America’s biggest fast food company Subway is in talks with Somerfield about putting its sandwich offer in 100 stores.
Area regional manager UK and Ireland Kevin Graham said the company was in “advanced discussions” with the retailer.
The two players began talks to put the concept into motorway service outlets following Somerfield’s debut motorway store on the M65 in March.
However, Somerfield has since identified 180 units that could carry the operation. Graham said about 100 of these suited Subway’s requirements.
Subway, which has global sales of £7bn from 21,500 stores, is also speaking to Spar central office about rolling out its franchise operation into more stores following successful trials at six stores in Northern Ireland run by Andrew Millar, the retail arm of Spar wholesaler John Henderson.
“We are dealing at a corporate level and believe there are about 400 sites that suit our operation,” said Graham.
The sandwich chain is also in final negotiations with The Channel Islands Wholesale Company, which has the Spar wholesale franchise for all the Channel Islands. Subway will put two stores in Spar outlets in St Helier in Jersey.
The company is also continuing talks with Costcutter.
Subway co-founder and
president Fred DeLuca said he expected to have more than 500 stores in the UK by mid next year, up from 300 at the moment. The UK is Subway’s largest
market in Europe, with turnover of £150m. By 2010 Subway expects to have 2,000 outlets on these shores.
The chain recently overtook McDonald’s in the US to become the biggest fast food firm in terms of store numbers.
DeLuca said the attraction to convenience operators was its simplicity. “There is no cooking, everything is made to order and it can be run on one employee,” he said.
In the US, Subway has just completed a deal to rent space in Wal-Mart. The first outlet was under construction. “We have taken over existing spaces run by Wal-Mart. For years it has struggled with its foodservice outlets,” said DeLuca, “so last year it decided to get in brands to operate its food.”
He added that he hoped this would open up opportunities in multiple grocers in the UK.
Siân Harrington
Area regional manager UK and Ireland Kevin Graham said the company was in “advanced discussions” with the retailer.
The two players began talks to put the concept into motorway service outlets following Somerfield’s debut motorway store on the M65 in March.
However, Somerfield has since identified 180 units that could carry the operation. Graham said about 100 of these suited Subway’s requirements.
Subway, which has global sales of £7bn from 21,500 stores, is also speaking to Spar central office about rolling out its franchise operation into more stores following successful trials at six stores in Northern Ireland run by Andrew Millar, the retail arm of Spar wholesaler John Henderson.
“We are dealing at a corporate level and believe there are about 400 sites that suit our operation,” said Graham.
The sandwich chain is also in final negotiations with The Channel Islands Wholesale Company, which has the Spar wholesale franchise for all the Channel Islands. Subway will put two stores in Spar outlets in St Helier in Jersey.
The company is also continuing talks with Costcutter.
Subway co-founder and
president Fred DeLuca said he expected to have more than 500 stores in the UK by mid next year, up from 300 at the moment. The UK is Subway’s largest
market in Europe, with turnover of £150m. By 2010 Subway expects to have 2,000 outlets on these shores.
The chain recently overtook McDonald’s in the US to become the biggest fast food firm in terms of store numbers.
DeLuca said the attraction to convenience operators was its simplicity. “There is no cooking, everything is made to order and it can be run on one employee,” he said.
In the US, Subway has just completed a deal to rent space in Wal-Mart. The first outlet was under construction. “We have taken over existing spaces run by Wal-Mart. For years it has struggled with its foodservice outlets,” said DeLuca, “so last year it decided to get in brands to operate its food.”
He added that he hoped this would open up opportunities in multiple grocers in the UK.
Siân Harrington
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