Subway is a largest and fastest growing market of franchises

Sandwich bar franchise Subway, which now has over 1,100 locations operating in the UK, has become the leading sandwich retailer in the country according to a report published by the British Sandwich Association in May. The international quick service brand tallied up sales of £300 million, nearly twice that of the second-placed retailer Tesco.

Although it is a sandwich shop, Subway's locations, customer profile and operating style, such as late opening hours, give it more in common with fast food chains such as McDonalds and Kentucky Fried Chicken than Prêt a Manger.


One industry expert says: "In a lot of city centres it has replaced the donor kebab shop as a place where people go to get food and hang out after the pub."

Subway, founded in Bridgeport Connecticut in 1965 by Fred DeLuca, now has 28,000 restaurants in 86 countries worldwide. The company first launched in the UK in Brighton in 1996 and grew slowly at first, as its concept based on made-to order filled rolls took time to catch on.

But by 2005 Subway's franchisees had a total of 300 British stores, partly thanks to clever financing plans which enable franchisees to sign up and fit out their stores relatively cheaply.

Subway may have just squeezed past McDonalds with 1,300 outlets in the UK and Ireland compared to 1,266 but the private company does not report its profits and turnover in the UK and Northern Ireland. However with an estimated turnover of £400m at present, it is less than half McDonald's £1 billion-plus British sales.

Still, the UK is an important model for Subway's spread into Europe, as the largest and fastest growing market outside north America.

Over 29,000 Stores Worldwide

The Subway network, which spans 86 countries, has its routes in a New York submarine sandwich shop opened by company founder Fred DeLuca in 1965 as a way to fund his college studies. Fred and his business partner Peter Buck opened 16 units before developing the franchise offering in 1974.

The company is now a major national brand in many markets worldwide and has overtaken McDonald's in the USA, Canada and Australia in unit numbers.


Major markets for Subway:

USA: Over 21,500 stores
Canada: Over 2,300 stores
UK: Over 1,100 stores
Australia: Over 1,000 stores
Germany: Over 600 stores
Mexico: Over 340 stores
Puerto Rico: Over 220 stores
News Zealand: Over 200 stores
Brazil: Over 145 stores
Japan: Over 140 stores

On September 25, Subway will be opening in as many as six schools in Scotland in the near future. Subway will be offering healthier food for the kids. Subway allows schools to pick and choose the menu available to students. Because there are regulations and requirements that differ from town to town, some school districts can serve certain items that others can't, So Subway allow schools to choose what they want to sell, which further reduces their costs. It's very flexible and marketable.

Sources :

QSR Magazine: Subway to Open School Locations in Scotland, September 25, 2008
Telegraph: How Subway overtook McDonalds, November 9, 2008 6:55PM GMT
The Franchise Magazine: Subway beats Tesco to number one spot in sandwich retail

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