Why Subway’s billionaire founder believes if he had to start the successful sandwich franchise today, he wouldn’t be able to do it. He Sees Tough Times Ahead For Small Business.
Fred DeLuca, the billionaire entrepreneur who founded Subway, is worried about the state of the economy and the future of small business. In addition to being the founder of what is now the largest restaurant chain in the world, DeLuca has direct access to tens of thousands of store managers and franchisees that provide valuable insight into day-to-day small business management and consumer trends.
In a recent interview on CNBC, DeLuca stated that sales are off about 2 percent at the chain and that other industry players are experiencing a similar reduction primarily due to the increase in payroll tax deductions from employee paychecks. He believes that isn’t a temporary blip but instead is a long-term trend that business will have to accept. DeLuca further indicates that his franchisees are extremely concerned about the costs of implementing Obamacare and that the current regulatory environment for small businesses is so stifling that if he had to start Subway today, instead of back in 1965, he wouldn’t be able to do it.
About small business finance expert Mike Periu
Mike Periu has experience in small business finance. He founded Proximo, LLC a company that offers consumer and small business training services focused on technology and money.
Mike Periu teaches individual empowerment through entrepreneurship and financial literacy. He has appeared 500+ times on television and radio. Visit the Reach and Media pages of his website to learn more about where he has appeared.
You can read more of Mike’s articles on his blog or at American Express OpenForum, Yahoo! Finanzas and the Huffington Post.
Mike has a degree in International Business and Finance which he received at Georgetown University in Washington, DC. He received a Fellowship from the Kauffman Foundation for the Labs for Enterprise Creation program in Kansas City.
