Subway’s late co-founder left a multi-billion dollar donation to a charity run by his sons when he passed away in 2021: half of his privately owned sandwich chain.
The subway started in 1965 when 17-year-old Fred DeLuca asked Dr. Peter Buck, a nuclear physicist who was a friend of the family, for advice on how to pay for college. Buck invested $1,000 to help DeLuca open a sandwich shop in Bridgeport, Conn.—starting a business that has now expanded to more than 100 countries.
Never listed, Subway is still in the hands of families, but most of the business is now held by a private charity.
The Peter and Carmen organization Lucia Buck — founded by Buck and his late wife in 1999 — announced Monday that the late subway co-founder has left his 50% stake in Subway. for charity.
“Doctor. Buck planned this generous inheritance more than a decade ago as the final part of his philanthropic plan to build PCLB into an organization designed to promote his best qualities. human nature,” the organization said.
The charity offers grants and other support including guidance and professional connections to give “motivated people the tools they need to help themselves”. Its interests include education, medicine, and journalism.
Subway and Peter and Carmen Foundation spokesperson Lucia Buck was unavailable when contacted by Luck.
Members of the Buck family sit on the charity’s board of directors. Forbes—quoting a copy of Buck’s Will—reports that Dr. Buck’s sons Christopher and William, both board members, and Ben Benoit, the company’s CFO, are administrator of his estate.
When Buck died, the publication estimated his net worth at $1.7 billion.
In the first day of this monththe The Wall Street Journal reports that the sandwich giant is exploring a purchase that could value the company at $10 billion, meaning Buck’s gift to his fund could be worth as much as $5 billion.
The deal, if carried out, could make the Subway heirs some of the wealthiest people in America. When news of the potential sale came out, a rep for the sandwich chain said Luck that the company would not comment on its ownership structure and business plans.
The Peter and Carmen Foundation Lucia Buck said in Monday’s announcement that the Buck and DeLuca family “remains close”. Based on Insidersmembers of both families are board members of Subway.
“This gift will allow the foundation to significantly expand its philanthropic efforts and impact more lives, especially our work to create educational opportunities for all students, work that Tien Dr. Buck cares deeply,” said Carrie Schindele, the charity’s chief executive officer, in the statement.
In recent years, Subway appears to be facing financial and operational difficulties, according to reports to close 10% of stores in 2020 And lay off hundreds of company workers.
In 2021, a “relevant group of Subway franchisees” Written to co-owner Elisabeth DeLuca to ask her to fix what they call “nightmare” franchise terms.
However, last year, the company said it hit record sales thanks to a transformation strategy that included a menu overhaul, store remodel, and app upgrade.
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