Report: Subway may pursue a sale.
MILFORD, CONN. The Wall Street Journal reports that the company that owns the fast-food franchise Subway, Doctor’s Associates, Inc., may be considering selling the company. Although the process is still in its early phases, the company may be worth over $10 billion.
Subway replied in a statement to the newspaper that it did not comment on business goals or ownership structures. As far as fast-food chains go, the corporation is among the biggest in the world with 37,000 locations across 100 countries.
The announcement of the news comes almost eight months after Subway unveiled an updated business plan that aimed to change the company’s focus from development to experience. The plan’s top goals were to maximize the brand’s footprint in order to position it for future expansion, invest in restaurant modernization, and increase the number of franchisees under Subway’s umbrella.
One of the first actions the fast-food giant did was to make sure all of its restaurants—including drive-thrus and non-traditional sites—were in the best possible formats and locations to offer value, convenience, and accessibility.
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A remodelling investment came in second. In May 2022, Subway announced that around 9,000 of its US stores have committed to remodeling with the brand’s modern “Fresh Forward” style. As the restaurant chain proceeded with its metamorphosis, more enhancements were to be made to the format and arrangement of sites.
The strategy’s last phase entailed raising the profile of franchisees. Subway announced that it was “actively inviting” well-funded, multi-unit franchisees to become part of the business and that it was also in talks to possibly buy out retiring or selling existing owners.
Through the 2020 launch of its Grab & Go platform, the corporation has also looked for new prospects in non-traditional venues such as casinos, hospitals, airports, and convenience stores.
In November, Taylor Bennett, vice president of non-traditional development at Subway, stated, “As more of our guests search for dining experiences to meet their ‘in-the-moment’ needs, the brand’s non-traditional locations and platforms can serve them wherever and whenever they are craving Subway.” “There is a significant opportunity to expand our footprint in non-traditional locations and for franchisees to generate additional revenue for their business as Subway focuses on strategic and profitable growth.”