Subway to expand footprint in Europe, South America
Quick-serve sandwich giant Subway is touting its international expansion efforts.
The company, which was recently sold to private equity firm Roark Capital for nearly $9.6 billion, says that over the past three years, it has signed more than 20 master franchise agreements, resulting in over 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 Subway's entry into Paraguay and Mongolia and significantly expanding its presence across France, the Czech Republic, Luxembourg, Belgium, Switzerland, Liechtenstein, Brazil, El Salvador and Guatemala. In total, Subway says these agreements will result in 2,000 future restaurant commitments, with more agreements expected before the year's end. The brand is on track to more than double the number of new restaurant openings in 2024, compared to 2019 (pre-COVID).
[READ MORE: Subway signs its largest-ever master franchise agreement — for 4,000 locations]
"Subway's global growth strategy of partnering with well-resourced, experienced multi-unit operators is proving to be successful," said Mike Kehoe, global chief development officer at 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."
In addition to its international growth, Subway 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 convenience chain Love's Travel Stops, and strengthening long-term retail relationships with leading companies, such as Walmart and Aramark. Subway is also growing its presence in airports with franchise group 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," added Kehoe.
Subway has nearly 37,000 restaurants across more than 100 countries, making it one of the largest restaurants in the world.
