Franchising

Subway inks master agreement for Malaysia

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May 10, 2022

Subway has signed a master agreement with Pegacorn Sdn Bhd to significantly expand the brand's footprint in West Malaysia. This partnership is the third of its kind for Subway in Southeast Asia, following recent master franchise agreements in Indonesia and Thailand, and will increase the total future restaurant commitment in the region, according to a press release.

Under this agreement, Pegacorn will open approximately 500 new Subway locations across Peninsular Malaysia over the next 10 years, tripling the number of Subway restaurants in the market and steadily increasing the annual restaurant count.

"The Asia Pacific and the Southeast Asia markets continue to be a huge opportunity of growth for Subway and an essential part of our international growth strategy," John Chidsey, chief executive officer of Subway, said in the release. "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."

Under Pegacorn's stewardship, guests can expect to see an increase of Subway non-traditional locations across Malaysia, such as in airports, hospitals, petrol stations and convenience stores. In addition, new — as well as updated existing restaurants — will feature Subway's modern "Fresh Forward" design and enhance convenience for the consumer with new drive-throughs and Grab & Go options.

"We are excited about the opportunity to lead the growth of Subway in West Malaysia and increase international awareness of the brand," Kin Siong Kon, chief executive officer of Pegacorn, said in the release. "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."

Subway operates 37,000 restaurants in more than 100 countries.