The first Tubby’s Sub Shop was founded in 1968 by Richard Paganes at age 21, in the Detroit suburb of St. Clair Shores at 13 Mile and Harper. His sandwiches were a hit! The now famous Tubby’s Subs with their unique flavor, high quality products, and generous portions quickly became a Detroit area favorite. Richard’s pioneering vision and unwavering commitment to quality products and customer service are the cornerstones of Tubby’s success.

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In 1978, the company awarded its first franchise store at 14 Mile and Ryan in Sterling Heights. A number of dine-in locations opened soon after, followed by the first drive-through restaurant in Westland in the early 1980s. Tubby's growth through the years has been at a deliberate pace. Quality of franchisees and store locations rather than the quantity of stores in operation are the guiding rules. This philosophy originates from Tubby’s Sub Shops being a family owned and operated business. The family tradition continues with Robert Paganes, Richard’s brother, who serves as the company's CEO.