50-Year-Old Port of Subs Bought by Private Equity Firm
Port of Subs, a 50-year-old West Coast sandwich chain, was acquired by private equity firm Area 15 Ventures.Ā
The Reno, Nevada-based chain has more than 130 locations in seven states. The company was founded in 1972 by two brothers from New Jersey who originally called it Sub Shop. Three years later, John Larsen and his family purchased the company and held a contest to select another name. After more than 10,000-plus submissions, Port of Subs was the winner. The brand developed 10 corporate stores in the next 10 years and began franchisign in 1985.Ā
Ā As part of the transaction, Larsen will step down as CEO.Ā
āThis is definitely an exciting time forĀ Port of Subs, and I couldnāt feel more secure putting the brand in the hands ofĀ anĀ esteemed group like Area 15 Ventures,ā Ā Larsen said in a statement. āOver the years, ourĀ franchisees have become truly celebratedĀ in each community we serve because of our high-quality and customizable menu,Ā and with that, weāve been able to capture an amazing following.”
Area 15 Ventures will lead a brand with a renewed franchising strategy. Port of Subs plans to expand using a regional developer model. So far, more than 40 markets have been identified, which will be filled with individual and multi-unit franchisees. The legacy chain expects to award up to 50 regions for development within the next year.Ā
Leading the investment is Dave Liniger, cofounder and chairman of global franchise RE/MAX. The entrepreneur uses Area 15 Ventures to grow various franchise concepts, most notablyĀ Daddy’s Chicken Shack, a fast casual that currently has 12 regional developers and 150 restaurants in development.Ā
āPortĀ of Subs is a welcomed addition to the Area 15 Ventures portfolio, and there isĀ no doubt that this is a concept equipped forĀ broadscale growth,ā Liniger said in a statement.Ā āWhen seeking out new concepts to add to our roster, we do our due diligence inĀ confirmingĀ the brand has the potential to grow on a global scale, thrive inĀ todayās competitive [quick-service] market and above all, has the highestĀ quality productĀ that aligns directly with what consumers are looking for. Thatās exactly whatĀ weāve found with Port of Subs. TheĀ brandās legacy, values and rock-solidĀ business model provide a wealth of potential, and weāre thrilled to have foundĀ anĀ established brand with so much growth on the horizon.ā