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Subway food chain opens fifth branch opposite Yaya Centre


American food chain Subway has expanded its footprint in the Kenyan market with a fifth store in Nairobi.

The outlet, situated opposite the Yaya Centre shopping complex, is part of the expansion plan by Subway which expects to open an additional four branches by the end of 2016.

“We are actively reviewing spaces on Mombasa Road and in Upper Hill and hope to expand there in early 2016,” said CJ Bak, director of Liberty Eagle Holdings, the Subway Kenya franchise holder.

The franchise, which opened in Nairobi two years ago, has remained localised in the capital citing high rents in other towns as a limitation to expansion plans beyond the city.

“Many landlords ask for Nairobi-level rents, but our research shows that restaurant sales are typically much lower and it’s very hard to duplicate the supply chain outside of Nairobi,” said Mr Bak.

Subway is funding the expansion through own cash reserves, though the owners say they are mulling over “partnering” with banks to speed up growth plans. The chain is following the KFC and Java trend by opening outlets outside malls and at fuel stations to lure customers who shy away from frequenting shopping complexes due to parking and security concerns.

Subway has branches on Kenyatta Avenue in the central business district, Junction Mall, Shell Petrol Station along Limuru Road, and Thika Road Mall.

Read the full story here.

SOURCE: Business Daily