Subway sandwich shops in Jewish community centers, churches and hospitals? Setting up shop in any nook and cranny it can find has helped Subway surpass McDonald's Corp. (MCD) as the restaurant chain with the most U.S. locations.
This strategy has them counting 20,000 U.S. outlets as compared to McDonald's at 13,700. Non-traditional locations, as mentioned above, account for 22% of the chain's outlets, up from 13% a decade ago, the company says in this WallStreetJournal.com article.
Other restaurants have tried nontraditional locations and pulled back. Yum stopped serving Taco Bell food in school cafeterias several years ago so it could focus on its conventional restaurants, a Yum spokeswoman says. McDonald's has some locations in hospitals and Wal-Marts, but the majority of its restaurants are still free-standing locations, a McDonald's spokesman says.
Subway, with a menu anchored by cold cuts, has an easier time opening in unorthodox spots because it has a simpler kitchen than traditional fast-food restaurants that require frying and grilling equipment. And Subway has edged out hamburger chains and doughnut shops at hospitals and religious facilities partly because it promotes its sandwiches as a fresher, healthier alternative to traditional fast-food. The chain is owned by closely held Doctor's Associates Inc. of Milford, Conn.
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