Subway opens first local outlet, plans 40 more over next four years

The first Romanian Subway franchise was opened last week in Bucharest on Nicolae Titulescu Blvd, close toVictoriei Square. The store is owned by local entrepreneur Cristian Stefanescu. Over the next four years, the US-based fast-food chain plans to set up about 40 new locations on the local market, in Bucharest and countrywide.

Subway has already signed franchise agreements with another 20 local entrepreneurs. “They have to pass the training, find a location, which must be approved by Subway, and sign the contract,” Rumen Radev, the development agent for Subway in Romania, told BR, stressing that future expansion plans depend a lot on finding the right locations. Subway restaurants require a minimum initial investment of EUR 100,000 and cover on average between 120 and 170 sqm for street locations and between 40 and 50 sqm for restaurants inside shopping malls.

Stefanescu said he had invested between EUR 100,000 and EUR 200,000 in setting up the restaurant, without disclosing the exact figure. The investment came from personal funds as well as a bank loan. The businessman applied for the franchise last summer after assisting with a Subway franchise presentation inBucharest. After submitting a business plan for the restaurant he went for an interview inBulgaria(e.n. where the Subway development agent forRomaniaandBulgariais located). Before signing the contract, Stefanescu also underwent a two-week turning program inMilford,Connecticut.

The franchise tax costs EUR 7,500 and royalties amount to 8 percent of weekly gross sales. Another 4.5 percent goes on advertising.

The 32-year-old entrepreneur has previously worked for Piraeus Bank as corporate team leader and also runs an online toy store. He wants to open further Subway locations inBucharestbut a lot depends on the results of this first outlet.

So far, two more Subway restaurants have been confirmed inIasiand Cluj.

The Subway brand is famous for its made-to-order sandwiches and salads. Local prices are between RON 8 and RON 9 (for a 15 cm sandwich). For another RON 5 diners can purchase the 30 cm version of the same sandwich. The store also sells 46, 92 and 184 cm sandwiches, salads and desserts.

The first Subway restaurant was opened in 1965 in theUS. There are now over 36,500 outlets worldwide, making the company the largest restaurant franchise in the world.Romaniais the 100th country where the chain has established operations.

Simona Bazavan