Subway bites into Indonesia market with Sari Sandwich tie-up

Subway partnered with Sari Sandwich Indonesia to launch Subway restaurants in Indonesia by Q4 2021, with initial locations set to open in the Greater Jakarta region. Sari Sandwich Indonesia is a subsidiary of Indonesia’s F&B retailer, Map Boga Adiperkasa (MBA) whose parent company is Mitra Adiperkasa (MAP). According to Subway, the partnership expands growth for both companies allowing it to engage Subway fans in Indonesia. 

Under this partnership, the Subway brand will be managed by Sari Sandwich Indonesia, expanding MBA's business portfolio to eight premium international brands. MBA currently has over 590 stores across 33 Indonesian cities serving brands such as Starbucks, Pizza Marzano, and Krispy Kreme, among others. Indonesia is also the first-ever market to implement Subway's exclusive country franchise model globally. Based on this model, MBA will solely spearhead Subway’s development in Indonesia with the goal of establishing strong and steady annual restaurant growth.

Subway's spokesperson told MARKETING-INTERACTIVE that it is working closely with third-party delivery partners in the lead up to its launch to engage Indonesian consumers. Subway will also be focusing on product innovation to offer new and improved ingredients, as well as flavourful menu items that complement its traditional favourites.

John Chidsey, CEO of Subway, said that the demand for Subway restaurants is unprecedented in many markets around the world, including Indonesia. “MAP is the ideal partner to kick off our expansion in the Asia Pacific region, where we know convenient, better-for-you options are in demand,” he added.

The expansion into Indonesia marks the first step in Subway's aggressive plans to expand its international footprint in the APAC region and across the world. The brand’s restaurants and sales throughout the region, in countries such as South Korea, Australia, New Zealand, Thailand and Singapore, have seen significant success in recent years and Subway expects similar results in Indonesia. Subway did not comment on MARKETING-INTERACTIVE's queries about the monetary investment of its Indonesia expansion as well as why it chose to partner with MBA. Separately, Subway is working with Mutant Communications, VaynerMedia Asia Pacific and PHD in various Southeast Asian markets. 

In December last year, the Internet was abuzz with Subway's entry into Indonesia. However, it was eventually reported by multiple media outlets that a netizen created a fake Instagram account for Subway Indonesia out of boredom. The user then posted a clarification and apology via the account's Instagram story before promptly taking down the page.

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