Global commercial property sandwich chain Subway is defying the economic gloom by announcing that it will open 600 new stores in the UK and Ireland over the next three years as part of its plans for continued expansion.
The commercial property company, which currently offers a £3 lunch deal said this expansion will create 6,000 jobs and provide opportunities for a new set of individuals to run their own business as the commercial property sandwich chain operates a franchise model of business.
The franchise plans to open the new branches across the UK and Ireland by 2015, the Press Association reports.
Subway are a US company but has expanded in Europe and the UK over the past decade with some success. The company was founded in 1965 and has more than 36,000 outlets in 98 countries.
However it remains hungry for growth and believes with so many struggling commercial property shops there are good deals to be done with UK landlords.
The commercial property firm, famous for its 12-inch sandwich roll, has been condemned for selling supersize, gut-busting products that encourage obesity.
However Subway has announced that it would start displaying calorie information on its menu board and has agreed to sign a pledge with the UK Government.
Andrew Lansley, Health Secretary said: “One in six meals are now eaten outside the home and for those meals we often have no idea how many calories we are eating.
“That’s why it’s great to see that Subway have signed up to this commitment as part of the Responsibility Deal, which will help customers know the calories in their favourite foods and think about the choices they’re making.”
Lansley further added: “With Subway on board there are now 9,500 big name food outlets on the high street set to provide calorie labelling this year, which together sell over one third of all small meals and takeaways. This is a great achievement by the Responsibility Deal.”
President and co-founder of Subway, Fred DeLuca who opened his first restaurant in Connecticut, USA in 1965 expressed his desire at the opportunity to increase the chain’s share in the British fast food market.
Mr DeLuca said: “We are particularly proud of the fact that over the years the Subway brand has been able to provide entrepreneurs with business opportunities where they can open and operate their own small business and provide great food, exceptional customer service and job opportunities in their communities.”
As well as traditional high street commercial property store development, the firm sees huge potential for non-traditional settings such as convenience stores, stations, airports, hospitals and petrol stations, mirroring a strategy being persuaded by British commercial property baker Greggs, which currently trades from about 1,550 stores.
British commercial property retailers are generally struggling as shoppers’ disposable incomes are squeezed by rising prices, muted wages growth and Government severity measures.
Commercial property businesses like Subway and Greggs, with their relatively low average transaction values, have performed better than most.
DeLuca said sales at British Subway stores open over a year were up 10 per cent over the last 13 weeks.
Subway is the UK’s biggest fast-food commercial property business with more than 1,423 branches, leapfrogging McDonalds which has 1,200 outlets.
DeLuca dismissed the suggestion there was a danger the firm could reach overcapacity in Britain.
He said: “Everybody eats three times a day; it’s only a question of where they choose to eat. The longer-term trends are people eat out more often.
“When we get to 2,000 stores, we’ll have about one store for every 30,000 people (in the UK). That’s actually quite low density for us. In the U.S. and Canada we have one store for every 12,000 people.”
Meanwhile, fast food chain McDonalds has also announced that it will add at least 2,500 staff to its workforces across the UK in 2012.
