Founder: Subway Wouldn’t Exist If Started Today Due to Regulations

Deluca: Payroll tax increases, Obamacare pose challenge to small business


President and founder of Subway Fred Deluca described some of the challenges payroll tax increases and Obamacare have presented small business franchisee owners Wednesday on CNBC (view video here).

Deluca said the number one issue facing Subway franchisee owners is how Obamacare will impact their expenses, noting any increase in costs will be passed along to the consumer through higher prices.

Additionally, when asked about the modern business climate for young entrepreneurs, the Subway founder stated “Subway would not exist” if he started it today due to onerous government regulations:

SIMON HOBBS: It’s 13 years since you wrote the book “Start Small, Finish Big” which was about grass roots entrepreneurship. Do you think the environment for those chasing the American dream by setting up their own business has gotten worse or better in those 13 years?

FRED DELUCA: It’s continuously gotten worse, because there’s more and more regulations. It’s tougher for people to get into business. Especially a small business. I tell you, if I started Subway today, Subway would not exist, because I had an easy time of it in the ’60s when I started. I just see a continuous increase in regulation.