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Quiznos China plans 1500 stores

By Rajiv Menon
2 min read
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US fast food chain Quiznos has revealed more details of its plan to roll out a massive 1500 strong network across China.

Last October, Quiznos signed a deal with a subsidiary of Lion Group’s Parkson Retail Group to roll out 1500 stores across China.

In the US the deal has been described as possibly the largest franchise deal in history, but the planned roll out does span a lengthy 15 year timeline – now a four year longer timeline than originally announced last year.

The deal was originally launched with Malaysian company AUMH, which Parkson bought a stake in last year.

“We are looking forward to paving the way for Quiznos in China,” said AUMH director Tham Lih Chung last year. “The brand’s long standing history of international accomplishments, combined with our knowledge of the region and culture, is sure to be met with success in China.”

But this month, Quiznos International president Ken Cutshaw has revealed further details of the plan in an email interview with QSR magazine online.

“To be the foundation of a China [food and beverage] group that has already established its successful roots in the China retail sector‎ is exciting for the Quiznos brand,” he said.

Three Quiznos will open in Shanghai this year, then a further 100 in 2016. Parkson will then focus on the Shanghai market before expanding into other parts of China. With about 60 department stores in China, it shouldn’t find it too hard establishing an early foothold there.

Cutshaw said he believes the scale of the Parkson partnership marks the most ambitious ever of a franchised food network, eclipsing the 1400-strong Dunkin’ Donuts deal of last year.

Tham Lih Chung, a spokesman for The Lion Group, told QSR magazine Quiznos will do well in China because western brands are widely accepted there.

Meanwhile, Cutshaw said Quiznos will continue its aggressive international expansion while its US operation restores its balance sheet (the US parent company was placed in Bankruptcy Protection a year ago).

New stores are opening in Malaysia, Taiwan, Indonesia, Iraq, Pakistan and the United Arab Emirates.

“Every successful global restaurant chain begins with a successful US foundation,” he said. “Quiznos is no exception. And Quiznos will continue to expand its presence both domestically and internationally with strong franchisees like The Lion Group of China.”

Questions & Answers

Q.

Which company is now primarily responsible for rolling out Quiznos stores in China?

A.

Lion Group’s Parkson Retail Group signed a deal with Quiznos to roll out 1500 stores. Parkson bought a stake in the original partner, AUMH, and will focus on the expansion.

Q.

How long is the planned timeline for opening 1500 Quiznos stores in China?

A.

The planned roll-out spans a lengthy 15-year timeline. This is four years longer than the timeline originally announced when the deal was launched last year.

Q.

What are the immediate expansion plans for Quiznos in China?

A.

Three Quiznos stores are set to open in Shanghai this year, with a further 100 planned for 2016. Parkson will then focus on the Shanghai market before expanding further.

Q.

Why is the US parent company of Quiznos expanding internationally if it's in difficulty?

A.

The US parent company was placed in Bankruptcy Protection a year ago. Quiznos will continue aggressive international expansion while its US operation restores its balance sheet.

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