Subway signs deal for 4,000 new sandwich shops in China over next 20 years
Subway has announced the largest master franchise agreement in its history as part of plans to expand in China.
Funded by a consortium of private investors, including Asia Investment Capital, the new agreement with Shanghai Fu-Rui-Shi Corporate Development Company (FRS) will result in a significant expansion of the brand’s presence in the country.
Under the new partnership, FRS will open nearly 4,000 restaurants in mainland China over the next 20 years to increase Subway’s current footprint in the market by more than seven times. The group will also acquire the exclusive rights to manage and develop all Subway locations.
John Chidsey, Subway global chief executive, 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.”
Subway restaurants in China have experienced positive sales momentum since the country emerged from the Covid-19 pandemic. , This has been driven by a strong digital strategy which includes third-party delivery and key partnerships with digital platforms. In addition to expansion, Subway said the new agreement will accelerate enhancements to the customer experience.
