Joel Libava
Subway®, one of the world’s leading restaurant brands, is making significant strides in its global growth strategy, aiming to expand its footprint with 10,000 more restaurants expected to open. Continue reading.
Subway Restaurant Expansion: 10,000 New Subway’s Expected To Open
In the past three years, Subway has signed over 20 master franchise agreements. The agreements include commitments to open 10,000 new Subway restaurants.
These agreements have contributed to over 40% of the brand’s new restaurant openings in 2024 alone. Notably, seven of these agreements were signed this year, marking Subway’s entry into new markets such as Paraguay and Mongolia.
The brand is also significantly expanding its presence in France, the Czech Republic, Luxembourg, Belgium, Switzerland, Liechtenstein, Brazil, El Salvador, and Guatemala. Collectively, these agreements promise 2,000 new restaurants, with additional agreements anticipated before the year concludes.
Subway’s international growth, paired with its strategic focus on attracting multi-unit operators, including large national corporate partners, has accelerated the pace of new restaurant openings.
That’s why the brand is poised to more than double its new restaurant openings in 2024 compared to 2019, a remarkable achievement considering the challenges posed by the COVID-19 pandemic.
“Subway’s global growth strategy of partnering with well-resourced, experienced multi-unit operators is proving successful,” stated Mike Kehoe, Global Chief Development Officer at Subway. “By collaborating with the right partners, we are modernizing our brand image through both new and remodeled restaurants, enhancing the overall guest experience, and boosting digital sales.”
Non-Traditional Subway Restaurant Segment To Expand
As part of its smart growth strategy, Subway is also focusing on ensuring that its restaurants are optimally located and designed. This includes strengthening its non-traditional business segment, which accounts for approximately 25% of its global footprint.
For instance, Subway has been signing new and expanded development agreements with strategic partners like Love’s Travel Stops and reinforcing long-term retail relationships with major companies such as Walmart and Aramark.
Furthermore, Subway is leveraging its adaptable restaurant formats to establish a presence in airports, collaborating 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,” said Kehoe. “This makes it an ideal opportunity for multi-unit franchisees or national partners looking to expand their portfolios.”
With its ambitious growth strategy and commitment to enhancing the guest experience, Subway is hoping to solidify its position as a leader in the global restaurant industry.
(Top image courtesy of the Subway corporate website)
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