On this morning’s Today programme, Fred DeLuca, the company’s co-founder and president, said Subway’s franchise model was the key to its success (its robust approach to competition between franchisees is famous – it’s not uncommon to see three Subways on one high street). ‘When you’re part of a franchise system, banks are more likely to loan you money – a greater amount, at lower interest rates,’ he said. Good job: according to DeLuca, the typical brand-new Subway franchise costs £150,000 to build.
Of course, in an economy where the number of jobs available are still dwindling, any announcement like this is bound to put a smile on the faces of the Government. But there are those who argue that jobs like this don’t add much value to the economy: after all, on the whole, they’re low-skilled and low-paid. DeLuca was adamant, though, that Subway’s contribution is valuable: ‘All jobs are important,’ he said. ‘When you put people to work it puts pressure on the employment community and wages go up.’
This announcement comes just days after McDonald’s announced its own plans to create another 2,500 jobs in the UK: a commitment which was actively welcomed by the Government. Further proof, if it were needed, that no matter how much we tighten our belts, the Great British public isn’t willing to sacrifice the odd trip to a fast food joint.