INDIA – American multi-national fast food restaurant franchise, Subway has entered into a master franchise agreement with South Asia-focused private equity company, Everstone Group, with the aim of expanding its presence in the region.
Subway, which runs around 700 restaurants across India, did not have a master franchisee in India and had its operations run by Subway Systems India Private Limited.
As part of the new deal, similar to other agreements with quick-service restaurants (QSRs), Everstone will be responsible for the operations, marketing, and development of Subway in India.
Terming the partnership as “the largest ever franchise agreement in QSR history”, Subway said its new master franchisee will open more than 2,000 new restaurants in India, Sri Lanka, and Bangladesh in the next ten years.
The new restaurants — as well as upgrades to existing locations — will adopt the company’s new, modern, and inviting “Fresh Forward” design and meet the needs of today’s consumer.
They will be outfitted with comfortable guest indoor dining spaces as well as numerous delivery and order-ahead options, with a strong digital-first strategy.
Everstone has a real estate advantage by being one of the largest developers of shopping malls and warehouses, and this will be critical in growing the Subway brand in India.
The Group also has experience in managing QSR businesses as it is the master franchisee of Burger King India, Burger King Indonesia, and Domino’s Indonesia, amongst other investments in this space.
“Today’s announcement represents a significant step in Subway’s transformation journey and global expansion plans,” said John Chidsey, chief executive officer of Subway.
“Everstone, with extensive knowledge and proven restaurant operational expertise in the region, is the ideal partner as we begin this new chapter for Subway in India and South Asia.”
Struggling with a plunging top line, the Connecticut-headquartered sandwich maker is on a global overdrive under CEO John Chidsey to slash costs and consolidate its business.
This new agreement is therefore a great boost to the Chidsey led multi-year transformation journey to improve the Subway brand as the business expands its presence around the world.
In Europe, the Middle East and Africa, Subway plans to double its number of restaurants across the region in the coming years and is looking at more partnerships in the region.
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