Subway has inked a new master franchise agreement with Pegacorn to open 500 new locations across Peninsular Malaysia over the next 10 years. This triples the number of Subway restaurants in the market and steadily increases the annual restaurant count.
According to Subway, this partnership is the third of its kind for the brand in Southeast Asia, following recent master franchise agreements in Indonesia and Thailand, and will significantly increase the total future restaurant commitment in the region. Pegacorn has been a partner to Subway in Malaysia since 2019.
There will be an increase of Subway non-traditional locations across Malaysia, such as airports, hospitals, petrol stations, and convenience stores. New and updated existing restaurants will feature Subway’s modern “Fresh Forward” design and enhance convenience for the consumer with drive-throughts and “Grab & Go” options.
The agreement with Pegacorn is part of Subway’s multi-year transformation journey to build a better Subway and improve across all aspects of the brand as the business expands its presence globally. Subway plans to double its current network of restaurants in APAC from about 3,300 today to over 6,000 in the next five years.
Subway CEO John Chidsey said the APAC and SEA markets continue to be a huge opportunity of growth for Subway and an essential part of its international growth strategy. “Pegacorn has proven to be a well-resourced, strategic and successful local operator that has the local insight and experience needed to expand Subway’s presence in Malaysia,” he added.
Meanwhile, Pegacorn CEO, Kin Siong Kon, said: “We have seen increased demand from guests in Malaysia for Subway’s craveable sandwiches, wraps and salads and are committed to growing the business to make Subway even more accessible to communities across the country.”
The team in Malaysia introduced a new mascot named Sabweh alongside its Ramadan campaign in March. Sabweh debuted on limited-edition Raya packets and was the brainchild of social media artist Ernest Ng, known for his “Don’t like that la bro” comic series.
Hang Ee Laine, head of marketing, Subway, Southeast Asia, said previously that the partnership with Ng is a key milestone for the brand in its efforts to bring Subway closer to Malaysians. Meanwhile, its spokesperson also told A+M then that Ng had previously designed the Sabweh character for one of his comics and the character was very popular with Malaysians. Subway felt that the art piece deserved a bigger stage and engaged Ng to create a series of limited-edition Raya-themed versions of Sabweh.
Across the border, Costa Coffee reentered Singapore through a partnership with Subway after a three-year hiatus. This adds on to Subway’s breakfast options and alignts with its campaign #Talkofthemorning, which aims to encourage Singaporeans to lean into their love of coffee and breakfast as a driver of meaningful connections with one another.