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The CEO of a Company That Cut Ties With Subway Reveals How It Went From Running Out of Cash to $54 Million a Year

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The CEO of a Company That Cut Ties With Subway Reveals How It Went From Running Out of Cash to $54 Million a Year

YuChiang Cheng saw a different path forward — and it’s paying off big time.

In 2022, when YuChiang Cheng invested in Hero Bread on behalf of 444 Capital and stepped in as the company’s interim chief marketing officer, the low-carb, zero-sugar brand was at a critical crossroads. 

Cole Glass had founded the company in 2019 to address his severe food allergies related to pollen. By October 2021, a partnership with Subway seemed like an exciting path forward. The idea was to get the macro-friendly bread products into as many hands as possible so people could taste it for themselves. 

However, around the time Cheng joined the company, it was clear the unit economics didn’t make sense. The Subway deal wasn’t profitable; Hero Bread was running out of money. 

“ We were just too small at the time and couldn’t service it, didn’t have the resources and all the infrastructure put in place to effectively deliver that,” Cheng says. “So we backed out of it.”

Cheng pivoted to a direct-to-consumer (DTC) strategy, allowing the brand to receive feedback from consumers more quickly and drive word-of-mouth sales, he says. 

Cheng assumed the role of CEO in November 2023 and has continued to grow the company.

In a funding round announced in June 2024, Hero Bread raised $21 million in under 90 days. The round, co-led by Cleveland Avenue, DNS Capital and Composite Ventures, brought the company’s total funding to date to more than $68.5 million. 


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