The brand plans to open 10,000 restaurants.
Fast food leader Subway will persist in implementing its ‘smart growth strategy,’ ensuring that new locations are strategically chosen based on optimal location, branding, and format. This approach aims to strengthen the brand’s presence in non-traditional restaurant settings.
Mike Kehoe, Subway’s Global Chief Development Officer, stated, “Non-traditional locations account for roughly 25% of Subway’s global presence and contribute between 20-30% of the brand’s overall sales.” This suggests that out of the 10,000 new restaurants planned, around 2,500 could be established in high-traffic areas such as railways, airports, hospitals, and universities, consolidating Subway’s market position.
According to the International Air Transport Association, airport passenger numbers could reach 8.2 billion by 2037, with approximately 50% of these travelers consuming food and beverages at airport venues. Additionally, a report from The Office of Rail and Road noted that station catering retailers generated over £700 million in revenue in 2019 and 2020.
Kehoe remarked, “From a consumer perspective, Subway is a top choice for travelers looking for quick, delicious meals on the go in travel hubs. Our brand’s reputation for providing affordable, healthier options makes Subway an ideal fit for venues like hospitals, universities, and airports. We are also enhancing convenience by increasing our grab-and-go offerings in North America and testing this approach in other international markets.”
Furthermore, Kehoe emphasized that franchisees favor non-traditional formats due to their low investment costs, simplified operations requiring minimal equipment, and the ability to function in spaces as compact as 400 sq ft. In the UK, the startup cost for a Subway franchise is approximately £150,000, depending on size and location.
“We are continuously improving our menu and delivering a superior in-restaurant and online experience that offers added convenience and value for our guests. For instance, earlier this year, we launched a comprehensive digital experience in key European markets, which includes interactive self-serve kiosks and an upgraded app and loyalty program to ensure a seamless experience across all platforms,” Kehoe added.
