Subway inks deal for 4,000 new sandwich shops in China over next 20 years
Reuters
Published Jun 06, 2023 13:08
Updated Jun 06, 2023 13:26
By Hilary Russ
NEW YORK (Reuters) - Subway reached an agreement with a master franchisee to open nearly 4,000 new sandwich shops across mainland China over the next 20 years, it said on Tuesday.
International expansion is a key growth strategy for the privately owned U.S.-based chain, which is in the midst of a turnaround plan that also relies on remodeled restaurants, updated menus and a splashy marketing campaign.
While it seeks to expand overseas, the company has been closing thousands of U.S. locations amid a host of problems including over-expansion and discounts that eroded franchisees' profits.
Even so, Subway's global comparable sales rose 12.1% in the first quarter.
Other companies are also beefing up their presence in China, including Starbucks (NASDAQ:SBUX), which plans to open 3,000 new stores there by 2025.
Subway's deal with master franchisee Shanghai Fu-Rui-Shi Corporate Development Co Ltd (FRS) is the largest such agreement in Subway's history. FRS is funded by a consortium of private investors including Asia Investment Capital.
FRS will get exclusive rights to manage and develop all Subway locations in China. The 4,000 new restaurants would be a seven-fold increase in Subway's current footprint there.
"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," Subway Chief Executive John Chidsey said in a statement.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.