Subway, the US-based sandwich-shop chain, plans to open its first store in Vietnam in August and is targeting 25 shops throughout the country by 2015.
"It would be reasonable to get to profitability fairly quickly and build a good foundation" for opening stores, co- founder Fred DeLuca told journalists in Ho Chi Minh City Monday. Within a year, Subway may have three stores in Vietnam, he said.
Subway, which currently has more than 32,000 stores in 91 countries, decided to enter Vietnam after it got requests from some "excellent candidates" for franchises this year, Deluca said. The average franchise cost is $100,000 per store, he said.
With a "big country" like Vietnam, Subway wanted to make people aware of franchising opportunities, Deluca said. The population of Vietnam is 86 million, according to the General Statistics Office in Hanoi.
The Milford, Connecticut-based company will adapt its standard menu to Vietnamese tastes, according to Deluca, whose favorite "sub" is a foot-long turkey sandwich.
The sandwich maker hasn't yet decided on the prices of its products in Vietnam, said Deluca, adding that it would be at a "premium" level.
Yum's Kentucky Fried Chicken, Jollibee Foods Corp., the largest Philippine fast-food company, Lotteria and Pizza Hut currently have stores in Vietnam.