Franchise news

28.10.2005

Subway looking to overtake McDonald's in Germany by 2010

Subway Sandwiches, according to the Entrepreneur Magazine the No. 1 franchisor, is close to opening up its 300th restaurant in Germany and is stepping up its search for new franchise partners. Last year, Subway grew by 114 percent. The company has said that its target is to have set up around 1,500 restaurants by 2010 and so overtake the fast-food giant, McDonald´s, in Germany.

The Subway principle: sandwiches, made from five different kinds of bread rolls which are baked at the branches themselves, are prepared fresh in front of the customers according to their wishes. Around 70 percent of the new franchise licences are granted to partners who are already working within the system. Those people interested in becoming a Subway franchise partner must be prepared to invest at least 80,000 euros, 25 percent of which must be personal capital. Subway provides its partners with support in areas such as looking for a suitable location, interior design of the restaurants and accounting. It also has specialists available to provide advice and trains new staff.

The world’s first Subway restaurant was opened up by Fred DeLuca in Bridgeport/Connecticut in 1965 and was run under the name “Super Submarines”. Nine years later, he already had a chain of 15 restaurants and the business was turned into a franchise system.

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