Food
American sandwich maker Subway has 3,300 restaurants across 15 markets – but only 9 percent of these restaurants are in the fast-growing Asia-Pacific (Apac) region.
To double the number of its Apac restaurants in the next 5 years, Subway Asia-Pacific president Eric Foo hopes to lean on the group’s franchise model.
The group has its sights set on Indochina, including Vietnam, which has a lot of untapped opportunities, but finding the right local partner to raise its store count is key in the expansion equation.
“Local operators are key to helping us break into new markets and navigating cultural and regulatory differences so that we can grow quickly and efficiently,” he said.
He added that franchisees who understand Subway’s business and the market in which it operates will also be able to achieve economies of scale quickly and turn a profit. A master franchisee operating multiple stores would also be able to enjoy cost savings from bulk-importing fresh ingredients.
In May, Subway inked a master franchise deal with Pegacorn, a partner since 2019, to expand its presence in West Malaysia. Under this deal, Pegacorn will open 500 new Subway outlets across Peninsular Malaysia in the next decade.
