Fast food has become an intrinsic part of British culture, with statistics showing that around 20 per cent of consumers visit chains such as McDonald’s, Burger King or KFC more than twice a week. However, amidst the obesity crisis and surrounding publicity, “healthy” fast food chains such as sandwich maker Subway have found themselves capitalising on a powerful niche in the takeaway market.
Subway was founded in America in 1965 and crossed the Atlantic to set up shop in Britain and Ireland in 1994. Since then, the chain has experienced huge success worldwide but the UK and Ireland remains its second biggest market after its country of origin.
Yet Subway is reciprocal in this success, providing jobs and income to the UK – something which continued even during the recession. In fact, data from the Centre for Economics and Business Research shows that the sandwich chain contributes £875 million to the UK economy annually.
As a result of this ongoing popularity in the UK and Ireland, Subway has announced its intentions to ramp up expansion in its second largest market. It hopes to operate at least 3,000 commercial property outlets by 2020, which would mean Subway would outnumber popular rivals such as McDonald’s and Greggs significantly.
At present, Subway operates 1,731 stores and its previous expansion plan allowed for the opening of 150 new stores per year; targets easily met as demand for fresh filled sandwiches spread through UK high streets. However, the new plan will see annual store openings increase to 170 – in part thanks to the recent strong performance of the UK economy bolstering the confidence of Subway executives.
Mike Charest, Subway’s assistant regional director for Europe, believes claims consumers have responded positively to initiatives introduced by the chain in the past year or so.
“The UK and Irish markets have been fantastic success stories for the Subway brand and we see opportunities for further growth as more and more consumers demand great tasting food at a value price point.
“The introduction of a varied breakfast menu and longer opening hours have been instrumental in increasing store footfall,” he explains.
Should Subway meet its expansion targets, it could be responsible for the creation of up to 13,000 new jobs in the UK and Ireland. As many of these would be in regional areas, Subway’s growth would help boost both the economy and the employment rate of the UK significantly.
With fast food still very much on the menu for many British families, it seems almost certain that Subway will remain a cornerstone of high street retailing for years to come.
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