Subway plans to open thousands of sandwich stores in China, seven times its current presence.
The world’s largest sandwich company announced Tuesday that it will establish almost 4,000 additional outlets in mainland China over 20 years.
“The largest master franchise agreement in Subway history and one of the largest across the entire [fast-food restaurant] industry,” Subway stated.
Subway’s contract with Shanghai Fu-Rui-Shi Corporate Development (FRS) will enable the massive expansion. China will get a new CEO.
Subway said FRS, backed by a syndicate of private investors, would gain sole control of all the brand’s mainland China outlets under the arrangement.
Subway will add nearly 4,000 outlets in China in one of its largest partnerships.
“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,” said Subway Global CEO John Chidsey.
We look forward to offering the Subway experience to even more guests in China, a vital market with long-term development potential.
Subway is expanding its collaborations in the US and internationally, notably in Asia Pacific.
Subway wants to increase “its current network of restaurants in the region, from approximately 3,500 restaurants to more than 6,000 restaurants over the next five years,” it stated.
The corporation operates almost 37,000 restaurants in over 100 countries.
Subway sells sandwiches, wraps, salads, and bowls. After its greatest menu modifications, the company set a sales record last year.
While considering a sale, the company expands into China. After a menu makeover, location renovations, and worldwide development, the privately owned firm recruited JPMorgan (JPM) Chase to find a buyer in February.
Wednesday’s update request went unanswered by Subway. Before the transaction, the corporation has declared it won’t comment.
It would be the biggest fast food purchase since Dunkin’ Donuts’ $11.3 billion acquisition in 2020.