Subway founder says regulations would prevent sandwich chain from being started today

It’s hard to imagine a world without the $5 Footlong. But Subway founder Fred Deluca says the sandwich chain would not exist if it started today.

“I’ll tell ya, if I had started Subway today, Subway would not exist,” ” Deluca said on Wednesday. “Because I had an easy time of it in the ’60s when I started, and I just see a continuing increase of regulations.”

Deluca spoke on CNBC’s “Squawk on the Street” about the current state of the economy. He said the economic environment is unfriendly toward businesses and has undergone drastic changes since he founded Subway in 1965.

Deluca talked about some specific factors influencing the economy, including Obama’s proposed minimum wage increase to $9. The Subway founder said he favors a gradual increase, but not an abrupt jump.

“[The proposed increase] would cause franchises to increase prices,” he explained. “There’s no question about it. Wages directly translate to prices.”

Deluca also addressed the great sense of uncertainty businesses face when confronted with Obamacare.

“[Obamacare] is the biggest concern of our franchises,” he stated. “They don’t have enough information. They don’t know what they’re looking forward to. It’s causing a lot of concern. But that too will also pass through to the consumer.”

So once Obamacare kicks in, and if the President’s minimum wage proposal goes into effect, $5 Footlongs could be a thing of the past. And $7 Footlongs just doesn’t have the same ring to it.

Comments

Comments

  1. T from LA says:

    this author must be from boston. “Its Had to imagine a world…”

  2. Roger Mitchell says:

    well I think unexperienced people best get used to the idea this will not pass and f it does you may start at 9 or 10.00 per hr but you best be ready to work long and hard hrs to get it , I would not hire anyone with little experience at 9.50 per set home and starve s I’d not Pay a penny more and I paid the 9.50 begrudgingly until the kids learn the basics this is going to be another nail in the youths job bracket /

  3. Jay says:

    I don’t believe DeLuca for a minute. Every day other new businesses are proving him wrong. Besides, his product sucks and I’ve got to believe his success is due to great marketing rather than the quality of the sandwiches because just about any independent sub shop beats Subway any day. I only eat there when I’m in a rush and can’t find anything else nearby. But after reading DeLuca’s comments I swear I won’t again, because he spoiled my appetite.

Polititainment

Obama: LeBron 'did the right thing'

President Obama supports LeBron James' decision to wear an "I can't breathe" t-shirt during warmup before the NBA game between the Cleveland Cavaliers and Brooklyn Nets last week.

Al Sharpton, Hollywood's Sony Liaison

In a private meeting with Rev. Al Sharpton at the Greenwich Hotel in New York City Thursday, Sony Pictures chair Amy Pascal told Sharpton that he could have a voice in how the movie studio makes its films.

Clooney: Release 'The Interview' online

George Clooney may have the most awesomely toothy response to the Sony Pictures cyberattack that forced the movie studio to pull the film "The Interview" from its December 25 release.

Jon Stewart might ruin your childhood

Jon Stewart brought his nightmare-inducing recurring character “Gitmo” on the show to talk about the normalization of U.S. relations with Cuba.

Colbert's embargo on the Vatican

Colbert had to chide his audience Wednesday night for getting excited about making “Cuba more libre.”

White House

Obama: we can’t have censorship subject to ‘some dictator someplace’

WASHINGTON (AP) — President Barack Obama declared Friday that Sony "made a mistake" in shelving a satirical film about a plot to assassinate North Korea's leader, and he pledged the U.S. would respond "in a place and manner and time that we choose" to the hacking attack on Sony that led to the withdrawal. The FBI blamed the hack on the communist government.

U.S. confirms North Korea was behind Sony attack and promises ‘proportional’ response

Officials no longer merely suspect North Korea to be behind the cyberattack on Sony Picture—they’ve confirmed it.

District court declares Obama’s executive action on immigration unconstitutional
A federal court in Pennsylvania declared parts of President Obama’s executive actions on immigration unconstitutional Tuesday. Judge Arthur J. Schwab, sitting in the western district of Pennsylvania, said presidents do have the power to use discretion in deciding how to enforce laws, but found that Obama’s recent executive action went much further than that.  He said Obama was writing […]
Obama administration extends Pell grants to juvenile offenders
The Obama administration has set out new guidelines that allow for students sentenced to juvenile correctional facilities to be eligible for federal Pell grants. The U.S. Department of Education and Department of Justice sent out a joint release Monday that clarified an earlier law. Congress in 1994 prohibited inmates at federal and state prisons from receiving Pell Grants […]
White House denies report that it wants to delay release of CIA torture report

The White House is insisting it wants the Senate Intelligence Committee to release its report on CIA torture practices, despite a report that Secretary of State John Kerry is trying to scuttle it.

Congress

Rubio says Rand Paul is clueless on Cuba

Sen. Marco Rubio made his criticism of a fellow Republican plain Thursday night.

Gowdy's office responds to Speaker chatter

Rep. Trey Gowdy has become a sensation on the Right, with his no-nonsense style and committee hearing takedowns of Obama officials garnering him praise and attention.

Rand Paul: 'Opening up Cuba is a good idea'

Sen. Rand Paul broke with the Republican Party's prevailing argument against President Obama's Cuba policy Thursday, saying the move toward opening trade with the long-embargoed nation "probably" is a good idea.

Retiring DemHenry Waxman's farewell ode to govt

You'd think that, 40 years in, a congressman might grow cynical about the prospects of government meddling. Not retiring Rep. Henry Waxman (D-Calif.)!

Senate Confirms Pro-Gun Control Surgeon General
NATIONAL JOURNAL — The Senate narrowly confirmed a new surgeon general whose nomination was delayed for months in a fight over his comments alleging that guns are a public health issue. The confirmation represents a victory for gun-control advocates, even as recent polling has shown Americans moving in the other direction toward gun-rights protections. The […]