Subway: significantly expands its presence in China

Miami / FL. (ssc) Subway IP LLC, one of the world’s largest restaurant brands, has entered into a new master franchise agreement with Shanghai Fu-Rui-Shi Corporate Development Company, Limited (FRS), to significantly expand its presence in People’s Republic of China. The agreement – funded by a consortium of private investors, including Asia Investment Capital (AIC) – is the largest master franchise agreement in Subway history and one of the largest across the entire QSR industry.

Under the new partnership, FRS will open nearly 4,000 restaurants in the People’s Republic over the next 20 years, growing Subway’s current footprint in the market by more than seven times. The group will also acquire the exclusive rights to manage and develop all Subway locations in China.

The original communication from Subway IP LLC, headquartered in Miami (Florida, USA), about the master franchise or country development agreements speaks neither of «China» nor of the «People’s Republic of China», and knows, whether in anticipatory obedience or in agreement with the Chinese partners, only a «Mainland China» or «Mainland». Admittedly, the status of the Republic of China (Taiwan) under international law is disputed and the subject of unresolved conflicts. However, the aggressive One China policy of the People’s Republic of China should not tempt other actors to forget that the People’s Republic cannot assert claims against the Republic of Taiwan, despite assertions to the contrary. Therefore, in recognition of the Republic of Taiwan’s high democratic standards, its sophisticated industry, and its prosperity for all citizens, any «Mainland» or «Mainland China» in this release – possibly for the repeated time – has been replaced with «People’s Republic,» «People’s Republic of China,» or «China.»

The consortium of investors, joining the Subway family as FRS, bring decades of experience managing large global QSR chains across Asia. In addition, the group will appoint a chief executive officer with significant QSR experience in the Chinese market.

«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,» said John Chidsey, Subway Global Chief Executive Officer. «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.»

Across the People’s Republic China, since coming out of the Covid-19 pandemic, Subway restaurants have experienced positive sales momentum, driven by a strong digital strategy – including third-party delivery and key partnerships with digital platforms – as well as the introduction of new menu items. The new master franchise agreement will further accelerate enhancements to the guest experience, elevating Subway’s presence in the market and creating value for guests in China.

As part of the brand’s multi-year transformation journey and focus on international expansion, the agreement marks Subway’s 13th master franchise and development agreement in the past two years, resulting in more than 9,000 future restaurant commitments around the world.

In Asia Pacific, Subway continues to seek strong partners with expertise in local markets as it aggressively doubles its current network of restaurants in the region from approximately 3,500 restaurants to more than 6,000 restaurants over the next five years.

About «Subway» Restaurants: As one of the world’s largest quick service restaurant brands, Subway serves freshly made-to-order sandwiches, wraps, salads and bowls to millions of guests, across more than 100 countries and territories in nearly 37,000 restaurants every day. Subway restaurants are owned and operated by Subway franchisees – a network that includes thousands of dedicated entrepreneurs and small business owners – who are committed to delivering the best guest experience possible in their local communities.