Subway to expand Chinese footprint with 4,000 quick-service restaurants
Subway, a quick-service restaurant (QSR) brand, has entered into a master franchise agreement with Shanghai Fu-Rui-Shi Corporate Development Co., Ltd. (FRS) to expand its presence in Mainland China.
This historic agreement, backed by a consortium of private investors including Asia Investment Capital (AIC), marks the largest master franchise agreement in Subway’s history and one of the largest in the quick-service restaurant (QSR) industry.
Under the new partnership, Shanghai Fu-Rui-Shi Corporate Development will open nearly 4,000 Subway restaurants across Mainland China within the next two decades, multiplying Subway’s current footprint in the market by more than seven times. Additionally, Shanghai Fu-Rui-Shi Corporate Development will assume exclusive rights to manage and develop all Subway locations in Mainland China.
The consortium of investors, now part of the Subway family under Shanghai Fu-Rui-Shi Corporate Development, brings extensive experience in managing large global QSR chains throughout Asia. As part of their commitment, they will appoint a chief executive officer with significant QSR experience in the Chinese market.
Subway to expand Chinese presence with 4,000 quick-service restaurants via master franchise agreement with Shanghai Fu-Rui-Shi. Photo courtesy of Subway Restaurants/PRNewswire.
In Mainland China, Subway restaurants have seen positive sales momentum since emerging from the COVID-19 pandemic. This growth is attributed to a robust digital strategy, including partnerships with digital platforms and third-party delivery services, as well as the introduction of new menu items.
The new master franchise agreement will further enhance the guest experience, elevating Subway’s presence in the market and delivering added value to customers in Mainland China.
This agreement is part of Subway’s ongoing transformation journey and its focus on international expansion. It marks Subway’s 13th master franchise and development agreement within the past two years, resulting in over 9,000 commitments for future restaurants worldwide.
Within the Asia Pacific region, Subway continues to seek strong partners with local market expertise as it aims to double its current network of restaurants from approximately 3,500 to over 6,000 within the next five years.
The Subway brand remains committed to delivering fresh and customizable menu options, and this expansion in Mainland China represents a major step towards its goal of providing convenient and quality dining experiences to customers worldwide.
John Chidsey — Subway Global CEO said: “This agreement is a significant milestone in Subway’s international growth strategy as we continue to focus on strategically expanding our footprint and maintaining our position as one of the world’s largest restaurant brands.
“China is a key market with significant long-term growth opportunity, and we look forward to bringing the Subway experience to even more guests in the region.”