A winning strategy in Europe

That young man was Fred DeLuca, who with the advice and a modest loan of US$1,000 from a family friend opened a small sandwich shop in Bridgeport, Connecticut, USA. That humble storefront operation eventually grew to become the largest restaurant chain in North America with an ever-increasing global audience being served at more than 23,000 locations in 82 countries. Today, the development pace for Subway restaurants is at full speed. By the end of last year, the chain added 2,485 new locations, including 1,620 grand openings in the US and 865 throughout the rest of the world. The great taste of Subway sandwiches landed in several new countries as the submarine sandwich franchise firmly established a beachhead with its first locations in Anguilla, Chile, Grenada, Guadeloupe, Hungary, St. Kitts & Nevis and St. Martin. Reflecting the huge growth potential of the brand in European markets, the Subway chain has just announced the opened of its 400th location in the United Kingdom and its 200th unit in Germany. Doubling the number of open and operating locations in 12 months in the United Kingdom and 10 months in Germany, these nations are the internationally renowned submarine sandwich franchise's first and second largest markets in the region. Estimates that its goal of opening another 1,600 locations in the UK and having a total of 30,000 restaurants worldwide, including 4,000 locations in Europe by 2010 are right on track. In fact, an average of 15 new Subway restaurants opened in the UK each month throughout 2004.

"Subway has made great progress in our 2004-2005 growth plans in Europe," said Mike Charest, Subway's Marketing & Profitability Manager for the European region. "We've recently crossed the 200 store mark in Germany and continue to attract top quality franchisees from all around Europe.

"The UK and Germany continue to lead the way in European growth and development. Also on top of our agenda is aggressive growth in Spain and France, followed by further expansion into Sweden, Norway, Finland, the Netherlands and Italy."

Germany is one of the fastest growing markets for the Subway chain. The chain's first restaurant opened there in June of 1999. Another 50 units were added within two years. In July of 2004, the country celebrated the opening of its 100th Subway franchise. Doubling the number of locations once again, the opening of number 200 comes less than a year later.

"The Subway concept of serving fresh-made sandwiches, on fresh baked bread, made right in front of you, the way you like it has proven to be a winning strategy in Europe," reflects Charest. "Our customers have really responded to the high level of service that Subway restaurants are famous for. We have also become popular with health-conscious consumers in Europe who are searching for higher quality fast-food options.

"Subway's low initial investment and ability to fit into unusual spaces are other reasons for our success. Without the need for heavy equipment or cooking, a Subway restaurant is the perfect business for the small spaces and tight real estate of Europe. Our regional office makes the franchise start-up process simple and easy. Europe is currently wide-open for development. As our brand awareness grows in Europe, more and more people are becoming aware of Subway as a great-tasting lunch option and also as a great way to start their own business within their community."