Subway has signed over 20 master franchise agreements since 2021, resulting in 10,000 future restaurant commitments. In 2024, the company entered Paraguay and Mongolia and expanded in Europe and Latin America. Subway’s strategy focuses on partnering with experienced operators and investing in non-traditional locations, supported by its recent acquisition by Roark Capital.
Subway, the quick-service restaurant chain, has reported a resurgence in growth with over 20 master franchise agreements signed within the last three years, resulting in commitments for 10,000 future locations. The company’s emphasis on international expansion in 2024 has led to its entry into Paraguay and Mongolia, along with increased presence in several European and Latin American countries.
The agreements signed in 2024 include seven partnerships aimed at expanding Subway’s operations in countries such as France, Belgium, Switzerland, and Brazil, contributing a total of 2,000 new restaurant commitments. According to Mike Kehoe, Subway’s global chief development officer, partnering with well-resourced, experienced multi-unit operators is key to revitalizing Subway’s brand image and enhancing customer experiences.
Subway is focusing on non-traditional business models, which currently make up about 25% of its global presence. Recent collaborations with companies such as Love’s Travel Stops and long-term relationships with Walmart and Aramark are part of this strategy. Additionally, Subway is expanding in airports and academic institutions, leveraging a flexible business model.
The company’s recent acquisition by Atlanta-based Roark Capital has prompted these changes as Subway seeks to modernize its franchise approach while currently operating nearly 37,000 locations across more than 100 countries.
Subway is a leading quick-service restaurant brand known for its submarine sandwiches and salads. In recent years, it has faced challenges with restaurant closures, prompting a strategic shift towards global expansion. The emphasis on master franchise agreements allows for quicker growth and adaptability in diverse markets, enabling Subway to rebuild its brand and customer base effectively.
Subway’s strategic growth through master franchise agreements is a significant turnaround for the brand, showcasing its commitment to global expansion in emerging markets like Paraguay and Mongolia. The partnerships with skilled operators and focus on innovative spaces signify a proactive approach to modernization and operational efficiency. With a strong foundation in non-traditional venues and a robust international presence, Subway is positioned for continued success.
Original Source: www.nrn.com
