Subway Is Planning to Open 10,000 New Restaurants—Here's Where
Out of all the restaurant chains that have been shuttering locations recently, few have done so at such a rapid pace as Subway. The fast-food sandwich giant has been closing locations for eight consecutive years, with last year's net total of 443 closures bringing Subway to its lowest store count since 2005. However, after such a significant decline in its footprint, Subway is setting its sights on expeditious growth in the years ahead.
The company announced on Oct. 1 that it has scored a whopping 10,000 commitments for future restaurants through more than 20 master franchise agreements signed over the past three years. This means that Subway's already lofty store count—the chain currently operates nearly 37,000 restaurants across more than 100 countries and territories—is going to get much, much higher in the coming years.
Expanding Subway's footprint in overseas markets will be a major priority as it opens new locations. The chain plans to enter Paraguay and Mongolia, as well as open additional shops in several countries where it already boasts a presence: France, the Czech Republic, Luxembourg, Belgium, Switzerland, Liechtenstein, Brazil, El Salvador, and Guatemala.
According to Subway, these international agreements "will result in 2,000 future restaurant commitments, with more agreements expected before the year's end."
The company said it has managed to accelerate growth by focusing on international expansion and partnering with multi-unit restaurant operators. It also touted that it's "on track to more than double the number of new restaurant openings in 2024" compared to pre-COVID times in 2019. Subway did not immediately respond to our query regarding the exact number of new restaurants it expects to open this year.
This big expansion push comes during a period of major change for Subway. The sandwich chain has been working to improve its financial performance and public image after contending with issues such as lagging sales and tension with franchisees in recent years.
Shuttering underperforming locations to improve the overall health of the business has been one aspect of Subway's transformation efforts. Additionally, the chain has overhauled its menu with new ingredients and sandwiches, found a new owner, remodeled thousands of restaurants, and partnered with larger, experienced operators. The chain's revenues and average sales per store both improved in 2023, indicating that these methods may be starting to pay off.
Subway said that having skilled, capable operators in place has proven especially useful in its overseas expansion efforts.
"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."
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