Global sandwich chain Subway’s latest signing is the brand’s largest master franchise agreement and it will see nearly 4000 restaurants open across China over the next 20 years.
The agreement with Shanghai Fu-Rui-Shi Corporate Development Co., Ltd. (FRS) is funded by a consortium of private investors, including Asia Investment Capital (AIC).
Under the new partnership, FRS will grow Subway’s current footprint in the region by more than seven times. The group will also acquire the exclusive rights to manage and develop all Subway locations in Mainland China.
John Chidsey, Subway global CEO, said “This agreement is a significant milestone in Subway’s international growth strategy as we continue to focus on strategically expanding our footprint and maintaining our position as one of the world’s largest restaurant brands.
“China is a key market with significant long-term growth opportunity, and we look forward to bringing the Subway experience to even more guests in the region.”
China consortium will appoint CEO
The consortium of investors behind FRS brings decades of experience managing large global QSR chains across Asia and will appoint a CEO with experience in the Chinese market.
This agreement is Subway’s 13th master franchise and development agreement over the past two years. These deals are part of the brand’s multi-year focus on international expansion and will result in more than 9,000 new restaurants globally.
In Asia Pacific, Subway has aggressive plans to double its current network of restaurants in the region from approximately 3,500 restaurants to more than 6,000 restaurants over the next five years.
Earlier this year the brand reported a sales boost of 12 per cent globally for Q1 2023. In China a strong digital strategy and a fresh menu have boosted Subway sales post-pandemic.
In January 2023 Subway revealed it is seeking a buyer for the business. Reuters reported last month there is a debt plan to help secure the US$10 billion sale.