Subway on roll with Mobil plans

Deven Maharaj has plans to open Subway restaurants at three Mobil service station sites in Auckland. Photo / Steven McNicholl

Subway will have expanded into 19 Mobil service stations by the end of the year in a bid to generate greater sales and offer customers more options when they are on the move, the sandwich chain says.

Subway is also planning to open an additional 15 restaurants around the country this year.

The company-owned franchisee-operated chain has 232 restaurants here so far and there is still room to grow, Subway North Island development manager Mark Hawes said.

The first three Subway restaurants will be built into Mobil stations by the end of July, with three opening per month until November.

Hawes said the aggressive rollout would hopefully increase the amount of fuel Mobil was selling, as well as its other food, beverage and convenience products, while generating good returns for Subway franchisees.

Mobil will also receive rent payments from the franchisees which would lead to greater profits for the company, Hawes added.

"We see this as an opportunity. The customer base will grow. Around the world convenience stores [at service stations] increase the number of customers. We weren't there and that's where we needed to be."

Hawes said there were certain core business rules that all franchisees across the world had to follow, this includes offering staple menu options such as the famed BMT - salami, pepperoni and ham - ham and beef sandwiches.

But the local market has to have the ability to tailor parts of its menu to more New Zealand tastes such as the Chicken Sensation that was recently launched.

All marketing, branding, advertising and pricing is Subway-controlled.

"If the franchisees are successful then we are too and continue to improve," Hawes said.

This year it was reported that Subway had 1012 more restaurants than McDonald's - although McDonald's still generates more revenue.

Hawes said that founder Fred DeLuca regularly left messages of support for the New Zealand Subway team, and was concerned for staff safety when six restaurants were closed in Christchurch after February's earthquake.

Mark Rutherglen opened the first New Zealand franchise in Parnell in 1995. The franchise model has rapidly expanded since then.

Deven Maharaj is one of the franchisees who will be opening on Mobil sites. He will be opening in K-Rd, Mt Albert and Balmoral.

Maharaj already owns the Subways in Auckland Hospital, Grafton, St Lukes (Westfield), Kingsland and the two on Dominion Rd.