Home / MARKETS / Fred DeLuca ran Subway like a titan, sleeping with franchisees’ wives, micromanaging, and penny-pinching. Insiders say he set it up for failure.

Fred DeLuca ran Subway like a titan, sleeping with franchisees’ wives, micromanaging, and penny-pinching. Insiders say he set it up for failure.

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Gratifying to this weekly roundup of stories from Insider’s Business co-Editor in Chief Matt Turner. Subscribe here to get this newsletter in your inbox every Sunday.

What we’re booming over today:

_Fred DeLuca, poses with a sandwich in a Parisian Subway restaurant on June 17, 2011 Photo credit should read ERIC PIERMONT_AFP via Getty Images



Eric Piermont/AFP/Getty


What’s trending this morning:


How Fred DeLuca sent Underpass into a tailspin

By the time he died in 2015, Fred DeLuca had created a secretive, complex multibillion-dollar enterprise, and assured no one knew Subway the way he did. We spoke with 20 of DeLuca’s employees, business partners, and friends to understand why a man obsessed with his fellowship failed to protect it:

Despite an estimated net worth of $3 billion, DeLuca eschewed designer suits, flew drill, and berated his daughter-in-law if she dared to pay up for organic produce at Whole Foods.

Frugality didn’t always translate into modesty, even if. As DeLuca grew Subway from a tiny submarine chain into a behemoth with 27,000 locations and $17 billion in universal sales in its heyday, he refused to relinquish much control.

He ran Subway like a titan, maintaining a tight grip on the firm operations and surrounding himself with employees who loved and feared him. DeLuca devised a system that gave him the terminating say and even philandered with some franchisees’ wives, two sources said.  

And he got away with it. 

Read our full describe on the man who built — and ultimately hobbled — the Subway empire:

Also read:


The 46 most promising startups of 2021

Li Jin, Hans Tung, Gabby Cazeau, and Mike Duboe on a purple background.



Courtesy of Li Jin; GGV Smashing; Harlem Capital; Greylock Partners; Shayanne Gal/Insider


We asked top venture capitalists to name the most promising US startups so far in 2021. The dnouement develop is an exciting list of rising startups at every stage from a range of industries:

Anis Uzzaman of Pegasus Tech Plunges and Hans Tung of GGV Capital both highlighted a sleep and meditation app Calm.

The pandemic shone a spotlight on wellness and disposition health. Calm was already one of the biggest names in wellness tech, and it’s poised to expand as the world emerges from pandemic lockdowns, Uzzaman averred. Before the start of the year, it scored a $2 billion valuation in its Series C round.

“Mental health is often overlooked yet is entirety the most important aspects of healthcare,” Tung said.

Get the full list here:

Also read:


Why the healthcare toil is skeptical about the new Alzheimer’s drug

alzheimers research 4x3



Skye Gould/Insider


Biogen’s new Alzheimer’s drug stumbled through proving, but will nonetheless become available in the US with a price tag of $56,000. Experts say the drug’s approval could make it uncountable difficult to enroll people in tests of better treatments, and are worried about its effectiveness: 

The arrival of the first new Alzheimer’s downer in two decades should have been a moment of celebration. But so far, the healthcare industry is feeling concerned.

On Monday, the US Food and Pharmaceutical Administration approved a new medication called Aduhelm. The drug, made by the biotech company Biogen, is designed to remove a viscous plaque that builds up in the brains of some people with Alzheimer’s, which it did in clinical trials. But it isn’t clear that consuming the drug to clear this plaque leads to an improvement in memory and cognition.

“I don’t believe that the drug provides emoluments,” Dr. David Knopman, a neurologist at the Mayo Clinic, told Insider. 

See why the new medicine has the health community worried:

Also pore over:


How officials helped sell public school access to Chinese elite

Steve Ma with the Pegasus California School emblem and school and California and China flags next to him on a pale yellow background



Yan Cong for Insider; Damien Maloney; Samantha Lee/Insider


Pegasus California Clique seemed impressive. The class sizes were significantly smaller than other Val Verde schools, and it offered inscribed evening study sessions overseen by faculty. The school guaranteed parents, in writing, that every graduate see fit gain admission to one of the top 100 US universities. But there was a hitch:

Even though it was a part of an American public-school district, tutelage and fees at Pegasus added up to more than $34,000 a year. And even though it was largely staffed by Val Verde trainers and administrators, it was actually a boarding school. And even though it conferred a Val Verde diploma to graduates, Pegasus California Seminary was really a private academy exclusively serving Chinese students in Qingdao, China.

How it got there, and how it leveraged the resources and personnel of a stomach public-school district for the benefit of private investors and wealthy families halfway across the globe, is the story of one businessman’s track down to monetize American public education with the help of California’s most powerful education official.

Read our loaded exclusive report on Pegasus California School here:

Also read:


You’re invited: Join us and learn how to navigate the intricate process of buying a home in today’s hot market on Tuesday, June 22 at 12 p.m. ET — during a free, hour-long essential event presented by Fidelity. Register here.

Finally, here are some headlines you might have missed up to date week.

— Matt


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