CHICAGO, IL – By year's end, Subway will become the world's largest fast-food chain in terms of locations, Advertising Age reports.
Subway Development Director Don Fertman said that the distinction reflects the importance of convenience as well as the chain's fresh alternatives and customization.
"Our customer wants quality products, not pure convenience and customization, more or less vegetables on the sandwich, cucumbers or no peppers, made exactly the way the customer wants it," Fertman said. "And there aren't a lot of folks that do that on fresh-baked bread."
Currently, Subway has 31,771 locations, compared to McDonald's with 32,158. However, no matter when Subway becomes the number one store unit leader, it will lag far behind McDonald's in terms of overall sales.
“You need about five or six Subways to equal one McDonald's in terms of sales,” said Dennis Lombardi, executive vice president of food service at WD Partners. The average U.S. McDonald's realized $2.3 million in sales per store last year; the average Subway generated $445,000, according to Technomic.
Fertman said that while he doesn't expect Subway to use the milestone in any formal marketing effort, it will help the company build its franchise system even further.
Last year's key growth driver for Subway was the company's $5 foot-long promotion that led to double-digit same-store sales gains in the U.S.
The company's next goal is to crack the breakfast market, whose implementation is currently undergoing marketplace tests.
“You've got to take your hat off to Subway," said UBS analyst David Palmer. "They've . . . redefined value at the $5 price point and created a barrier for other fast-food players that's painful to get above."