Subway plans to double its Asia Pacific store count within five years
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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.
Questions & Answers
Q.What is the current presence of Subway in the Asia-Pacific region?
What is the current presence of Subway in the Asia-Pacific region?
Subway currently operates 3,300 restaurants across 15 markets globally. Only nine percent of these establishments are located in the fast-growing Asia-Pacific region, which represents a relatively small proportion of their global footprint.
Q.Which specific regions are targeted for Subway's expansion in Asia-Pacific?
Which specific regions are targeted for Subway's expansion in Asia-Pacific?
Subway has identified Indochina, including Vietnam, as a primary target for its expansion efforts. The company sees significant untapped opportunities in these areas, aiming to use its franchise model for growth.
Q.Why is finding the right local partner important for Subway's expansion strategy?
Why is finding the right local partner important for Subway's expansion strategy?
Local partners are crucial for breaking into new markets and navigating cultural and regulatory differences effectively. They help Subway grow quickly and efficiently, understand the local market, and achieve economies of scale rapidly.
Q.Which recent deal reflects Subway's franchise expansion strategy?
Which recent deal reflects Subway's franchise expansion strategy?
In May, Subway signed a master franchise agreement with Pegacorn, a partner since 2019, to boost its presence in West Malaysia. This deal aims to open 500 new Subway outlets across Peninsular Malaysia over the next ten years.
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