Jason Miles
One of the largest deals Subway has ever made is to open nearly 4,000 stores in China
The largest sandwich business in the world, Subway, revealed on Tuesday that it will add roughly 4,000 additional locations throughout mainland China during the following two decades. The largest master franchise agreement in Subway’s history, the agreement is a part of the company’s strategy to increase its global presence.
Highlights of the Subway China Deal
- The agreement calls for 3,900 new stores over a 20-year period.
- Shanghai Fu-Rui-Shi Corporate Development Co Ltd (FRS), a group of private investors, will open the stores.
- In mainland China, FRS will have exclusive rights to store development and management.
- Subway anticipates making $20 billion in profit from the agreement.
Plans for the global expansion of Subway
Due to a drop in sales in the US, it has been having trouble lately. In order to increase sales, the corporation has shuttered thousands of locations in the US and is now attempting to grow internationally. it sees China as a vital market, and the opening of the new locations will enable it to expand there.
Subway’s Competition in China
Other fast food restaurants like McDonald’s and KFC give Subway fierce competition in China. The business, however, thinks that its freshly cooked sandwiches will provide it a competitive advantage in the market. In its new stores, Subway also intends to provide a selection of menu dishes with Chinese influences.
Subway’s Social Media Campaign
Additionally, Subway is starting a social media marketing effort to advertise its new stores in China. In addition to the testimonials from Chinese customers, the advertisement will include videos and pictures of the sandwiches that will be created as well as testimonials from Chinese customers. Millions of Chinese citizens are expected to be reached as a result of the campaign.
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