Subway co-founder Fred DeLuca has died

SUBWAY co-founder Fred DeLuca has died, aged 67, leaving behind a fast food empire that grew from a single sandwich shop he started half a century ago.

Subway co-founder Fred DeLuca dies at 67

SUBWAY co-founder Fred DeLuca has died, aged 67, two years after being diagnosed with leukaemia.

Mr DeLuca’s death on Monday came weeks after the 50th anniversary of Subway, the world’s biggest restaurant chain by locations with 44,270 outlets across the globe, with the biggest representation outside North America in Australia, China, India and Europe.

Sales totalled $16.65 billion last year, according to Technomic, a food industry consultant.

And it all started with a $1399 loan in 1965, which allowed a 17-year-old Mr DeLuca to open a sandwich shop to help pay for college after graduating high school. The idea came from a family friend, Peter Buck, who was co-founder and provided the $1000 to start the business.

“I knew nothing about making sandwiches, nor the food industry,” Mr DeLuca later wrote in a book.

Mr DeLuca and Mr Buck opened their first store in Bridgeport, Connecticut, under the name Pete’s Super Submarines, with the priciest sub selling for 69 cents. The name was changed to the snappier Subway in 1968, and the pair decided to fuel growth by franchising, or letting others open Subway stores in exchange for fees.

By 1988, Subway had 2000 locations. By 1990, it reached the 5000-store mark. And by 1994, it had more than 8000 locations.

Fred DeLuca is pictured at the Oxford St, Sydney outlet of his sandwich chain in 1995.

Subway successfully pitched itself as a healthier alternative to McDonald’s and other chains with servers freshly preparing the sometimes foot-long sandwiches before the customer.

Based in Milford, Connecticut, the company is privately held and provides few glimpses into its inner workings. But in July 2013, the company announced that Mr DeLuca had been diagnosed with leukaemia. It said Mr DeLuca was in regular contact with his management team, but on a reduced basis as he received treatment.

Then earlier this summer, Subway said Mr DeLuca’s younger sister, Suzanne Greco, would take over as president and oversee day-to-day operations. Mr DeLuca remained as chief executive.

Subway has been facing some recent challenges in addition to Mr DeLuca’s health. The company cut ties with longtime pitchman Jared Fogle earlier this year after Fogle agreed to plead guilty to allegations he paid for sex acts with minors and received child pornography.

Fogle had been at the centre of a long-running advertising campaign claiming he lost 90kg in college by eating healthily at Subway sandwich shops.

Some commentators argue that Subway has overextended itself with its more than 27,000 US locations. Last year, average sales at established US locations fell 3 per cent, according to Technomic.

In Mr DeLuca’s book, Start Small Finish Big: Fifteen Key Lessons to Start — and Run — Your Own Successful Business, Mr DeLuca recalled living in public housing in the Bronx as a child. His father hadn’t graduated high school, but his mother had stressed the importance of education while growing up.

After he graduated high school, Mr DeLuca had planned on becoming a doctor. That was why he started the sub shop with Mr Buck — to support his college education.

“It wasn’t intended to support me forever,” Mr DeLuca wrote.

Mr DeLuca is survived by his wife, son and sister.