by Emmanuel Aublet · Chief Executive, retail & food service

Subway France: growing

Growing a 100% franchised network without losing control of operations

Subway France, Belgium and French-speaking Switzerland — Managing Director, November 2011 – December 2015

Context

On arrival. At the end of 2011, Subway had just under 300 restaurants in France. The brand had been present since 2001 and grew exclusively through franchising.
Network momentum. 2011 revenue reached €132.5m, up 12% like-for-like (L’Hôtellerie Restauration).
Weak points.
- The network was concentrated in city centres.
- The Belgian network was struggling.
- The remit also covered opening French-speaking Switzerland.
The challenge. Speed up openings without eroding franchisee profitability, in a quick-service market that slowed from 2012.

Eight weeks in the field. I started with eight weeks of training as a franchisee, in a restaurant, to understand the job before setting priorities.
Non-traditional locations.
- Framework agreements with Elior and Lagardère Services for the first motorway and railway-station restaurants.
- The first motorway restaurant opened in January 2013 on the A89, at Néronde (Les Echos Entrepreneurs).
Drive-through. Organised as a second restaurant within the restaurant, with its own preparation line (Snacking).
Pricing and offers. Revised first in pilot regions, then rolled out.
Management tools for franchisees.
- real-time sales tracking software;
- a customer feedback platform, “Parlez-nous de Subway”.
Beyond France. Relaunch of the Belgian network and start of operations in French-speaking Switzerland.

Network size. Doubled in France, from 275 to more than 500 restaurants.
- 107 openings in 2012, a record for the brand (L’Hôtellerie Restauration).
- The 500-restaurant mark was passed at the end of 2013.
Revenue. Around €200m; €210m in 2013 (Les Echos Entrepreneurs).
Pilot regions. The pricing and offer review delivered +3% to +7% in revenue and profitability.
New channels. First restaurants on motorways and in railway stations.
Market context. Over the same period, quick-service footfall declined, which weighed on like-for-like sales across the sector.

There is no growth without profitable franchisees. Openings are decided at head office, but a restaurant’s survival is decided in the franchisee’s P&L.
Tools must serve the franchisee before they serve reporting.
A simple concept is a growth asset. “All you need to set up a Subway is a power socket and a water point” (Le Figaro, in French). That simplicity is what opened motorways and stations.

Interview on BFM Business, Good Morning Business, 5 September 2013: the quality/quantity/price ratio as Subway’s key to success (video on Dailymotion, in French)

« Il faut savoir résister aux sirènes de l’innovation. » (Néo Restauration, in French)
Interview on the 500th restaurant (Ouest-France, December 2013, in French)