The number of Subway shops has steadily decreased for eight years. Subway is a popular sandwich chain. Many sites around the world have been closed by the company. In 2023, Subway closed an additional 443 stores, taking the total number of its restaurants to its lowest since 2005.
Some businesses may have thought this was the start of the end, but Subway is not letting up. The company has big goals for a big comeback, with the next few years being a time of rapid growth.
What’s Next for the Food Chain?
On October 1, Subway said it had won commitments for 10,000 new stores. Over the last three years, more than 20 master business deals have been signed.
These deals are an important part of Subway’s plan to get back on top of the fast food business. This promise also makes it clear that Subway is ready to compensate for lost ground despite its losses in the last few years.
Subway currently operates almost 37,000 stores in more than 100 countries. With the new promises, this number should increase significantly over the next few years. The sandwich giant wants to grow in the future, especially abroad.
Focus on International Growth
One of Subway’s main growth tactics is opening more locations worldwide. While the business is well-known in many parts of the world, it can still grow in many more places. For example, Subway is about to expand into Paraguay and Mongolia, a new country for the brand.
The business also wants to open more stores in places like France, Belgium, Switzerland, Luxembourg, the Czech Republic, Liechtenstein, Brazil, El Salvador, and Guatemala, where it already has shops.
Subway’s plans to open more restaurants in other countries are backed by strong agreements and promises. The company says these foreign deals are the reason for the promise of 2,000 new restaurants. However, this is only the start. Subway plans to sign more deals before the end of the year.
Getting Together with the Right Operators
The people in charge of Subway say that a big part of its recent success is its partnerships with restaurant owners who have run multiple locations. With these operators’ help, Subway has been able to speed up its growth plan because they have the means and knowledge to run multiple locations smoothly.
By working with these skilled workers, Subway has been able to update its look, remake thousands of its stores, and improve the whole experience for its customers. Because of this, the company’s general sales and web sales have gone up.
Mike Kehoe, who is in charge of global business development at Subway, says this approach has been a key part of the company’s recent successes. He said in a statement, “By working with the right partners, we are making big steps toward modernizing our brand image with both new and remodeled restaurants, improving the overall guest experience, and increasing digital sales.”
Changes that Subway Is Making
Subway has worked hard to improve both its business and its brand in the eyes of the people. The business has had several problems in the past few years, such as falling sales and problems with its partners.
Part of the plan to make the business healthier has been to close shops that aren’t doing well. Instead of putting too much effort into stores that aren’t doing well, Subway is now focused on growing in key areas and putting money into stores that could do well.
The changes to Subway’s menu are another big part of its growth. The company has changed what it sells by adding new products and meals to appeal to a wider range of people.
This isn’t just a stylistic change; Subway hopes that these changes to the menu will help it get more people, make more money, and become a stronger fast-food chain.
The new items are meant to compete with fast-casual chains that have been losing customers because their menus are fresher and have more types of food.
The company has also updated the look of thousands of its restaurants, making them look more modern. These changes are intended to make eating here more enjoyable for customers and encourage them to keep coming back. The company hopes these improved shops will help make customers happier.
Fresh Start and a Bright Future
Recently, Subway changed hands, which means that the company’s strategy and plans for the future will be very different.
But now that new people are in charge, the sandwich giant is taking bigger steps to turn things around. The new owner of the business brings new ideas and plans to make it more profitable and keep it going in the long run.
Because of these changes, things began to get better in 2023. Compared to the previous year, Subway said its sales and average sales per shop were higher.
These good signs show that Subway’s efforts to change are starting to pay off, which has given the company the confidence to move forward with its big growth plans.
Looking Ahead to 2024 and Past
Because Subway worked to change its business, it will be successful in the years to come. The company said it is “on track to more than double the number of new restaurant openings in 2024” compared to 2019 (before the pandemic). However, the company hasn’t said how many new restaurants it plans to open this year.
Subway wants to expand its business significantly in the coming years, in both known and new areas. Plans to grow quickly deals with other countries, and focusing on working with skilled workers should all help Subway expand its reach and make the business healthier overall.
There are Challenges and Chances
Even though Subway’s growth plan looks good, the company still has problems. There is a lot of competition in the fast food business, and Subway will have to keep changing to meet the needs of its customers, especially as healthier fast-casual eating options become more popular.
Long-term success will also depend on keeping good ties with partners and ensuring new owners have all the necessary tools and skills.
But Subway’s focus on foreign markets is a big chance. There is still a lot of room for new fast food restaurants in many of the countries where Subway is opening up shop. By taking advantage of these new areas, Subway might be able to achieve the fast growth it wants.
In Conclusion
The story of Subway’s rise and fall shows how important it is to be flexible and plan. After years of struggling and closing stores, the sandwich giant is about to make a big comeback. This is because it has big plans for growth, new owners, and a focus on going global.
Subway wants to become one of the best fast-food chains in the world again. They are opening thousands of new stores and giving their brand a new look.
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