Subway : 9 spicy lessons on how a clueless poor student built a sandwich empire

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Hey rebel solopreneurs 🦸‍♂️🦸‍♀️

You assume you need to know everything before launching anything.

Wrong!

This lie keeps brilliant solopreneurs stuck in endless research mode, convinced they need perfect knowledge before taking action.

But here's the crazy part - what if overthinking is the real enemy?

The courage to start clueless beats endless preparation, and Fred DeLuca proved that $1,000 and zero business knowledge can build a billion-dollar empire called Subway.

You're about to discover how a completely inexperienced 17-year-old figured it out as he went and built the world's largest sandwich chain.

Let's investigate his secret formula!

🍹 The humble beginnings...

Fred DeLuca grew up in a Brooklyn housing project with immigrant parents who barely finished high school.

At 10 years old, he collected empty bottles for 2 cents each just to make money.

His family moved around constantly - Brooklyn to New York to Bridgeport, Connecticut.

Fred dreamed of becoming a doctor but his family couldn't afford medical school tuition.

He settled for psychology at Bridgeport University while working minimum wage at a hardware store.

$1.25 per hour wasn't enough to pay for college and he felt stuck with no options.

His parents planned a social visit to their wealthy family friend, Pete Buck, a nuclear physicist.

Fred figured Pete might have ideas about paying for college since he was rich and successful.

When Fred asked for advice, Pete casually suggested something totally unexpected.

"You should open a submarine sandwich shop," Pete said, like it was the most obvious thing in the world.

Can you imagine?

Fred thought Pete was joking at first, but the physicist was dead serious about this restaurant idea.

Pete offered to become his partner and put up the initial investment money.

Most parents would worry about their kid's studies, but Fred's family was surprisingly supportive.

They made a plan to open 32 stores in 10 years, copying another successful sandwich chain.

Pete handed Fred a $1,000 check and told him to get started immediately.

This was July 1965, and Fred's college classes started in September.

The 17-year-old had no idea he was about to learn the hardest business lesson of his life...

1. 🎯 Start before you feel ready

Fred had never run a business, created a business plan, or even signed a lease.

But here's the thing - he didn't let that stop him.

He borrowed his dad's car the very next Monday and drove around looking for a store to rent.

When he found a spot near the hardware store, he called the landlord immediately.

The rent negotiation lasted about 30 seconds - $165 per month, boom, done deal.

Fred didn't even know what a lease was and refused to pay $25 for one to save money.

He got the keys and started building a counter and partition without any real plan.

Wild, right?

But Fred was about to discover that enthusiasm alone wouldn't save him from a crushing reality...

2. 😰 Accept that you'll face imposter syndrome

Fred had to install a special sink that cost $550 - money he didn't have.

He felt completely out of his depth and wondered if he was crazy to think this could work.

Thankfully, Pete came to the rescue and financed the sink so they could open.

Fred's formula was simple: sell sandwiches for cash today, pay bills tomorrow.

He admitted he didn't know enough about business to realize how badly they were doing.

Opening day brought a massive surprise that would teach Fred about customer expectations...

3. 🎬 Learn from your competition instead of reinventing

Instead of creating original recipes, Fred and Pete drove to every sandwich shop in town.

They studied how other owners operated - seasoning amounts, ingredients, sauces, everything.

They even drove to Maine to study Amato's operation that Pete loved as a child.

They mixed the best ideas from two successful sandwich shops they admired.

Their mission was simple: learn as much as possible about the business as fast as possible.

But their grand opening would reveal a harsh truth about first-time customers...

4. 🎢 Expect the post-launch reality crash

Opening day was incredible - 300 sandwiches sold and a line out the door.

Fred thought they'd hit the jackpot and figured customers would keep coming back.

But wait, here's the harsh reality - those were mostly one-time curious visitors who didn't return.

Sound familiar?

Every Monday, Pete would chart their weekly sandwich sales on a graph.

The sales line went straight downhill - fewer sandwiches sold each week than the week before.

By winter 1966, they discovered something that almost killed the business entirely...

5. 💸 Face the money crisis without panicking

One fateful Monday, they counted all the cash in the register.

Even if they gave every penny to their employee, it wasn't enough to cover his wages.

They had no money left for rent, food, or any other expenses.

Pete wrote down "L T D A T A T K" - "Lock The Door And Throw Away The Key."

They almost quit right there in Fred's mom's kitchen, but refused to give up their 32-store goal.

Their next decision seemed completely insane but would save the entire business...

6. 🚀 Try radical solutions when conventional ones fail

Instead of closing their failing first store, they decided to open a second one.

Most people thought this was completely insane - why open another store when the first was dying?

But here's their logic: a new location would cost less than moving the existing store.

Smart, right?

Fred found a much more visible location with higher street traffic for the second store.

This taught him the importance of putting himself in customers' shoes - they wanted visible, clean, safe storefronts.

The second store success revealed a pattern that would guide their entire strategy...

7. 📊 Track seasonal patterns in your business

After opening the third store, sales dropped in all locations during winter.

Fred realized people didn't want to eat out during harsh winter months.

Sales picked up again in summer, creating a predictable seasonal pattern.

They would lose money every winter and make it back in summer.

This pattern continued for years until they built enough brand awareness to overcome seasonality.

A broken-down car would reveal a theft problem that was secretly killing their profits...

8. 🔍 Investigate problems through customer eyes

When Fred's car broke down, a young boy gave him a ride.

The boy pointed to Fred's store and praised their great sandwiches and free soda.

Fred was confused since they charged for soda, so he asked how the boy got it free.

The boy explained that when employees turned around to make sandwiches, he'd sneak a soda to his car.

Fred immediately fixed this theft problem after seeing his business through a customer's perspective.

Years of barely surviving would teach Fred the most important lesson about business relationships...

9. 🤝 Build personal relationships with everyone who matters

Fred and his mother drove around every Friday to visit their four main suppliers.

They weren't picking up supplies - they were making social visits with checks.

The vendors knew Fred and his mother personally and trusted them despite growing debt.

These relationships allowed suppliers to extend credit when money was tight.

Fred says if they hadn't built these personal connections, the business would have failed.

After 8 years of struggle, they realized they'd never hit their goal without a dramatic change...

💰 The epic win

By 1978, Subway had 100 outlets across multiple states.

Four years later in 1982, they reached 200 profitable stores.

Fred set a new goal of 5,000 stores by 1994 - everyone thought he was crazy.

Today, Subway has over 40,000 locations in 112 countries worldwide.

Fred DeLuca became a billionaire, proving that $1,000 can build an empire.

🥂 Your turn to shine bright!

That's it, my fellow rebels!

That's it, my fellow rebels!

You assume you need to know everything before launching anything, but Fred's journey shows the opposite is true.

He went from a clueless teenager who didn't even know what a lease was to building the world's largest sandwich franchise.

"I didn't know enough about business to realize how bad we were doing," says Fred.

"Knowing less and actually doing something is far better than knowing everything and never doing anything at all," adds Fred.

Start with whatever knowledge you have right now and figure out the rest as you go.

Something tells me you're gonna build something amazing.

Keep zoooming 🚀🍧

Yours 'helping you build a biz with almost zero-risk' vijay peduru 🦸‍♂️