Subway Announces Plans for Major International Expansion
Subway recently announced it has reached commitments from franchisees to add 10,000 international restaurants. The deals could grow the chain’s international unit count by 63 percent if all operators complete the projected restaurant openings.
That represents a major change in fortune for the company, which had seen a decline in international units heading into the pandemic and a continued decrease coming out of it. Subway says it has signed more than 20 master franchise agreements over the past three years, accounting for more than 10,000 commitments.
Forty percent of the chain’s new openings this year will come from those 20 master franchise agreements. The company says it is on track to more than double the number of new restaurant openings this year, compared with 2019.
Subway credits the growth to work with multi-unit operators. It signed new or expanded development agreements with companies such as Love’s Travel Stops and strengthened long-term retail relationships with businesses like the retailer Walmart and onsite foodservice giant Aramark. These types of locations represent about 25 percent of the brand’s global footprint. Subway is also boosting its presence in airports in Mexico and Spain and on college and hospital campuses.
Seven of those agreements have been signed this year, including deals that will put the brand in Paraguay and Mongolia for the first time. Subway also has deals to expand its presence in France, the Czech Republic, Luxembourg, Belgium, Switzerland, Liechtenstein, Brazil, El Salvador, and Guatemala.
“Subway’s global growth strategy of partnering with well-resourced, experienced multi-unit operators is proving to be successful,” said Mike Kehoe, Subway’s global chief development officer. “By working with the right partners, we are making significant strides in modernizing our brand image with both new and remodeled restaurants, improving our overall guest experience, and growing digital sales.”
In 2023, Subway experienced positive global net growth for the first time since 2016, mostly due to increased international expansion. One of the primary objectives of the expansion was ensuring restaurants are in the right location, image, and format. Subway’s Fresh Forward design includes changes to nearly all the guest-facing areas of the dining space and the service areas, including new flooring, furniture, wall coverings, counter equipment, and ceiling and lighting elements.
Subway has nearly 37,000 restaurants in more than 100 countries, with approximately 17,000 locations outside the U.S. It is the third-largest restaurant chain in the world, trailing only McDonald’s and Starbucks. Roark Capital acquired the Subway chain in April.
The full article about Subway’s plans for international growth can be found HERE.
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