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

Michael Bay might direct Benghazi movie

Bay, who has spent the last several years gaining popularity for his "Transformers" films, is reportedly in talks to direct the Benghazi film "13 Hours," according to the Hollywood Reporter.

Holder wants Denzel to play him in movie

Holder spoke to The Hill about Hollywood and politics while at an event at the Washington Ideas Forum Wednesday that was hosted by The Aspen Institute and The Atlantic.

'Rival Survival' premiering Wednesday

Senators Jeff Flake (R-Ariz.) and Martin Heinrich (D-N.M.) are getting ready to show America their bipartisan fire-starting skills on "Rival Survival," a reality show starring tho lawmakers that premiers Wednesday night on the Discovery Channel.

Lovitz has a field day with Hillary

Before Hillary Clinton's jobs comment is swept aside as a minor whoopsie, a few words from Jon Lovitz.

John Oliver has some ideas for the FDA

Some people want more nutrition information on food labels--but who really understands those labels anyway?

White House

Russian hackers broke into the White House network

Hackers with suspected ties to the Russian government recently broke into the White House’s unclassified computer network, the Washington Post reported Tuesday night.

Obama is withholding over 15,000 Fast and Furious documents

President Obama claimed executive privilege to withhold over 15,000 documents relating to Operation Fast and Furious, including nearly 20 emails sent between Attorney General Eric Holder and his wife.

White House fence jumper charged with assault
WASHINGTON (AP) — The 23-year-old Maryland man who climbed over the White House fence Wednesday night has been charged with felonies for assaulting two police dogs and making threats, the Secret Service said Thursday. Dominic Adesanya of Bel Air, Maryland, is in custody of the U.S. Marshals Service for previous outstanding warrants, Secret Service spokesman Brian Leary said. […]
President Obama, unpaid bills and the curious editing of the White House transcript
President Obama, some unpaid bills and a curiously “inaudible” section of the White House recording of a speech — that’s how all good stories start, right? While at a Democratic National Committee fundraiser in Chicago, Obama cracked a joke about the “unpaid bills” at his home. The joke was reported by the White House Press […]
Secrecy shrouds how the Obamas cook their chicken wings

Now it seems the Obamas are tight-lipped even about their eating habits.

Congress

Justin Amash envisions a libertarian Congress

Rep. Justin Amash, the libertarian congressman from Michigan, knows that Congress is far from libertarian. But someday, he thinks that might change.

Rand Paul: The GOP's image ‘sucks’

Rand Paul didn’t mince words about the GOP.

Small college's students thrown into 2014 election

Young people tend not to engage much in the humdrum local politics that go into midterm elections. But what if it’s happening literally in their own backyard?

GOP senator: 'Sorry the government's so f***ed'

Sen. Lindsey Graham (R-S.C.) made some self-deprecating jokes and colorful remarks about the state of the government during a recent private gathering, per a recording provided to CNN by South Carolina Democrats.

Top lawmaker's Ebola claim

A leading House Republican says he is aware of information that points to the United States eventually receiving non-U.S. Ebola patients for treatment.