The quick-service restaurant brand looks to new master franchise agreements for growth
Quick-service brand Subway is working to turn around closures of the past few years. On Tuesday, the company said that, over the past three years, it has signed more than 20 master franchise agreements with 10,000 future restaurant commitments.
The company, which divides headquarters between Miami and Shelton, Conn., said it took steps in 2024 to expand its footprint, especially globally.
“Seven of the 20 master franchise agreements have been signed in 2024, marking its entry into Paraguay and Mongolia and significantly expanding its presence across France, the Czech Republic, Luxembourg, Belgium, Switzerland, Liechtenstein, Brazil, El Salvador and Guatemala,” the company said. “In total, these agreements will result in 2,000 future restaurant commitments.”
“Subway’s global growth strategy of partnering with well-resourced, experienced multi-unit operators is proving to be successful,” Mike Kehoe, Subway’s global chief development officer, said in a statement. “By working with the right partners, we are making significant strides in modernizing our brand image with both new and remodeled restaurants, improving our overall guest experience, and growing digital sales.”
Subway said it would continue its focus on non-traditional business, which accounted for about a quarter of its global footprint.
The company signed new or expanded development agreements with such companies as Love’s Travel Stops and strengthened long-term retail relationships with such companies as the retailer Walmart and onsite foodservice giant Aramark.
Subway is also taking advantage of its flexible format to grow its presence in airports, with partners like Areas in Mexico and Spain, as well as on college and hospital campuses, the company said.
In April, Atlanta-based Roark Capital completed its acquisition of the Subway chain.
Subway has nearly 37,000 restaurants in more than 100 countries.
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