From left, Cassie, Matt and Lauren Hufnagel operate 37 Subway locations in upstate and western New York, making them the largest franchisees in the region.
If there was any doubt Matt and Cassie Hufnagel are in it for the long haul as Subway franchisees, it was put to rest when the couple shared plans to grow their 37-unit portfolio in New York.
Further proof came as they spoke about their children’s involvement in the business and the potential for them to carry on the family legacy.
“Subway has been life changing for me and my wife and our plan is to have this be a family business for years to come and possibly having our children keep it going. That is our hope, at least,” said Matt Hufnagel, whose 25-year-old daughter, Lauren, came on as assistant director of operations in the last year.
Since acquiring their first Subway in a Walmart in Painted Post, New York, in 2015, the Hufnagels purchased more every year to become Subway’s largest operator in upstate and western New York. In 2023, they acquired 13 stores to double their portfolio and last year added 10 more. In April they reopened a Subway in Wellsville, New York, that operated under previous owners before closing in March 2024.
The pair are equal partners, with Cassie handling operations while her husband focuses on finances and development. Hufnagel said his development approach is to identify existing Subways that either are closed or are owned by franchisees looking to sell.
Their stores operate above the systemwide average unit volume of $490,000, with their top-performing stores coming in close to $1 million.
They credit their success in the crowded sandwich market that includes Jersey Mike’s Subs and Jimmy John’s to being bold and not being afraid to take risks. They said annual sales topped $18.5 million in 2024, thanks in large part to a “rock star” executive team that includes operations directors and area supervisors who keep a close eye on costs and store-level service.
“Understanding your food, labor and rent costs is always going to be really important in running successful restaurants, but along with that you need to be very hands on, which we are,” said Hufnagel. “We’re in our stores all the time making sure they are clean and running efficiently and their managers are providing the best customer service and employee experience. It takes a lot of work to stay on top of it all, but we found out early on that it’s well worth it if you want to remain successful in this business.”
In turning around underperforming stores, Hufnagel said it starts with talking to employees and asking them the right questions to understand the issues and challenges they’re experiencing. He said quick and decisive action is needed to gain their trust and get them to take pride in their work.
“I want all our employees to know that they can call me or Cassie anytime with questions or problems. We want them to know we are there for them and will do everything we can to help them do their jobs better,” said Hufnagel as he noted he or his wife were in their Wellsville store every day for the first week of its reopening after spending the prior week re-training staff.
Over the past decade, the Hufnagels have persevered and remained committed to Subway, which Roark Capital bought last year. The franchisor continues to draw ire from the North American Association of Subway Franchisees for pushing what its members say are costly promotions that erode their bottom line. Store closures continue.
Subway started last year with 20,133 units in the United States and ended 2024 with 19,502, according to its 2025 franchise disclosure document. It reported 881 stores ceased operations, compared to 435 openings.
Hufnagel, meanwhile, said he felt former CEO John Chidsey steered the company in the right direction and pushed for needed store and equipment upgrades. Chidsey left the company at the end of last year; Carrie Walsh is interim CEO.
Hufnagel said the brand’s ongoing sandwich promotions are necessary to remain competitive.
“Having promotions that appeal to different segments of the market are important and will always have a place within the marketing mix, in our opinion,” he said. “We count on the brand to make sure in doing so that they are creating promotions that drive increased traffic but that also prioritize the franchisee’s ability to maintain necessary profit levels.”