Subway aims to have 500 restaurants in China in 5 years

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Date AddedMay 06, 2010 09:51:24 AM

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U.S.-based fast-food franchise Subway aims to have 500 stores in mainland China within five years and will start by adding 35 to 50 stores this year, Reuters reported yesterday.

China has great growth potential, and the company may be able to match McDonald's Corp in 10 years, if it accomplishes its 500-store target, Subway president and founder Fred DeLuca said yesterday during a visit to Shanghai.

The sandwich chain plans to focus on second-tier cities, DeLuca said, adding that it may also consider cutting prices to lure more customers.

The company may localize its menu and is researching and testing new types of sandwiches such as Beijing roast duck, said Subway's development agent in Shanghai.

Last year, Subway opened 32 new outlets in China, bringing the total number to 150. By comparison, McDonald's has more than 2,000 stores in the country, while KFC has more than 2,800.

Restaurants in China account for 0.5% of Subway's global network of 32,000 stores. Sales in China accounted for a "tiny" portion of the total, according to Reuters.