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đź”´ PRIVATE EQUITY OWNED
Subway
fast food · Shelton, CT
PE Firm
Roark Capital
Year Acquired
2024
“The world's largest restaurant chain sold to PE for $9.55 billion. Footlongs measured at your own risk.”
The PE Playbook
- •Roark Capital acquired Subway for $9.55 billion in 2024 — the largest restaurant PE deal ever, adding it to an empire that includes Arby's, Dunkin', and Jimmy John's
- •Subway had lost over 7,000 U.S. locations from its 2015 peak of ~27,000 before the sale, a sign of years of declining traffic
- •Founder Fred DeLuca's estate sold after years of quality complaints, the infamous 'footlong' measurement scandal, and a 2015 spokesperson crisis
- •Roark now controls roughly 1 in every 13 franchise restaurants in the United States
Since the Acquisition
- ▸Net loss of 631 U.S. locations in 2024 alone — down below 20,000 stores from a peak of 27,000 in 2015
- ▸The $5 Footlong is long gone — footlongs now cost $7 to $15, and a $6.99 promotional footlong launched in August 2024 was quietly dropped because franchisees were losing money on every sandwich
- â–¸Franchisees threatened with termination if they don't complete a $100,000+ 'Fresh Forward 2.0' store remodel, accelerating closures
- â–¸A 23-unit franchisee shut down entirely as franchise operators walk away at accelerating rates