Founded by John Meddaugh and Andy Cotton in 1975, Thundercloud Subs has grown to be an iconic Austin staple. Despite them now celebrating their 50th year of operation, the go-to sub shop for many Austinites has upheld its taste and atmosphere through pandemics and its many locations. Mike Haggerty, owner of Thunderclouds, has been with the company since 1981.

“I moved here in ‘77 and finished at UT,” said Mr. Haggerty. “[I] lived right by Barton Springs pool, and I rode my bike every day to campus, and I used to stop at the original Thundercloud on Lavaca, which was the very first store to open in ‘75. So, I knew Thundercloud; I used to eat there all the time. My buddy played basketball with John and Andy, who started Thundercloud, and they were getting ready to move their office.” Founders John and Andy, aware of Mike’s experience with construction management, asked for his guidance in the transition of moving their office and getting more space to eventually begin franchising. They ended up buying a building and moving their office right on Sixth Street. “My wife… knew restaurants. I didn’t know anything about the restaurant business,” commented Mr. Haggerty. “But I could understand business, and I’m good with people, and I’m good with numbers. So I knew if she ran the restaurant part, I knew I had the perfect location.” Working near Lake Austin Boulevard next to Austin High every day, Mr. Haggery realized there were very few restaurants. “I thought, well, a sandwich shop would be a good deal since they were franchising. Long story short, I became the first franchisee.” After years of franchising for Thunderclouds, founders John and Andy realized they didn’t want to do it anymore, so they passed the reins to Mike, who became the official franchisor in 1989.

Following this change, Thundercloud began to grow significantly, including locations outside of Austin. “We had two [stores] in Lubbock, three in College Station, five or six in Houston, three in San Antonio, and one in Reno, Nevada,” shared Mr. Haggerty. “It was a lot of work, and I kind of learned my lesson after doing it for a bunch of years that there’s nothing worse than working harder and not making any more money [with] a lot more hassle. So we rolled all those up and let them all go.” Thundercloud transitioned to owning and operating stores, allowing him to know the people he worked with and all the employees and logistics he was previously unconnected to when franchising. “We now own and operate 14 [stores].”

A unique aspect of Thunderclouds is its menu. After 50 years of operation, the original menu is still 100 percent intact. Surprisingly, when Thundercloud opened, they didn’t have any turkey on the menu. “People didn’t eat turkey sandwiches,” stated Mr. Haggerty. “Roast beef and ham were the number one and number two sandwiches; that’s what everybody ate.” Nowadays, roast beef and ham aren’t nearly as popular, with turkey taking the top spot. And for those who didn’t want a meat option, the avocado sandwich was a popular choice. “We’ve always had vegetarian fare. Fresh, fast, and healthy is kind of our moniker, and that’s what we really try to maintain. We maintain the same preparation standards we do today as we did fifty years ago.” A huge reason for Thundercloud’s success is likely its dedication to fresh ingredients daily. “We [slice ingredients] every day basically from scratch. They’re very simple recipes, but we probably put a lot more time and labor into the prep than most places. We’re actually taking it, slicing it, and mak[ing] the sandwich in front of you.” This commitment to freshness has been made far easier by localizing its locations to the Austin area. 

The last time Thunderclouds hired a manager who hadn’t previously worked through the company was in 2000. Of the 25 managers currently owning and operating locations, 16 have been with the company for more than 20 years, and 12 started with Thundercloud when in high school. “We know our managers, and our managers know us.” The loyalty Thundercloud’s managers bring to the company is reflected in their work. By allowing them to have control over their hiring and operations while sharing in the profits of the store, owners are incentivized “to do things the right way.”

However, not everything has stayed the same in Austin since 1975. “The way the sandwiches have evolved is always kind of interesting,” commented Mr. Haggerty. “People are eating way more food than they used to.” Thunderclouds originally saw around 54% of sandwich orders being smalls, with the trends now showing 54% of orders being larges. “All the expansion in our menu has been [towards] the heavier side. Avocado and bacon on top of the Big Paul or the California Club. You match anything with bacon and avocado, and people are going to buy it.

Thundercloud Subs isn’t the only classic Austin location turning half a century old this year. “It’s Antone’s 50th year, it’s County Line’s 50th year, it’s Fonda San Miguel’s 50th year. Pretty cool when you get into all the businesses that started in Austin in 1975,” stated Mr. Haggerty. “It was obviously kind of a watershed year for cool people to go to Austin and do cool things. We were really excited for 25 years. 40 years was a big deal. I think of 50 years, and I just think of old.” According to Mike, the reason for this growth is Austin’s people. “The river’s beautiful, the capital’s here, the university’s here, and the hill country is just majestic. But the secret sauce of Austin has always been the people.”

So how will Thunderclouds develop in the future? “I kind of like what we’re doing,” said Mr. Haggerty. “We do really well, way beyond our wildest dreams to begin with, and we’ll probably continue to grow.” Prior to the pandemic, Thundercloud was adding a new store every 12 or 18 months. “We made it through [Covid-19] and came out way stronger on the other side… It kind of refocused us on what we were doing.” Fortunately for Thundercloud, they adapted to delivery before entering lockdown. But the pandemic reminded them of what they wanted for the company, which boils down to upholding the same standards they always have.

Thunderclouds will continue to be a frequent spot for students at AHS. Its close proximity and exclusive coupons make it a great option during lunch. “Austin High, I think it’s the heart and soul of Austin,” added Mr. Haggerty. “Go Maroons!”