses upon Subway's establishment and
Fogle in 2007
early history, and feature Fred DeLuca, as played by his son, Jonathon. The new campaign downplays
the use of jingles and celebrity endorsements (besides "targeted" sports marketing), in favor of
focusing upon the qualities of its products, and specific products. Chief advertising officer Chris Carroll explained that the focus on fat,
calories, and weight loss were "what fresh used to be", and that the new campaign would focus more on the sourcing of Subway's ingredients,
such as its phaseout of antibiotictreated meat. Carroll also explained that the new strategy was being developed prior to the controversy
involving Fogle.[40]
$5 footlongs
In 2008, Subway began to offer all footlong submarine sandwiches (excluding premium and doublemeat varieties) for five dollars, in the
continental United States and Canada, as a "limited time only" promotion. "Five Dollar Footlongs" quickly became the company's most
successful promotion ever.[41] Upon the initial promotion's completion, customer response prompted Subway to create a permanent "$5
Footlong Everyday Value Menu" that offered some footlong sandwiches for $5. As of 2011, there has been a monthly rotating $5 footlong.[42]
Which subs are permanently priced at $5 varies by market.
In October 2011, a similar promotion was launched in the United Kingdom. Customers can buy one of nine subs and any drink for £3 (for a
sixinch sub) or £5 (for a footlong).[43] On November 1, 2014, Subway discontinued the five dollar footlong promotion, replacing it with the
$6 sixinch select with a drink and a choice of cookies or chips.
Sub Club
In early June 2005, Subway announced its first customer reward program would be phased out due to
counterfeiting. The "Sub Club" program was discontinued in September 2013 by Doctor's
Associates.[44]
Participating Subway restaurants in the U.S. and Canada offer a "Subway Card" to customers, which
functions as a storedvalue cash card. In some states and provinces, the card also functions as a
"Subway Rewards Card", allowing customers to earn points for free food and sandwiches. Unlike in
the "Sub Club" program, no other purchase is needed when redeeming points, and registered cards can
be replaced if lost or stolen.[45] Subway runs periodic promotions in which it gives away free subs to
customers who preload a Subway Card with certain dollar amounts, usually listed at
mysubwaycard.com (http://www.mysubwaycard.com).
All stores in the United Kingdom and Ireland participate in the Subcard system, offering customers
points with each purchase at a Subway store, which are redeemable for subs and snacks. Unlike in the
US system, these cards cannot be used to store cash. The program was rolled out in Germany, and
other parts of Europe from 2012.[46]
Sub Club Cards and Sub Club stamps
Controversies
Hepatitis A contamination
In September 1999, at least 32 customers in the north Seattle area contracted hepatitis A after eating food contaminated with the virus at two
Subway outlets.[47] The virus, which is spread by eating or drinking food or water contaminated with infected feces, infects the liver causing
nausea, vomiting, diarrhea, fatigue and fever.[48] Subsequent investigations found that staff failed to adhere to thorough hand washing and the
use of plastic gloves during food preparation.[49] A classaction lawsuit on behalf of 31 victims was resolved for $1.6 million.[50][51] The most
seriously affected victim—a 6yearold boy—suffered acute liver failure and required a liver transplant. He was awarded $10 million in an
outofcourt settlement in 2001.[49] A previous outbreak of hepatitis A in 1996 had also involved a Subway outlet in the Seattle area, although
no legal action had resulted.[47]
In April 2015, the Arkansas Department of Health issued a warning to the public that customers who had eaten at the Subway outlet in
Morrilton, Arkansas, may have been exposed to infection after an employee tested positive for the virus.[52][53]
Sandwich size
On February 2, 2007, KNXVTV (with the help of the Arizona Department of Weights and Measures) reported that three of Subway's "Giant
Sub" sandwiches, nominally each 3foot (91 cm) long, were actually 2 feet 8 inches (81 cm), 2 feet 8.25 inches (81.92 cm), and 2 feet
8.5 inches (82.6 cm) long. The maximum variance in length allowed in Arizona is 3% (1.08 inches (2.7 cm), for a threefoot sub). The report
also showed the boxes designed to store these sandwiches were 2 feet 10.75 inches (88.27 cm) in length; shorter than the maximum allowable
variance. In response to the report, Subway stated they were reevaluating their advertising, training and packaging materials with regard to
the specific or implied length of Giant Subs, and were advising their franchisees to only discuss with customers the approximate number of
expected servings and not a specific length of measurement.[54]
In January 2013, an Australian teen, Matt Corby, complained on Facebook that Subway's "footlong" sandwich was only 11 inches (28 cm)
long, rather than 1 foot (30 cm). Subway responded by saying, "With regards to the size of the bread and calling it a footlong, 'Subway
Footlong' is a registered trademark as a descriptive name for the sub sold in Subway Restaurants and not intended to be a measurement of
length."[55] In most metricated countries such as Australia, the foot is no longer a government recognized unit of measurement. The story was
picked up by the New York Post who found similar cases in their investigation. Two New Jersey men are suing the company.[56] A man from
Chicago has also filed a suit. Both suits were filed on January 22, 2013.[57] Another New Jersey man filed a federal class action lawsuit with
the same allegations in 2013.[58]
Franchise relations
In 1995, Subway Sandwich Shops, Fred DeLuca, Peter Buck, and Doctor's Associates Inc. were held liable for breach of contract. An Illinois
jury awarded more than $10 million in damages to Nicholas and Victoria Jannotta after finding lease and contract violations. The plaintiffs
claimed the defendants had misrepresented the asset value of Subway Sandwich Shops (a leasing company used by Doctor's Associates for
franchising purposes) while negotiating a 1985 lease agreement.[59]
The U.S. House of Representatives' small business committee studied the franchise industry from 1992 to 1998. Dean Sagar noted, "Subway
is the biggest problem in franchising and emerges as one of the key examples of every abuse you can think of."[60] In 1989, the U.S. Small
Business Administration refused small business loans to Subway franchise owners until Subway removed a contract clause which gave it
power to seize and purchase any franchise without cause. The Dallas Morning News reported Subway had seized American soldier Leon
Batie Jr.'s Subway stores in 2006, while he was serving in Afghanistan.[61][62] He had been deployed to support Operation Enduring Freedom
in March 2005, three years after buying his first restaurant.[61][62] Batie alleged Subway had violated the U.S. Servicemembers Civil Relief
Act. He filed a federal lawsuit against Subway, which was dismissed. He then filed suit in state court, in Dallas County, Texas. Both parties
settled on "mutually agreeable" and confidential terms in January 2010.[63]
United Kingdom VAT treatment
In October 2010, Subway franchisees in the United Kingdom lost a high court appeal, against paying standard VAT on all toasted subs, as
required by HM Revenue and Customs. Thus, in the United Kingdom, a toasted sub attracts VAT, whereas a cold sub, eaten off the premises,
does not. Competitors such as Quiznos & McDonald's do not pay VAT on similar food.[64][65][66]
In March 2012, Chancellor of the Exchequer, George Osborne announced plans to close the loophole that allows Subway competitors to offer
hot food without paying VAT. This legislation was expected to come into force from October 2012 onward,[67] but the government withdrew
plans to charge VAT on originally hot food being allowed to cool naturally on 28 May 2012.[68] In June 2012, Subway launched the "Toast the
Tax" campaign to put pressure on the government to drop VAT on toasted sandwiches, as it has done for hot savouries.[69]
Casey's trademark case against Subway
On January 31, 2011, Subway lawyer, Valerie Pochron, wrote to Casey's General Stores, a chain of Iowabased convenience stores,
demanding the small chain to cease using the term "footlong" in advertisements for its 12inch sandwiches. Subway threatened to sue.
Consequently, in February 2011, Casey's General Stores Inc. filed a petition in a U.S. District Court in Des Moines, seeking a legal
declaration that the word "footlong" does not violate Subway's rights.[70] Casey's further sought a declaration that the word "footlong' is a
generic description of a sandwich measuring one foot.[71][72] Before serving its complaint on Subway, Casey's voluntarily dismissed its
action, ending the litigation.[73]
Subway's trademark application for "footlong" has yet to be approved by the federal government. Subway has attempted to register it with the
United States Patent and Trademark Office twice. They filed on November 8, 2007[74] and June 4, 2009.[75] A&W, Pizza Hut, KFC, Taco Bell
(all of which are Yum Brands restaurants), Long John Silver's and other restaurants are opposing that application.[76]
Ingredients
Subway made alterations to its bread after food blogger and activist Vani Hari gathered more than 50,000 signatures in a petition drive.
Subway removed azodicarbonamide from its bread.[77] Before Vani Hari's petition, Subway had used azodicarbonamide as a bread
conditioner, to whiten the dough and allow sandwich bread to bake more quickly.
See also
List of restaurant chains
List of submarine sandwich restaurants
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External links
Official website (http://subway.com) (Mobile (http://m.subway.com))
Subway's Nutritional Information (http://www.foodinfodb.com/restaurants/s/subway) at
FoodInfoDB.com (http://www.foodinfodb.com/)
Wikimedia Commons has
media related to Subway
restaurants.
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From Wikipedia, the free encyclopedia
Subway (stylized as SUBWAY) is an American fast food restaurant franchise that
primarily sells submarine sandwiches (subs) and salads. It is owned and operated by
Doctor's Associates Inc. (trademarked as Subway IP Inc.) Subway is one of the fastest
growing franchises in the world, with 44,672 restaurants in 111 countries and territories
as of March 14, 2016. USA alone has 27,058 outlets.[1] It is the largest singlebrand
restaurant chain and the largest restaurant operator in the world.[2][3][4]
Subway's international headquarters is in Milford, Connecticut; five regional centers
support Subway's international operations. The regional offices for European franchises
are located in Amsterdam, Netherlands; the Australian and New Zealand locations are
supported from Brisbane, Australia; the Asian locations are supported from offices
located in Beirut, Lebanon, and Singapore; and the Latin America support center is in
Miami, Florida.[5]
Contents
Subway
Type
Privately held company
Industry
Restaurants
Genre
Fast food
Founded
Bridgeport, Connecticut, U.S.
(August 28, 1965)
Founders
Fred DeLuca
Peter Buck
Headquarters Milford, Connecticut, U.S.
1 History
1.1 Early history
2 Locations
3 Products
3.1 Regional variations
3.2 Nutritional content
4 Advertising
4.1 Jared Fogle
4.2 $5 footlongs
4.3 Sub Club
5 Controversies
5.1 Hepatitis A contamination
5.2 Sandwich size
5.3 Franchise relations
5.4 United Kingdom VAT treatment
5.5 Casey's trademark case against Subway
5.6 Ingredients
6 See also
7 References
8 External links
Number of
locations
44,672 restaurants in 111 countries[1]
Key people
Suzanne Greco, President
Products
Submarine sandwiches
Salads
Pizzas (some locations)
Owner
Doctor's Associates Inc.
Slogan
Founded on Fresh
Website
subway.com (http://subway.com)
History
Early history
In 1965, Fred DeLuca borrowed $1,000 from friend Peter Buck to start "Pete's Super Submarines" in
Bridgeport, Connecticut, and in the following year they formed Doctor's Associates Inc. to oversee
operations of the restaurants as the franchise expanded.[6] The holding company derives its name from
DeLuca's goal to earn enough from the business to pay tuition for medical school, as well as Buck's
having a doctorate in physics.[7] Doctor's Associates is not affiliated with, nor endorsed by, any
medical organization.[8] In 1968, the sandwich shop was renamed "Subway".[6]
Former Subway logo (1968–2002)
The first Subway on the West Coast was opened in Fresno, California, in 1978.[9] The first Subway
outside of North America opened in Bahrain in December 1984.[10] The first Subway in the United
Kingdom was opened in Brighton in 1996.[11] In 2004, Subway began opening stores in Walmart
supercenters, and surpassed the number of McDonald's locations inside U.S. Walmart stores in
2007.[12]
Since 2007, Subway has consistently ranked in Entrepreneur magazine's Top 500 Franchises list. It
ranked #2 in 2012. It also ranked #2 on the "Fastest Growing Franchise" and "Global Franchise"
lists.[13] At the end of 2010, Subway became the largest fast food chain worldwide, with 33,749
restaurants – 1,012 more than McDonald's.[14]
Locations
Subway restaurant in Pittsfield
Township, Michigan (2011)
Countries with Subway Restaurants
Countries with plans for Subway Restaurants
Products
Subway's core product is the submarine sandwich (or "sub"). In addition to these, the chain also sells
wraps, salad, and baked goods (including cookies, doughnuts, and muffins). While some menu items
vary between countries and markets, Subway's worldwide signature sub varieties include:[15]
B.L.T
Chicken Teriyaki
Italian B.M.T.
Meatball Marinara
Roasted Chicken
Steak & Cheese
Subway Club
Subway Melt
Tuna
Veggie Delite
A Subway Club 6" sandwich
Subway's bestselling sandwich,[16] the B.M.T., contains pepperoni, salami, and ham. The name originally stood for Brooklyn Manhattan
Transit, but now stands for "Bigger, Meatier, Tastier".[17]
Subway also sells breakfast sandwiches, English muffins, and flatbread. In 2006, "personal pizzas" debuted in some US markets. These are
made to order (like their subs) and heated for 85 seconds. Breakfast and pizza items are only available in some stores. In November 2009,
Subway signed a deal to serve exclusively Seattle's Best Coffee coffee as part of their breakfast menu in the US.[18]
A 2009 Zagat survey named Subway the best provider of "Healthy Options" (in the "Mega Chain" category). Subway was also first in "Top
Service" and "Most Popular" rankings. It placed second in "Top Overall", behind Wendy's.[19]
Regional variations
Subway's menu varies between countries, most significantly where there are religious requirements relating to the meats served.
In 2006, the first kosher Subway restaurant in the United States opened, in a suburb of Cleveland, Ohio in the Mandel JCC of Cleveland.
Former Subway spokesman Jared Fogle attended the opening. A press release stated, "With slight modifications, such as no porkbased
products, and the use of soybased cheese product, the menu is virtually identical to that of any other Subway restaurant."[20] Other openings
soon followed, briefly making Subway one of the largest U.S. kosher restaurant chains.[21] At their peak, 12 kosher Subway locations were
open in the U.S, including Kansas City and 5 in New York. As of 2011, only five remain: Cleveland, Miami, Los Angeles and two stores in
Maryland.[22] Franchisees who failed noted a lack of support from the parent location in advertising, higher costs of kosher food and
supervision, the inability to remain open on Saturdays, and that customers who do not keep kosher prefer the original menu and prices.[22]
Subway opened its first restaurant in India in 2001 in New Delhi. Subway restaurants in India do not serve beef and pork products in
deference to Hindu and Muslim beliefs respectively, and sell an extended vegetarian range due to the large number of vegetarians in the
country. There are 395 Subway restaurants in 68 cities of India as of January 2013.[23] On September 4, 2012, Subway opened its first all
vegetarian outlet on the campus of Lovely Professional University (LPU) in Jalandhar, Punjab.[24] On March 6, 2013, Subway opened its
second allvegetarian outlet also offering Jain food in Paldi, Ahmedabad.[25]
Nutritional content
In 2011, Subway introduced glutenfree bread and brownies to some locations in Texas.[26] It also cut the salt content of its sandwiches by 15
percent.[27]
In the United Kingdom and Ireland, Subway has reduced salt content across its entire range by 33% and has committed to further reductions,
in line with government targets.[28] Subway's range of "Low Fat" subs is endorsed by the charity Heart Research UK.[29]
Advertising
Subway is the secondbiggest fast food advertiser in the United States, behind only McDonald's. It
spent US$516,000,000 on measurable advertising in 2012.[30]
Subway uses the advertising slogan "Eat Fresh", and focuses on how their sandwiches are made from
freshly baked bread and fresh ingredients, in front of customers to their exact specifications, by
employees whom Subway calls "Subway Sandwich Artists".
In November 2007, Subway's US commercials featured the cartoon character Peter Griffin (from
Family Guy) promoting its new Subway Feast sandwich.[31] Subway has also used "instant win"
games, based on the game Scrabble.
Subway in Belo Horizonte, Brazil.
(2009)
Subway ran a product placement campaign in the US TV series Chuck since its first season. As ratings
dwindled in the second season, a campaign to "save Chuck" was launched for fans, encouraging them
to purchase a footlong sub from Subway on April 27, 2009, the date of the season finale. Tony Pace, Subway's marketing officer, called it the
best product placement the restaurant chain has done "in several years."[32]
To celebrate National Sandwich Day on November 3, 2015, Subway offered a Buy One sandwich, Give One sandwich free promotion.[33]
Jared Fogle
Jared Fogle was a national spokesman for the company in the US starting in January 2000, giving
talks on healthy living and appearing in advertisements. Fogle first came to attention in his native
Indiana by claiming that he lost over 200 pounds in part by eating at Subway. From 2008, he was
featured less often as the company marketed with more emphasis on their "5 dollar footlong"
campaign.[34] Subway attributed between one third and one half of their growth from 1998 to 2011 to
Fogle, the equivalent of a tripling in size.[35] Subway cut ties with Fogle on August 18, 2015 amid
expectations that he would plead guilty to child pornography and child molestation charges,[36][37]
which were confirmed the following day.[38] He has since been sentenced to more than 15 years in
federal prison.[39]
In December 2015, following the removal of Fogle from its marketing, Subway introduced a new
marketing campaign, "Founded on Fresh". The campaign focuses upon Subway's establishment and
Fogle in 2007
early history, and feature Fred DeLuca, as played by his son, Jonathon. The new campaign downplays
the use of jingles and celebrity endorsements (besides "targeted" sports marketing), in favor of
focusing upon the qualities of its products, and specific products. Chief advertising officer Chris Carroll explained that the focus on fat,
calories, and weight loss were "what fresh used to be", and that the new campaign would focus more on the sourcing of Subway's ingredients,
such as its phaseout of antibiotictreated meat. Carroll also explained that the new strategy was being developed prior to the controversy
involving Fogle.[40]
$5 footlongs
In 2008, Subway began to offer all footlong submarine sandwiches (excluding premium and doublemeat varieties) for five dollars, in the
continental United States and Canada, as a "limited time only" promotion. "Five Dollar Footlongs" quickly became the company's most
successful promotion ever.[41] Upon the initial promotion's completion, customer response prompted Subway to create a permanent "$5
Footlong Everyday Value Menu" that offered some footlong sandwiches for $5. As of 2011, there has been a monthly rotating $5 footlong.[42]
Which subs are permanently priced at $5 varies by market.
In October 2011, a similar promotion was launched in the United Kingdom. Customers can buy one of nine subs and any drink for £3 (for a
sixinch sub) or £5 (for a footlong).[43] On November 1, 2014, Subway discontinued the five dollar footlong promotion, replacing it with the
$6 sixinch select with a drink and a choice of cookies or chips.
Sub Club
In early June 2005, Subway announced its first customer reward program would be phased out due to
counterfeiting. The "Sub Club" program was discontinued in September 2013 by Doctor's
Associates.[44]
Participating Subway restaurants in the U.S. and Canada offer a "Subway Card" to customers, which
functions as a storedvalue cash card. In some states and provinces, the card also functions as a
"Subway Rewards Card", allowing customers to earn points for free food and sandwiches. Unlike in
the "Sub Club" program, no other purchase is needed when redeeming points, and registered cards can
be replaced if lost or stolen.[45] Subway runs periodic promotions in which it gives away free subs to
customers who preload a Subway Card with certain dollar amounts, usually listed at
mysubwaycard.com (http://www.mysubwaycard.com).
All stores in the United Kingdom and Ireland participate in the Subcard system, offering customers
points with each purchase at a Subway store, which are redeemable for subs and snacks. Unlike in the
US system, these cards cannot be used to store cash. The program was rolled out in Germany, and
other parts of Europe from 2012.[46]
Sub Club Cards and Sub Club stamps
Controversies
Hepatitis A contamination
In September 1999, at least 32 customers in the north Seattle area contracted hepatitis A after eating food contaminated with the virus at two
Subway outlets.[47] The virus, which is spread by eating or drinking food or water contaminated with infected feces, infects the liver causing
nausea, vomiting, diarrhea, fatigue and fever.[48] Subsequent investigations found that staff failed to adhere to thorough hand washing and the
use of plastic gloves during food preparation.[49] A classaction lawsuit on behalf of 31 victims was resolved for $1.6 million.[50][51] The most
seriously affected victim—a 6yearold boy—suffered acute liver failure and required a liver transplant. He was awarded $10 million in an
outofcourt settlement in 2001.[49] A previous outbreak of hepatitis A in 1996 had also involved a Subway outlet in the Seattle area, although
no legal action had resulted.[47]
In April 2015, the Arkansas Department of Health issued a warning to the public that customers who had eaten at the Subway outlet in
Morrilton, Arkansas, may have been exposed to infection after an employee tested positive for the virus.[52][53]
Sandwich size
On February 2, 2007, KNXVTV (with the help of the Arizona Department of Weights and Measures) reported that three of Subway's "Giant
Sub" sandwiches, nominally each 3foot (91 cm) long, were actually 2 feet 8 inches (81 cm), 2 feet 8.25 inches (81.92 cm), and 2 feet
8.5 inches (82.6 cm) long. The maximum variance in length allowed in Arizona is 3% (1.08 inches (2.7 cm), for a threefoot sub). The report
also showed the boxes designed to store these sandwiches were 2 feet 10.75 inches (88.27 cm) in length; shorter than the maximum allowable
variance. In response to the report, Subway stated they were reevaluating their advertising, training and packaging materials with regard to
the specific or implied length of Giant Subs, and were advising their franchisees to only discuss with customers the approximate number of
expected servings and not a specific length of measurement.[54]
In January 2013, an Australian teen, Matt Corby, complained on Facebook that Subway's "footlong" sandwich was only 11 inches (28 cm)
long, rather than 1 foot (30 cm). Subway responded by saying, "With regards to the size of the bread and calling it a footlong, 'Subway
Footlong' is a registered trademark as a descriptive name for the sub sold in Subway Restaurants and not intended to be a measurement of
length."[55] In most metricated countries such as Australia, the foot is no longer a government recognized unit of measurement. The story was
picked up by the New York Post who found similar cases in their investigation. Two New Jersey men are suing the company.[56] A man from
Chicago has also filed a suit. Both suits were filed on January 22, 2013.[57] Another New Jersey man filed a federal class action lawsuit with
the same allegations in 2013.[58]
Franchise relations
In 1995, Subway Sandwich Shops, Fred DeLuca, Peter Buck, and Doctor's Associates Inc. were held liable for breach of contract. An Illinois
jury awarded more than $10 million in damages to Nicholas and Victoria Jannotta after finding lease and contract violations. The plaintiffs
claimed the defendants had misrepresented the asset value of Subway Sandwich Shops (a leasing company used by Doctor's Associates for
franchising purposes) while negotiating a 1985 lease agreement.[59]
The U.S. House of Representatives' small business committee studied the franchise industry from 1992 to 1998. Dean Sagar noted, "Subway
is the biggest problem in franchising and emerges as one of the key examples of every abuse you can think of."[60] In 1989, the U.S. Small
Business Administration refused small business loans to Subway franchise owners until Subway removed a contract clause which gave it
power to seize and purchase any franchise without cause. The Dallas Morning News reported Subway had seized American soldier Leon
Batie Jr.'s Subway stores in 2006, while he was serving in Afghanistan.[61][62] He had been deployed to support Operation Enduring Freedom
in March 2005, three years after buying his first restaurant.[61][62] Batie alleged Subway had violated the U.S. Servicemembers Civil Relief
Act. He filed a federal lawsuit against Subway, which was dismissed. He then filed suit in state court, in Dallas County, Texas. Both parties
settled on "mutually agreeable" and confidential terms in January 2010.[63]
United Kingdom VAT treatment
In October 2010, Subway franchisees in the United Kingdom lost a high court appeal, against paying standard VAT on all toasted subs, as
required by HM Revenue and Customs. Thus, in the United Kingdom, a toasted sub attracts VAT, whereas a cold sub, eaten off the premises,
does not. Competitors such as Quiznos & McDonald's do not pay VAT on similar food.[64][65][66]
In March 2012, Chancellor of the Exchequer, George Osborne announced plans to close the loophole that allows Subway competitors to offer
hot food without paying VAT. This legislation was expected to come into force from October 2012 onward,[67] but the government withdrew
plans to charge VAT on originally hot food being allowed to cool naturally on 28 May 2012.[68] In June 2012, Subway launched the "Toast the
Tax" campaign to put pressure on the government to drop VAT on toasted sandwiches, as it has done for hot savouries.[69]
Casey's trademark case against Subway
On January 31, 2011, Subway lawyer, Valerie Pochron, wrote to Casey's General Stores, a chain of Iowabased convenience stores,
demanding the small chain to cease using the term "footlong" in advertisements for its 12inch sandwiches. Subway threatened to sue.
Consequently, in February 2011, Casey's General Stores Inc. filed a petition in a U.S. District Court in Des Moines, seeking a legal
declaration that the word "footlong" does not violate Subway's rights.[70] Casey's further sought a declaration that the word "footlong' is a
generic description of a sandwich measuring one foot.[71][72] Before serving its complaint on Subway, Casey's voluntarily dismissed its
action, ending the litigation.[73]
Subway's trademark application for "footlong" has yet to be approved by the federal government. Subway has attempted to register it with the
United States Patent and Trademark Office twice. They filed on November 8, 2007[74] and June 4, 2009.[75] A&W, Pizza Hut, KFC, Taco Bell
(all of which are Yum Brands restaurants), Long John Silver's and other restaurants are opposing that application.[76]
Ingredients
Subway made alterations to its bread after food blogger and activist Vani Hari gathered more than 50,000 signatures in a petition drive.
Subway removed azodicarbonamide from its bread.[77] Before Vani Hari's petition, Subway had used azodicarbonamide as a bread
conditioner, to whiten the dough and allow sandwich bread to bake more quickly.
See also
List of restaurant chains
List of submarine sandwich restaurants
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External links
Official website (http://subway.com) (Mobile (http://m.subway.com))
Subway's Nutritional Information (http://www.foodinfodb.com/restaurants/s/subway) at
FoodInfoDB.com (http://www.foodinfodb.com/)
Wikimedia Commons has
media related to Subway
restaurants.
Retrieved from "https://en.wikipedia.org/w/index.php?title=Subway_(restaurant)&oldid=710757458"
Categories: Subway (restaurant) American brands Companies based in Fairfield County, Connecticut
Companies based in New Haven County, Connecticut Fastfood chains of Australia Fastfood chains of Canada
Fastfood chains of Singapore Fastfood chains of the United Kingdom Fastfood chains of the United States Fastfood franchises
Multinational food companies Privately held companies based in Connecticut Restaurant chains in Singapore
Restaurant chains in the United States Restaurant franchises Restaurants established in 1965 Restaurants in Connecticut
Submarine sandwich restaurants
This page was last modified on 18 March 2016, at 21:50.
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