Subway, a global restaurant brand, has recently signed a new master franchise agreement with Shanghai Fu-Rui-Shi Corporate Development Co., Ltd. (FRS) to significantly expand its presence in Mainland China. This agreement, which is funded by a consortium of private investors including Asia Investment Capital (AIC), marks the largest master franchise agreement in Subway’s history and one of the largest in the entire Quick-Service Restaurant (QSR) industry.

Under the terms of this partnership, FRS will open nearly 4,000 Subway restaurants in Mainland China over the next 20 years, effectively growing Subway’s current footprint in the market by more than sevenfold. Additionally, FRS will acquire exclusive rights to manage and develop all Subway locations in Mainland China.

The consortium of investors, now known as FRS, brings extensive experience in managing large global QSR chains across Asia. To further strengthen their operations, the group will appoint a Chief Executive Officer with significant QSR experience in the Chinese market.

John Chidsey, Subway Global Chief Executive Officer, expressed his excitement about this milestone agreement, highlighting Subway’s international growth strategy and its focus on expanding its footprint as one of the world’s largest restaurant brands. Recognizing China as a key market with significant long-term growth potential, Chidsey emphasized Subway’s commitment to bringing the Subway experience to even more guests in the region.

In Mainland China, Subway restaurants have experienced positive sales momentum since emerging from the challenges posed by the COVID-19 pandemic. This growth can be attributed to a robust digital strategy that includes third-party delivery services and key partnerships with digital platforms, as well as the introduction of new menu items. The new master franchise agreement will further accelerate Subway’s efforts to enhance the guest experience, elevate its presence in the Chinese market, and deliver value to customers in Mainland China.

This agreement is a significant step in Subway’s multi-year transformation journey and its focus on international expansion. It represents Subway’s 13th master franchise and development agreement in the past two years, resulting in more than 9,000 commitments to open future restaurants worldwide.

Within the Asia Pacific region, Subway aims to double its current network of restaurants in the next five years. To achieve this goal, the brand is actively seeking strong partners with expertise in local markets. By expanding its network from approximately 3,500 to over 6,000 restaurants, Subway aims to solidify its presence and cater to the growing demand for its offerings in the region.

Through this new master franchise agreement with FRS and the consortium of private investors, Subway is poised for substantial growth in Mainland China. With its focus on strategic expansion and maintaining its position as a leading global restaurant brand, Subway is dedicated to bringing its renowned sandwich experience to an even wider audience, while continuously enhancing the guest experience and meeting the evolving needs of customers in Mainland China and around the world.