Tags: subway | founder | regulations

Subway Founder: Today's Regs Would Have Stopped Me

Thursday, 28 Feb 2013 07:33 AM

By Todd Beamon

Fred DeLuca, the founder of Subway Restaurants, said on Wednesday that government regulations would have easily prevented his company from starting up in today’s marketplace.

“If I started Subway today, Subway would not exist,” DeLuca told CNBC.

The market for U.S. entrepreneurs has “continuously gotten worse because there are more and more regulations,” he said. “It's tough for people to get into business, especially a small business.”

DeLuca cited Obamacare, payroll taxes and minimum wages as examples of a restrictive American business climate.

Obamacare, or the Affordable Care Act, is “the biggest concern of our franchisees. They don't know what to expect,” DeLuca said. “It's causing a lot of concern, but that too will be passed on to the consumer.”

Editor's Note:
5 Signs Stock Market Will Collapse in 2013

He said payroll taxes are “affecting sales. It’s causing sales declines.” DeLuca estimated that sales were down 2 percentage points at Subway restaurants as a result.

“There are a lot of pressures on consumers,” DeLuca told CNBC, adding, “I think this is on the permanent side, but I think business will adjust to it.”

And, while base wages should increase over time, “doing a sharp raise all at once is a bad idea,” DeLuca said. “Minimum-wage workers deserve to make more, and a little bit of an increase makes sense to me.”

But he cautioned that “wages directly affect prices” and that a higher minimum wage “will cause franchisees to raise prices, there is no question about it.”

Subway employs minimum-wage workers, DeLuca told CNBC, though some may make more money in certain markets where demand is higher.


© 2015 Newsmax. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Nevada's AG Joins Suit Against Obama's Deportation Relief for Illegals

Wednesday, 28 Jan 2015 23:21 PM

Nevada's newly minted Republican attorney general has joined a multistate lawsuit seeking to block President Barack Obam . . .

Research Institute: NKorea May Be Trying to Restart Nuke Program

Wednesday, 28 Jan 2015 23:16 PM

North Korea may be attempting to restart its main nuclear bomb fuel reactor after a five-month shutdown, a U.S. research . . .

Karl Rove: GOP Should Fight Hillary on Foreign Policy, Jobs, Govt Debt

Wednesday, 28 Jan 2015 22:04 PM

With former Secretary of State Hillary Clinton the likely presidential nominee of Democrats in 2016, GOP strategist Karl . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved