Port Of Subs

Welcome to Port of Subs, the shipyard of subs. The chain began without a plan, with the owner running his business on vibes. This is the story of how Port of Subs almost destroyed itself. In America, restaurants have a way of beginning as family-owned businesses, and Port of Subs is no different. In 1972, two brothers from New Jersey founded the restaurant in Sparks, Nevada, and named it the Sub Shop. The brothers got financial advice from John Larson, a public accountant who began to have ideas. From his interactions with the brothers, Larson believed he understood the business and was certain it had great potential. So, in 1975, after seeing an opportunity, he bought the company from the brothers and had an idea. Larson understood that his business must connect to its community if he was going to have any success. So he created a contest that involved members of the community choosing a name for his restaurant. Besides connecting with the community, Larson wanted to stand out from the copycats. The competition had 10,000 entries, from which Larson picked the name Port of Subs, and away the business went. Well, at least it did for some time. Larson didn't know what he was doing, and the interesting part? He didn't know that he didn't know. And if you like to learn about the history of your favorite eateries, be sure to Larson opened 10 locations for his company within 10 years of his ownership. However, he wasn't franchising, but he thought about it with people commenting to him that he should expand to other cities. People told Larson that his menu had great taste and quality, which would help sustain an expansion. So, in 1985, Larson began to franchise. The owner thought he'd succeed with franchising, but he got losses. The company's expansion coincided with a difficult period in the United States economy. During the time, the country was just recovering from the savings and loan crisis. The crisis left closed shopping centers in its wake, as their owners couldn't meet their loan obligations. So, how does this concern the sandwich shop? Back in the 80s, the go-to location for sub shops was shopping centers. With those centers closing, several Port of Subs locations closed along with them. It was a horror, and liquidations stared at the sandwich joint in the eyes. Larson wasn't sure if his business would survive, but he was convinced that he was in big trouble. But things got even worse. Larson knew he needed help, as in 1989, the company lost $250,000. So, he contacted the advisors at the Nevada Small Business Development Center. From the consultation, Larson realized he knew nothing about his business. He didn't even have a clear understanding of who his company's customer base was. He also discovered that despite having 12 stores and hiring 100 employees, he didn't have a plan. He had been winging it for a while now, but it appears the wings have been broken. To help him clear the mess, advisors at the Nevada SBDC helped John create a team that included UNR students. The team helped Larson understand his customer base. They conducted a market survey of customers in the stores, and studied the best performing stores to find out what made them attractive to customers. Speaking of stores, the team taught him how to know if a site would be good for his business or not. They also showed him his company's financial leaks. That's not all. The team helped Larson formulate a marketing and advertising plan that would help him attract customers. They also taught Larson the importance of expanding when the time was right. Then, they forced him to come up with a business plan. John Larson sold some franchise units, and following the Nevada SBDC recommendation, he opened several company-owned stores in Las Vegas. Larson was now an improved owner, as he could properly budget for the business, among other things. After the $250,000 loss, the company managed to turn it around. It made a profit in 1991, and in 1992, it res The franchise owners under the chain used SBA financing, and soon, the company recorded even more success. In 1993, Port of Subs won the Nevada Small Business of the Year award. The way it turned its problems around within a relatively short time, and even began to expand, was nothing short of inspiring. Although Larson had help from the Small Business Administration and Nevada SBDC, his determination and willingness to learn and adapt to make things work was key. Without that ability to adapt, the chain wouldn't have maintained its success when customer behavior changed. Customers who preferred to sit in the restaurant now want to grab their food and go quickly. The company continued to operate and achieve profitability. It was this steadiness that the Colorado Private Equity firm Area 15 Ventures LLC saw before buying the company in 2023. With Dave Linniger, co-founder and chairman of the REMAX Real Estate franchise leading the investment, the chain targets immense growth on an international level. The brand's legacy, values, and rock solid business model provide a wealth of potential, and we're thrilled to have found and established brand with so much growth on the horizon, Dave Linniger said. Before the purchase, the chain had 130 units across seven western states. Now, the new owner is trying to improve those n The new owner has created plans to add 50 units to the company in 12 months. However, a renewed approach to expansion isn'the only thing that got shaken up. The new owner has appointed Adam Contos to head Port of Subs as its new CEO. Adam has been with Area 15 Ventures for a year, within which he became REMAX Holding's CEO. Alongside Adam, Healy Mendicino, Port of Subs' former executive vice president, became its new president. Port of Subs began with brothers before John Larson, who didn't know what he was doing, bought it. Larson almost ruined the business, but he managed to turn it around and began to yield in critical profits. It was this profitability that Area 15 Ventures saw before buying the company. Do you think Area 15 Ventures will take the business to greater heights? Or will the business cr Let us know in the comments and don't forget to leave a