Subway with 37,000 restaurants sold - as sandwich chain confirms huge deal

24 August 2023 , 12:14

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Subway made the announcement today (Image: PA)

Sandwich chain Subway has been sold to private equity firm Roark Capital.

In an announcement made today, Subway chief executive officer John Chidsey said the deal will "help spread tens of thousands of new locations around the world". Subway confirmed it was exploring a sale of its business back in February of this year.

The price of the sale, which was advised by the investment banking giant J.P Morgan, has not been confirmed, but according to the Wall Street Journal, could have been valued at more than $10billion (£8.2billion). It marks an end of its private family ownership since its founding in 1965.

The sale of the sandwich chain will likely not impact the stores immediately as Subway operates under a franchise model. This means Subway allows an independent business owner to run an individual store using its branding, business model and intellectual property.

However, going forward, Subway said it wanted to focus on growing sales, changing its menus and modernising of restaurants. It would also be looking to grow the number of restaurants it has internationally and improve its "overall guest experience".

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John Chidsey, CEO of Subway said: "This transaction reflects Subway's long-term growth potential, and the substantial value of our brand and our franchisees around the world. Subway has a bright future with Roark, and we are committed to continuing to focus on a win-win-win approach for our franchisees, our guests and our employees."

Subway has around 37,000 restaurants across 100 different countries. This makes it one of the largest restaurant chains in the entire world. According to Subway's website, there were around 2,300 Subway locations in the UK with over 1,800 in England, 202 in Scotland, 107 in Wales and 99 in Northern Ireland. The first UK store opened in 1996 and in 2021 it celebrated its 25th anniversary in the country.

Subway is famous for its "footlong" sandwiches with some of its most popular products being its Italian B.M.T., Meatball Marinara, and Steak & Cheese subs. The chain also specialises in wraps, hot sides such as pizza subs and wedges, and salad bowls.

Ruby Flanagan