Subway said on Tuesday it had signed an agreement to open more than 2,000 stores across Southeast Asia, a move the fast food chain called “one of” the largest main franchise deals in history. fast food restaurants “.
The sandwich concept will work with Everstone Group, a private investment firm focused on South Asia, to open sites in India, Sri Lanka and Bangladesh over the next 10 years. Currently, these markets have nearly 700 Subway restaurants.
“Today’s announcement represents an important milestone in Subway’s transformation journey and plans for global expansion,” Subway CEO John Chidsey said in a statement. “Everstone, with its in-depth knowledge and proven operational expertise in catering in the region, is the perfect partner as we embark on this new chapter for Subway in India and South Asia. “
Incoming stores, as well as existing units, will switch to the chain’s “Fresh Forward” design, which includes vibrant colors, digital menu boards, kiosks, LED lighting, a new set of wall art and seating. , and several other improvements.
Subway claims to be the world’s largest foodservice brand in terms of units, with nearly 40,000 restaurants in over 100 countries. The chain’s franchise network has more than 20,000.
“The magnitude of this deal is unprecedented and will ensure that Subway’s presence in India will more than triple over the next 10 years,” said Mike Kehoe, President of Subway for Europe, Middle East and South. ‘Africa, in a statement. “We have seen huge demand from existing Subway customers in India and could not be more excited to partner with Everstone to strengthen our presence and bring our beloved subs to even more Indian guests. “
Everstone has $ 6 billion in assets in private equity, real estate, credit, green infrastructure and venture capital. Within the quick service space, the company is also the primary franchisee of Burger King India, Burger King Indonesia and Domino’s Indonesia.
“Subway is an iconic brand and its philosophy of freshly made to order, healthier food delivered to homes and stores is at the heart of one of the biggest structural consumer trends we see in South Asia,” Sameer Sain, founder and CEO of Everstone Group, said in a statement. “Everstone Group is delighted to be a partner and custodian of Subway in the region. We firmly believe that our significant experience in the [quick-service restaurant] space, our strong digital orientation, our ability to innovate, as well as our proven execution capabilities, will enable Subway to become a dominant player in the region.
The move comes about a month and a half after Subway signed a master franchise agreement in the United Arab Emirates with its development partner Kamal Osman Jamjoom Group. The 34-year-old company oversees 675 stores in seven Middle Eastern countries. Additionally, in August, Subway signed an agreement with PT Sari Sandwich Indonesia to begin opening Indonesian branches in the fourth quarter.