Mar 19, 2010 – Subway to open 100 stores across Asia
this year
By Chris Howells |
SINGAPORE: Subway, the world's largest sandwich franchise, is
looking to nearly quadruple the number of its outlets in Asia in
the next five years. It's setting a target of more than 3,000, from
about 800 now.
Learn what it takes to open a Subway Franchise in the U.S.
http://www.franchiseexpo.com/Subway-Franchise.cfm
Subway founder Fred De-Luca disclosed this in an exclusive
interview with Channel News Asia.
Subway outlets are already a familiar sight in Asia and the
continent will soon be chomping down more of these sandwiches.
With some 32,000 stores around the world now, mostly in the west,
Subway's founder Fred De-Luca is looking for a bigger bite of
profits from Asia.
The region is still a small part of Subway's business contributing
just 2.5 per cent of overall revenues.
The company's brand awareness is also quite low in China, with 150
stores and a penetration rate of less than one per cent compared to
more developed markets like Singapore of 30 per cent or more.
And the strategy ahead is to grow the store count.
Fred Deluca, founder & president, Subway, said: "Right now, in
Asia, we've got 800 stores in operation. Over the next year we'll
be adding about 100 stores to the region and we look forward to
much more growth in the region. China and India are both growing at
a pretty good clip. Both will add about 40 stores each this
year."
The sandwich chain currently grows at a rate of 2,000 stores per
year and despite last year's downturn, revenues continued to
rise.
Subway said it wants to match the store count of McDonald's in
Asia, especially China, in 10 years.
Mr Deluca said: "I think there's a very good chance we could grow
to 3,000 stores in Asia within five years. I could see a day coming
where we'll be adding 1,000 stores a year in Asia will certainly be
a possibility."
Subway's strategy is to grow with the same franchise model wherever
it goes in the world that is, to start small, with small sized
outlets and small initial investments for franchisees.
It believes this will lower the break-even point for the
franchisee. - CNA/vm
Learn what it takes to open a Subway Franchise in the U.S.
http://www.franchiseexpo.com/Subway-Franchise.cfm
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