Subway (restaurant)

Subway's menu varies between countries, most significantly where religious requirements relate 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 Jewish Community Center of Cleveland. Former Subway spokesman Jared Fogle attended the opening. A press release stated, "With slight modifications, such as no pork-based products, and the use of soy-based cheese product, the menu is virtually identical to that of any other Subway restaurant."[54] Other openings soon followed, briefly making Subway one of the largest U.S. kosher restaurant chains.[55] At their peak, twelve kosher Subway locations were open in the U.S., including Kansas City and 5 in New York. As of 2023, only one kosher Subway remains, in Miami, FL. 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.[56]

Subway opened its first restaurant in India in 2001 in New Delhi. In deference to Hindu beliefs, Subway restaurants in India do not serve beef products; on the other hand, the country's large number of vegetarians induced Subway's Indian outlets to offer a much-extended range of vegetarian options. As of January 2017, there were 591 Subway restaurants in 68 Indian cities.[3] On September 4, 2012, Subway opened its first all-vegetarian outlet on the campus of Lovely Professional University (LPU) in Jalandhar, Punjab.[57] On March 6, 2013, Subway opened its second all-vegetarian outlet also offering Jain food in Paldi, Ahmedabad.[58]

In 2011, Subway introduced gluten-free bread and brownies to some locations in Texas.[59] It also cut the salt content of its sandwiches by 15 percent in 2011.[60]

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.[61] Subway's range of "Low Fat" subs is endorsed by the charity Heart Research UK.[62]

Jared Fogle in 2007

Beginning in January 2000, Jared Fogle was a national spokesman for the company in the US, 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. After 2008, he was featured less often as the company marketed with more emphasis on its "5 dollar footlong" campaign.[70] Subway attributed between one-third and one-half of its growth from 1998 to 2011 to Fogle, the equivalent of a tripling in size.[71] Subway ended its relationship with Fogle in 2015 after he was charged with possession of child pornography and illicit sexual conduct with a minor. After pleading guilty in August 2015, he was sentenced to more than 15 years in federal prison three months later.[72][73][74]

In December 2015, following the removal of Fogle from its marketing, Subway introduced a new marketing campaign, "Founded on Fresh". The campaign focuses on Subway's establishment and early history and features Fred DeLuca, as played by his son, Jonathan. The new campaign downplays the use of jingles and celebrity endorsements (besides "targeted" sports marketing) in favor of focusing on 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 phase-out of antibiotic-treated meat. Carroll also explained that the new strategy was being developed prior to the controversy involving Fogle.[75]

In 2008, Subway began to offer all foot-long submarine sandwiches (excluding the premium and double-meat 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.[77] 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. Since 2011, there has been a monthly rotating $5 footlong.[70] 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 six-inch sub) or £5 (for a footlong).[78]

In 2012, San Francisco restaurants discontinued the five-dollar footlong promotion due to the higher cost of doing business in the city.[79] From June 2014 to the end of that year, some Subway locations began discontinuing the $5 dollar promotion.[80] On November 1, 2014, Subway discontinued the five-dollar footlong promotion, replacing it with the Simple $6 Menu which included a six-inch select with a drink and a choice of cookies or chips.[81][82]

In February 2016, the company announced that all classic footlongs would be priced at $6 each.[83]

In January 2018, the $5 promotion returned with a $4.99 footlong menu of five subs at participating locations.[84][85][86]

In September 2018, Subway announced that they were going to discontinue the $5 footlong promotion in order to boost their franchise profits.[87]

In early 2017, Subway introduced its Italian Hero and advertised it with a campaign describing it as an authentic Italian(-American) sandwich. Created by their national creative agency MMB, two comedic spots feature Italian-American characters on and around the stoop of a tenement building, one including a cameo by sportscaster Dick Vitale. Another ad features Food Network's Jeff Mauro, the "Sandwich King", who is also Italian-American,[88] discussing the nature and role of the different Italian meats and other ingredients.[89][90][91][92][93][94]

In July 2021, Subway debuted its "Refresh" campaign featuring: Tom Brady, Stephen Curry, Serena Williams, and Megan Rapinoe.[95] Subway franchisees requested Rapinoe be pulled from the ads following the 2020 Olympics, claiming her testimonial caused sales to dip and harmed the stores' reputation.[96]

In September 1999, at least 32 customers in Seattle contracted hepatitis A after eating food contaminated with the virus at two Subway outlets.[102] 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.[103] Subsequent investigations found that staff failed to adhere to thorough hand washing and the use of plastic gloves during food preparation.[104] A class-action lawsuit on behalf of 31 victims was resolved for $1.6 million.[105][106] The most seriously affected victim—a 6-year-old boy—suffered acute liver failure and required a liver transplant. He was awarded $10 million in an out-of-court settlement in 2001.[104] A previous outbreak of hepatitis A in 1996 had also involved a Subway outlet in Seattle, although no legal action had resulted.[102]

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.[107][108]

On February 2, 2007, KNXV-TV (with the help of the Arizona Department of Weights and Measures) reported that three of Subway's "Giant Sub" sandwiches, nominally each 3-foot (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 three-foot 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 said it was reevaluating its advertising, training, and packaging materials with regard to the specific or implied length of Giant Subs and was advising its franchisees to only discuss with customers the approximate number of expected servings and not a specific length of measurement.[109]

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."[110] Discovery during a subsequent class-action lawsuit revealed that most Subway sandwiches were the advertised length. A $530,000 settlement was thrown out of court in 2017 for being "utterly worthless" to consumers.[111][112]

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.[113]

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."[114] 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 the 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.[115] He had been deployed to support Operation Enduring Freedom in March 2005, three years after buying his first restaurant.[115] 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.[116]

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 and McDonald's do not pay VAT on similar food.[117][118][119]

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,[120] but on May 28, 2012, the government withdrew plans to charge VAT on originally hot food being allowed to cool naturally.[121] 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.[122]

On January 31, 2011, Subway lawyer Valerie Pochron wrote to Casey's General Stores, a chain of Iowa-based convenience stores, demanding that the small chain cease using the term "footlong" in advertisements for its 12-inch 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.[123] Casey's further sought a declaration that the word "footlong" is a generic description of a sandwich measuring one foot.[124][125] Before serving its complaint on Subway, Casey's voluntarily dismissed its action, ending the litigation.[126]

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. It filed on November 8, 2007,[127] and June 4, 2009.[128] Both filings have been abandoned, on November 20, 2013, and August 21, 2014, respectively. Yum Brands (KFC, Pizza Hut, Taco Bell, and non-Canadian A&W locations), Long John Silver's, and other competitors opposed the applications.[123]

Subway removed azodicarbonamide from its bread after food blogger and activist Vani Hari gathered more than 50,000 signatures in a petition drive.[129] 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. As of 2016, the ingredient was still used by other fast food restaurants.[130]

In August 2015, Vani Hari again petitioned Subway in conjunction with Natural Resources Defense Council, Friends of the Earth, the Center for Food Safety, U.S. Public Interest Research Group to commit to buying meat produced without the routine use of antibiotics and to provide a timeline for doing so.[131] In October 2015, Subway announced it would transition to chicken raised without antibiotics in 2016 and turkey within the following 2–3 years, and would also transition beef and pork raised without antibiotics by 2025.[132][133]

In 2020, the Supreme Court of Ireland ruled that Subway bread had too high a sugar content to be classed as bread for VAT reasons, with its recipe including sugar equal to 10% of the weight of the flour.[134]

In 2021, a lawsuit was filed against the company alleging that the ingredient Subway bills as "tuna" was a mixture of "various concoctions that do not constitute tuna, yet have been blended together by defendants to imitate the appearance of tuna". The company's senior director for global food safety and quality said in a statement that "Our restaurants receive pure tuna, mix it with mayonnaise and serve on a freshly made sandwich to our guests."[135] The investigative TV show Inside Edition sent samples of Subway's tuna salad to Applied Food Technologies, a Florida company that carries out DNA testing of seafood. According to that company, "Yes, we confirmed that tuna was definitely in all three samples we received."[136] Subway established a website, SubwayTunaFacts.com, to refute the claims that they did not use real tuna, which they have denied unambiguously.[137]

In an investigation by the Canadian Broadcasting Corporation (CBC)'s consumer affairs television series Marketplace aired in February 2017, chicken from five fast-food restaurants was lab-tested to determine constituents. While DNA testing found between 84.9% and 89.4% of the DNA from other restaurants' chicken products to be chicken DNA, with the remaining being unidentifiable plant DNA, on the two Subway chicken items tested, 53.6% and 42.8% of the DNA was found to be chicken, with the remainder being mostly soy. Although ingredients listings did show soy protein to be a constituent of both of the chicken products, Subway states that the proportion is less than or equal to 1% and that the finding of about 50% soy DNA is not representative of the actual amount of soy in the product. Subway has called CBC's report "absolutely false and misleading" and demanded that it be retracted. Meanwhile, however, Subway Canada stated that it was investigating with its supplier to ensure that the proportion of soy protein was as per expectations.[138][139][140][141][142]

According to Subway's website, U.S. stores' ingredients may differ from those in Canadian stores. Both countries include soy protein in chicken strips, but only the U.S. version states that it is present in quantities of 2% or less. The Canadian version includes soy as an ingredient in its chicken patty, but the United States version does not.[143]

In April 2017, Subway sued the CBC, as well as the reporter and two producers, for $210 million, alleging the CBC acted "recklessly and maliciously" and that "these false statements... were published and republished, maliciously and without just cause or excuse, to a global audience, which has resulted in pecuniary loss to the plaintiffs." The CBC stood by its reports, stating that the DNA tests were done by independent and credible experts.[144] The CBC's Emma Bédard stated that Subway had not provided an alternative explanation for the DNA test results obtained by the CBC.[145]

In November 2019, Subway's lawsuit against the CBC was dismissed through anti-SLAPP legislation, as CBC's reporting was deemed to be a matter of public interest.[146][147] In January 2021 the Ontario Court of Appeal overturned the decision dismissing the lawsuit. The Supreme Court of Canada denied leave for appeal, so the matter has been returned to the Superior Court of Justice for trial.[148]

In 2019, the Fair Work Ombudsman found that 17 Australian-based Subway franchises had underpaid workers.[149] The lengthy investigation by the Ombudsman specifically found that franchises failed to pay the employees minimum wages, casual loadings, holiday and overtime rates, and did not issue proper pay slips or keep proper employment records.[149] The investigation resulted in over $81,000 being recovered in unpaid wages for over 160 employees.[149] Subway responded by introducing a rolling audit of franchisee employment records and commented that franchise agreements could be terminated if franchisees failed to meet Australian workplace laws and Subway's internal standards of operation.[149]

Following the 2022 Russian invasion of Ukraine, Subway was criticized for not divesting or scaling back its operations in Russia, unlike most of its competitors.[150][151][152] Subway issued a statement saying, its corporate office does not own any of the 446 Subway stores in Russia, and issued a statement saying, "In addition to working with our franchisees across Europe to provide meals to refugees, we will redirect any profits from operations in Russia to humanitarian efforts supporting Ukrainians who have been affected by the war. Our restaurants in Russia are all independently owned and operated by local franchisees and managed by an independent master franchisee."[153]