Subway, a sandwich-centric restaurant chain, reportedly is making progress on its global growth strategy, expanding its footprint around the world.
Over the past three years, Subway states it has signed more than 20 master franchise agreements, resulting in more than 10,000 future restaurant commitments and contributing to over 40% of the brand's new restaurant openings this year. Seven of the 20 master franchise agreements have been signed in 2024, marking its entry into Paraguay and Mongolia and expanding its presence across France, the Czech Republic, Luxembourg, Belgium, Switzerland, Liechtenstein, Brazil, El Salvador, and Guatemala. In total, these agreements will result in 2,000 future restaurant commitments, with more agreements expected before the year's end.
Subway's international growth, coupled with its focus on attracting multi-unit operators (including large, national corporate partners), reportedly has accelerated new restaurant openings. Company representatives report the brand is on track to more than double the number of new restaurant openings in 2024, compared to 2019 (pre-COVID).
"Subway's global growth strategy of partnering with well-resourced, experienced multi-unit operators is proving to be successful," says Mike Kehoe, global chief development officer, Subway. "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."
As part of Subway's growth strategy, the brand is also focused on strengthening its non-traditional business, which accounts for approximately one-quarter of its global footprint. This includes signing new and expanded development agreements with brands like Love's Travel Stops and strengthening long-term retail relationships with companies like Walmart and Aramark. Subway also is looking to grow its presence in airports, with partners like Areas in Mexico and Spain, as well as on college and hospital campuses.
"Subway's flexible format allows the brand to fit into various retail spaces, with low investment requirements, making it an ideal opportunity for a multi-unit franchisee or national partner looking to expand their portfolio," states Kehoe.
