The first Romanian Subway franchise was opened today in Bucharest on the Nicolae Titulescu Blvd, close to Victoriei Square. The store is owned by local entrepreneur Cristian Stefanescu. Over the next four years, the US based fast-food chain plans to open 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 an 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 located inside shopping malls.

Stefanescu said he invested between EUR 100,000 and EUR 200,000 in the restaurant, without disclosing the actual figure. The investment came from personal funds as well as a bank loan. The franchise tax costs EUR 7,500 and the royalty amounts to 8 percent of weekly gross sales. Another 4.5 percent goes for advertising.

The 32 years old entrepreneur has previously worked for Piraeus Bank as corporate team leader and he also runs an online toys store.

So far, two more Subway restaurants have been confirmed in Iasi and Cluj.

Subway sandwiches are priced between RON 8 and RON 9 (for a 15 cm sandwich). For another RON 5 one can purchase the 30 cm version of the same sandwich. The store also sells 46, 92 and 184 cm sandwiches, salads and deserts.

The first Subway restaurant was opened in 1965 in the US. There are over 36,500 Subway restaurants worldwide at present, making the company the largest restaurant franchise in the world. Romania was the 100th country where Subway has established operations.

Business Review