Subway’s net increase in store numbers for the first time in six years, backed by large franchise agreement

• In 2023, Subway opened more stores than closed for the first time since 2016.
• Subway has closed thousands of stores over the years. As a result, the number of stores has been in net decline for years.
• Subway has been undergoing a complete overhaul, including the most extensive menu update ever.

For the first time since 2016, Subway opened more stores than it closed.

On February 1, the company reported that after six years of declining store numbers, it would see a “net increase in the number of stores worldwide” in 2023.

Restaurant Business reports that this is likely due to an increase in the number of stores overseas rather than in the United States. In 2023, Subway announced its largest-ever master franchise agreement, which will open approximately 4,000 stores in China over 20 years, increasing Subway’s number of stores in China by more than seven times.

Subway operates nearly 37,000 stores worldwide, including about 23,000 in North America. The company reports that it opened more than 1,000 stores around the world from the beginning of 2022 to mid-2023, and says it hopes to open 35% more stores in North America in 2023 than in 2022. there was.

However, Subway has closed thousands of stores over the years, resulting in a net decline in store count for years. The company closed more than 6,500 stores between 2015 and 2022, Restaurant Business reported.

In addition to increasing the number of stores, Subway is also proceeding with model changes at existing stores. About half of its stores worldwide have the new design, the company said on the 1st.

According to Subway, global same-store sales in 2023 will increase by 6.4%, with North America showing a slight slump at 5.9%. However, digital sales in North America increased by 21.8%.

The company has undergone a complete overhaul over the past few years, including the most extensive menu update ever, reviewing the ingredients used, and enhancing its standard sandwich menu, which can be ordered without any customization. In the United States, the company has introduced meat slicers at all stores and is also focusing on partnerships with entertainers and celebrities.

In August 2023, it was announced that it would be acquired by private equity (PE) investment firm Roark Capital, making Subway no longer a family-run business for the first time in about 60 years. Roark’s other fast food restaurants include Cinnabon, Sonic Drive-In, Jimmy John’s, Arby’s, Dunkin’ and Auntie Anne’s. Owns a casual brand.