Subway, the iconic sandwich chain, has been sold to private equity firm Roark Capital in a historic deal worth approximately $9.6 billion. The sale marks the end of Subway’s six-decade-long run as a family-owned business.
Roark Capital, known for its investments in various restaurant chains such as Arby’s, Auntie Anne’s, Buffalo Wild Wings, Carvel, and Sonic, sees Subway as a valuable addition to its portfolio. However, the deal is still subject to regulatory approvals and customary closing conditions.
Despite facing challenges in recent years, Subway has managed to turn its fortunes around through menu revamps, store renovations, and international expansion. However, the number of Subway stores in the US has declined from a peak of 27,219 in 2015 to 20,576 in 2021.
Compared to its main competitors, Subway’s yearly sales at its US restaurants have been on the lower side. Roark Capital aims to address this issue by implementing strategies to improve sales and profitability. This includes consolidating the number of franchisees and introducing menu innovations to attract more customers.
The sale of Subway also marks a significant leadership change within the company. Trevor Haynes, president for Subway’s North America operations, will be leaving the company after 18 years. Douglas Fry will take over as the new leader of Subway’s Canada operations.
The future of Subway under Roark Capital’s ownership remains to be seen. With their expertise in the restaurant industry, Roark Capital is expected to bring fresh perspectives and resources to enhance Subway’s growth and competitiveness. As the deal moves forward, Subway enthusiasts and industry experts will be closely watching for any changes and innovations that might come their way.
Overall, this sale represents a major turning point for Subway, marking the end of an era for the family-owned business. With Roark Capital’s investment and strategic plans, Subway aims to regain its position as a leading player in the highly competitive fast-food industry.
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