America's Largest Sandwich Chain Is Overhauling Its Franchise System

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Subway is now focusing on its franchise system, after "refreshing" its whole menu in 2021. The sandwich brand is going on a "multi-year transformational journey," which includes revamping its franchisee roster.

Subway is aiming to partner with larger franchising organisations to replace some of its single-unit franchisees, many of whom are first-time company owners.

According to the statement, "the brand is aggressively encouraging well-resourced, multi-unit franchisees to join the firm... and to negotiate the prospective acquisition of restaurant portfolios with existing operators."

Subway's longer-term ambition of becoming a "experienced-focused" firm includes the transfer to larger-scale contracts. The restaurant business claims it wants to improve the customer experience at its locations and believes that well-funded multi-unit operators are the best way to do it.

"We're scaling up with high-caliber multi-unit franchisees that offer operating skills, growth capabilities, and cash to guarantee we remain competitive for years to come," said Steve Rafferty, Subway's SVP of development.

It's a major development for Subway. Because it has some of the lowest beginning expenses in the fast-food sector, the brand's 21,000 outlets are largely run by single-unit, mom-and-pop operators.

According to a 2019 estimate, Subway's initial franchise fees are as low as $15,000, or approximately a third of what McDonald's charges. It's a selling element that's helped the fast-food business become the largest in the United States.

Subway is putting its well-known growth strategy on hold in order to shift to a stronger, more consolidated franchise structure, better positioned to give a "consistent, high-quality client experience."

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