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<a href="https://1851franchise.com/subways-tuna-fish-sandwich-is-not-tuna-and-not-fish-lawsuit-claims-2714881">Tuna-gate</a> aside, 2021 was a great year for <a href="https://www.subway.com/en-US/OwnAFranchise?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-subways-record-breaking-year-means-for-franchising-2718084" target="_blank" rel="nofollow">Subway</a>.&nbsp;The world's largest sandwich chain — and the second-largest franchise brand — recently <a href="https://www.qsrmagazine.com/fast-food/subway-breaks-sales-and-development-records-2021?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-subways-record-breaking-year-means-for-franchising-2718084" target="_blank" rel="nofollow">announced</a> that it beat 2021 sales projections by nearly $1.4 billion and reached its highest annual AUV since 2014. Despite the ongoing challenges of the COVID-19 pandemic, including <a href="https://1851franchise.com/supply-chain-crisis-should-franchise-brands-turn-to-hoarding-2717359">supply chain issues</a>, <a href="https://1851franchise.com/what-the-vaccine-mandate-entails-for-fast-food-franchises-2717059">safety restrictions</a> and <a href="https://1851franchise.com/omicrons-spread-perpetuates-restaurant-labor-shortages-supply-chain-issues-2717672">labor shortages</a>, Subway’s success shows the industry at large may be well on its way to achieving — and surpassing — pre-pandemic levels.&nbsp;A massive 16,000 Subway locations experienced a 7.5% rise in same-store sales compared to 2019. Overall, the system saw an 8.7% increase in domestic same-store sales versus December 2019.&nbsp;Still, that recent AUV improvement could also be influenced by store closures. The brand closed 1,000 locations in 2021, most of which had lower unit volumes, which may have heightened the entire system average.&nbsp;But those closures don’t mean the chain hasn’t seen any development momentum, particularly internationally. Last year, Subway signed major development deals in India, Indonesia, Kuwait, Saudi Arabia, the United Arab Emirates and Thailand that will result in more than 3,000 future restaurants, <a href="https://www.qsrmagazine.com/fast-food/subway-breaks-sales-and-development-records-2021?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-subways-record-breaking-year-means-for-franchising-2718084" target="_blank" rel="nofollow">according to QSR</a>. In November, the brand announced one of the "largest master franchise agreements in quick-service restaurant history” — an agreement with private equity firm Everstone Group to open more than <a href="https://www.qsrmagazine.com/fast-food/subway-inks-one-biggest-franchise-agreements-history?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-subways-record-breaking-year-means-for-franchising-2718084" target="_blank" rel="nofollow">2,000 units</a> across South Asia over the next decade.Subway points to several factors that may have aided in its recent success. For one, the brand rolled out its largest menu update ever with <a href="https://www.qsrmagazine.com/exclusives/subway-unveils-biggest-menu-update-brand-history?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-subways-record-breaking-year-means-for-franchising-2718084" target="_blank" rel="nofollow">July's launch of "Eat Fresh Refresh</a>,” introducing 11 new and improved ingredients, six new or returning sandwiches, and four revamped signature sandwiches. The brand also <a href="https://www.qsrmagazine.com/outside-insights/story-behind-subways-historic-menu-refresh?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-subways-record-breaking-year-means-for-franchising-2718084" target="_blank" rel="nofollow">upgraded its mobile app</a> to include a new dashboard, fewer clicks, and insight into out-of-stock items.&nbsp;Subway also partnered with DoorDash to launch delivery through its website and app, emphasizing the growing importance of having a <a href="https://1851franchise.com/third-party-delivery-apps-continue-to-take-over-the-game-2710464">robust delivery platform</a> amid changing consumer behavior. Third-party delivery market revenue has increased <a href="https://www.businessofapps.com/data/food-delivery-app-market/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-subways-record-breaking-year-means-for-franchising-2718084" target="_blank" rel="nofollow">204% in the past five years</a>, and the COVID-19 pandemic has only accelerated that trend."Subway’s 2021 sales results indicate we have the right team and strategy to bring our multi-year transformation journey to life," CEO John Chidsey said in a statement. "As we continue to evolve and build a better Subway, our priority remains working closely with our network of dedicated franchisees to help them grow their business and deliver a better food and better guest experience.”Subway isn’t the only franchise brand that exceeded expectations in 2021. Yum! Brands, the franchisor behind legacy concepts like KFC, Pizza Hut and Taco Bell, reported same-store sales growth for all of its concepts, both globally and in the U.S., and also broke a <a href="https://1851franchise.com/yum-brands-broke-a-franchising-record-last-year---heres-what-it-could-mean-for-the-industry-2717996">franchise industry record</a> with a whopping 4,200 new restaurants opened last year.Although both franchisees and franchisors are continuing to navigate a tumultuous restaurant industry, Subways’ sales growth suggests post-pandemic recovery is potentially on the horizon. According to a newly released <a href="https://restaurant.org/research-and-media/media/press-releases/association-releases-2022-state-of-the-restaurant-industry-report/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-subways-record-breaking-year-means-for-franchising-2718084" target="_blank" rel="nofollow">State of the Restaurant Industry</a> report from the National Restaurant Association, industry sales are expected to increase 12.4% in 2022, reaching $898 billion. The size of the workforce in the foodservice industry is also expected to grow in 2022, with an estimated addition of approximately 400,000 jobs.Related articles:&nbsp;<ul><li><a href="https://1851franchise.com/restaurants-reduce-operating-hours-due-to-staffing-shortages-2717775#industry-spotlight">Restaurants Reduce Operating Hours Due to Staffing Shortages</a></li><li><a href="https://1851franchise.com/december-restaurant-sales-slip-with-omicron-variant-and-inflation-to-blame-2717802#industry-spotlight">December Restaurant Sales Slip With Omicron Variant and Inflation to Blame</a></li><li><a href="https://1851franchise.com/restaurants-increase-menu-prices-due-to-inflation-2717700#industry-spotlight">Restaurants Increase Menu Prices Due to Inflation</a></li></ul>

What Subway’s Record-Breaking Year Means for Franchising

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Like many other of the biggest franchise systems, 2021 proved to be a major turnaround year for the world’s largest sandwich brand and suggests a bright future ahead for the restaurant industry.  

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