Subway, continuing its growth push in international markets, on Tuesday announced that it has reached an agreement with McWin Capital Partners to take over management of the brand in parts of Europe.
McWin, a major investor in the foodservice business in Europe, will assume responsibility for 400 restaurants in France, the Czech Republic, Luxembourg and Belgium. It also reached new master franchise agreements in each of those countries to develop another 600 locations over the next decade.
The move is expected to more than double Subway’s footprint in France and Luxembourg and significantly increase the brand’s presence in the other countries.
The deal also represents another major agreement as Subway rebuilds its international development pipeline.
As other major brands flourished overseas, Subway struggled in the years leading up to the pandemic. The chain closed about 2,000 international units between 2018 and 2022, a major factor in Subway losing its status as the world’s largest restaurant chain by unit count.
It is now No. 3, behind McDonald’s and Starbucks. Subway operates just under 37,000 units worldwide.
The company under CEO John Chidsey has restarted international unit growth over the past two years, thanks to a series of master franchise agreements in key markets. The latest agreement “will mark another significant milestone in Subway’s plans to strategically expand its international presence and allow us to accelerate development in a key region,” Subway Chief Development Officer Mike Kehoe said in a statement.
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