Dive Brief:
- Subway has signed over 20 master franchise agreements for over 10,000 restaurant commitments globally over the past three years, the chain said in a Tuesday press release.
- Seven of these master franchise agreements, representing about 2,000 new restaurants, were signed this year and will bring Subway to Paraguay and Mongolia for the first time. Subway will also expand its presence in France, the Czech Republic, Luxembourg, Belgium, Switzerland, Liechtenstein, Brazil, El Salvador and Guatemala.
- Last year, the chain signed the largest deal in its history for 4,000 units in mainland China over 20 years.
Dive Insight:
International expansion has been a major part of Subway’s new unit growth, representing about 40% of its new openings in 2024. Along with its focus on working with multi-unit operators in North America, Subway expects to double the number of new openings this year compared to 2019.
“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,” Mike Kehoe, global chief development officer of Subway, said in a statement.
The chain is also expanding its non-traditional business, which makes up about a quarter of its global footprint. Subway is signing new and expanded agreements with companies like Love’s Travel Shop, Walmart and Aramark. The chain is also expanding its presence in airports with partners like Areas in Mexico and Spain, as well as in colleges and hospitals.
The new commitments will bring the chain close to 50,000 restaurants when the franchise agreements come to fruition, as it currently has about 37,000 units globally. Some franchisees, however, have been struggling in North America for years, and a 48-unit franchisee declared bankruptcy earlier this year. Domestic franchisees continue to face low-level profitability.
Subway has focused heavily on expanding into the snacking category, however, which has helped drive traffic during the afternoon. The brand continues to add new items to the menu across dayparts.
