GLOBAL – Multinational fast food chain Subway has announced it has successfully crossed the 10,000 international restaurant franchise commitment milestone in three years.
The commitments are the result of 20 master franchise agreements and are expected to account for 40% of new openings in 2024.
These master franchise agreements are expected to add 10,000 new outlets to its already existing 37,000 locations spread across 100 countries.
Seven of these master franchise agreements have already been signed in 2024, which are expected to introduce the chain to the Mongolian and Paraguayan markets.
They will also facilitate expansion into Europe, with new locations expected in France, the Czech Republic, Luxembourg, Belgium, Switzerland, and Liechtenstein.
The commitments are also expected to facilitate expansion into El Salvador, Brazil, and Guatemala.
Through these master franchise agreements, Subway is projected to double its new outlet openings in 2024 compared to 2019 before the COVID-19 pandemic.
The chain also expressed its commitment to work with multi-unit operators as part of this expansion plan. The partnerships include large corporate partners for nonconventional expansion like Aramark, Walmart, and Love’s Travel Stops.
These types of partnerships account for 25% of new locations in the signed commitments.
Subway also announced plans to enhance its presence in Airports in Spain and Mexico as well as hospital and college campuses.
In an official statement, Mike Kehoe, Subway’s Chief Global Development Officer, said, “Subway’s global growth strategy of partnering with well-resourced, experienced multi-unit operators is proving to be successful.”
“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.”
According to Kehoe, the main objective of the strategic franchise commitments is ensuring the outlets are in the right, promising location, with the right image and formats.
The new locations are expected to feature Subway’s Fresh Forward design and will include changes to all of the guest-facing areas of the dining space and the service areas.
These changes will also include new flooring, furniture, wall coverings, counter equipment, and ceiling and lighting elements.
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE
