Subway Plans Major Push in Mainland China

Subway (Miami) has entered into a new master franchise agreement with Shanghai Fu-Rui-Shi Corporate Development Co. Ltd. (FRS) to significantly expand its presence in Mainland China. The agreement – funded by a consortium of private investors, including Asia Investment Capital (AIC) – will translate into FRS opening nearly 4000 restaurants in Mainland China over the next 20 years, growing Subway’s current footprint in the market by more than seven times.

The pact is the largest master franchise agreement in Subway’s history.

“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” John Chidsey, Subway Global CEO, said in a news release.

Since coming out of the Covid pandemic, Subway restaurants in Mainland China have experienced positive sales momentum, driven by a digital strategy – including third-party delivery and key partnerships with digital platforms – as well as the introduction of new menu items.

As part of the brand’s multi-year transformation journey and focus on international expansion, the agreement with FRS marks Subway’s 13th master franchise and development agreement in the past two years, resulting in more than 9000 future restaurant commitments around the world.

One of the world’s largest quick service restaurant brands, Subway currently has nearly 37,000 restaurants across more than 100 countries and territories.