Cenomi Retail opens 14 Subway outlets in one day

SAUDI ARABIA – Subway’s exclusive master franchisee in Saudi Arabia has opened 14 new outlets in a single day, a new milestone for the franchise.

Cenomi Retail has surpassed its previous record by opening 14 stores in a single day, exceeding the prior achievement of 12 store openings.

This milestone underscores the company’s aggressive expansion strategy and its dedication to addressing the increasing demand for fresh, high-quality food across Saudi Arabia.

These 14 new openings are part of Cenomi Retail’s broader efforts to strengthen its position in Saudi Arabia’s rapidly growing Food and Beverage (F&B) market, projected to experience a Compound Annual Growth Rate (CAGR) of 9% from 2022 to 2026.

Saudi Arabia, the largest country in the MENA region, holds a market size of approximately US$22 billion, providing significant growth opportunities for Cenomi Retail in this promising sector.

By September 2024, Cenomi Retail’s 28 fully owned Subway stores contributed 14.8% of the revenue for Tier 1 Champion Brands in the F&B segment.

The company expects this figure to rise as the number of Subway locations in Saudi Arabia increases to 57 by the end of 2024.

This expansion is expected to boost Subway’s contribution to 25% of the F&B revenue for Cenomi Retail by 2025, driven by an enhanced marketing strategy, a more diverse menu, and a continued emphasis on delivering an exceptional customer experience.

Salim Fakhouri, CEO of Cenomi Retail, highlighted the significance of this achievement, stating, “Opening 14 new Subway stores in a single day demonstrates the growth potential of the Saudi market.”

“With Saudi Arabia being the largest F&B market in MENA, the opportunities are vast, and Cenomi Retail is committed to capitalizing on these prospects with an expanding footprint and a focus on excellent customer service.”

The new Subway stores consist of 8 traditional locations in high-traffic areas, with 12 stores in Riyadh, alongside 6 non-traditional outlets in strategic venues such as hospitals, banks, universities, and government institutions.

These non-traditional stores are designed to provide unique customer experiences, ensuring that Subway’s offerings are accessible to a broader audience.

The total payback period for these 14 stores is estimated at just 2.7 years, outperforming the industry benchmark and further demonstrating the strength of the Subway brand and Cenomi Retail’s operational efficiency.

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