About Passion Co, the master franchisee of "Subway" in Thailand, looks set to boost the number of Subway restaurants in the country to 1,000 branches over the next 10 years with combined spending of 3 billion baht.
Petcharat Uthaisang, the company's chief executive, said Subway has managed to continue growing both in terms of sales and branch expansion over the last couple of years even though Thailand has had to confront the Covid-19 outbreaks that caused many businesses to stumble and grind to a halt.
"Subway didn't get any impact from Covid-19 during 2020-2021 as our products are considered to respond well to the needs of customers who changed their behaviour to pay attention to healthcare trends more than ever and also follow popular trends from various [television] series from Korea," she said, adding that About Passion also expanded Subway's branches via petrol stations and the delivery channel which currently contributes 40% to Subway's sales.
Ms Petcharat said that due to Subway's continued growth, About Passion was appointed by Subway in the US to become the firm's master franchise in Thailand from Feb 4, 2022 until 2032, with the potential to extend for another 10 years.
According to Ms Petcharat, About Passion plans to open 70-80 new restaurants per year in spaces of 50 square metres for the next 10 years. Each requires an investment of 4 million baht. The plan will boost the total number of Subway outlets to reach 1,000 in 2032, up from 142 branches as of June this year.
About Passion also plans to open drive-thru branches, and new branches based in discount stores and in the country's key cities including Chiang Mai, Phuket, Khon Kaen and Nakhon Ratchasima. This is to expand the customer base and create convenient access to Subway shops. For this year alone, the firm plans to open 72 new Subway stores, raising the total number of branches to 214 by the end of this year. Each branch creates eight new jobs.
The American brand Subway entered Thailand in 2003 through local individual franchisees. About Passion was one of its franchisees during 2019-2021.
The parent company recently adjusted its strategy to expand its business via a master franchise system and About Passion won the right to be its master franchisee for Subway in Thailand on Feb 4, 2022.
About Passion reported that Subway's sales amounted to 500 million baht in 2021. The plan is for this figure to rise to 9 billion baht in 2032.
"Subway has a lot of opportunities to grow in the Thai market, focusing on a diversity of target groups from health-conscious consumers to travellers and millennial consumers," she said, adding that with business plans, it aims to be one of the top three leading brands in Thailand's quick-service restaurant sector in 2032 in terms of store numbers and sales.
Thailand's quick-service restaurant sector is estimated to be worth 45 billion baht as of 2022.
