Subway charts Malaysian growth

Sandwich restaurant chain Subway is expanding its Malaysia network, with a target of eight new outlets set for the end of the year. The US company is represented in the country by development agent Cynthia Cheong, who has already opened four outlets in the Klang Valley.

"We want to focus on the Klang Valley, which still offers a huge potential for expansion, to ensure a better visibility for Subway here," says Cheong. "Penang is the next location outside of the Klang Valley that we want to develop. Then, we will consider other parts of Malaysia.

"We are not in direct competition with other sandwich or fast-food chains because we use different types of ingredients and we bake our own bread. Besides, the sandwiches are prepared fresh and customers get to choose their own ingredients."

Once the network enters double figures, Subway Malaysia will commence radio and newspaper advertising to boost its marketing presence. Cheong identifys its target market as mostly working professionals, plus families and college students. "The start-up cost is from RM250,000, including the franchise fee of US$10,000," she reveals. "The size of an outlet could be between 500 and 1,000sqft."

Subway operates in 83 countries, with over 25,000 outlets worldwide.