SAUDI ARABIA – Franchiser and operator Cenomi Retail has announced the opening of 12 new Subway locations across Saudi Arabia, setting the world record for the number of QSR outlet openings in one day.
The new outlets are located in Riyadh and Dammam.
They include a combination of four conventional restaurants in high-footfall prime areas in the two cities, two non-conventional restaurants in corporate offices, and six cloud kitchens in high-demand delivery zones.
According to Cenomi, these different restaurant formats are intended to cater to a broad range of customer segments while at the same time supporting the franchiser’s cost optimization strategy without compromising on providing the best customer experience.
The operator expressed confidence over the move, stating the revenue contribution from the new outlets will flow through Q4 2024 onwards, adding an estimated SAR 13 million (US$3.46 million) of revenue yearly.
Salim Fakhouri, CEO of Cenomi Retail expressed optimism that the use of the latest technology and reduced overall capex requirements combined with the additional revenue should result in an accelerated payback period of around two and a half years, lower than the industry average of 3 years.
Fakhouri said, “Successfully opening 12 new Subway branches in one day is an impressive world record that also underscores our strategic agenda of continuously developing our F&B footprint with Tier 1 Champion brands.”
“By strategically positioning cloud kitchens in high-demand delivery zones and opening traditional outlets in busy, high-footfall areas, Subway can serve a wider customer base with optimal capex deployment.”
The move is a continuation of Cenomi Retail’s aggressive expansion strategy. The operator reiterated it targets 50 new food and beverage store openings by the end of the year. The franchiser has already opened 31 new outlets so far in 2024.
The franchise agreement with Subway also aligns with the franchiser’s deliberate strategy of focusing on Tier 1 Champion brands.
The expansion is also a significant milestone for Subway’s strategy of increasing its presence in the Middle East. By leveraging both traditional outlets and cutting-edge technology, Subway is catering to evolving consumer preferences, particularly the rising demand for online food delivery.
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