- Expanding Subway footprint, with 10 restaurants in Riyadh and 2 restaurants in Dammam
- Strategic selection of prime locations, along with the use of cutting-edge technology
- 31 openings year to date, with a target of 50 store openings by year end
Riyadh, Saudi Arabia – Cenomi Retail, Saudi Arabia’s pioneering retail brand partner, announced the opening of 12 new Subway branches across the Kingdom, setting a new world record for the number of openings in a single day. The branches are located in Riyadh and Dammam and include a combination of four traditional restaurants in high footfall prime areas, two non-traditional branches in corporate offices and six cloud kitchens in high demand delivery zones, to cater to a range of consumer segments, whilst supporting our cost optimization strategy and providing the best customer experience.
The contribution from the new restaurants will flow through from Q4 FY24 onwards, adding an estimated SAR 13 million of revenue per year. This, combined with the use of the latest industry technology and reduced overall capex requirements, will result in an accelerated payback period of less than 2.5 years, which is lower than the industry average of 3 years.
Salim Fakhouri, CEO of Cenomi Retail, commented, “Successfully opening 12 new Subway branches in one day is an impressive world record that also underscores our strategic agenda of continuously developing our F&B footprint with Tier 1 Champion brands. By strategically positioning cloud kitchens in high-demand delivery zones and opening traditional outlets in busy, high-footfall areas, Subway can serve a wider customer base with optimal capex deployment. This dual approach not only enhances the overall customer experience but also contributes to higher sales across multiple segments.
This expansion marks a significant milestone in Subway’s broader plan to increase its presence across the Kingdom. By leveraging both traditional outlets and cutting-edge technology, Subway is catering to evolving consumer preferences, particularly the rising demand for online food delivery.
Cenomi Retail, together with its sub-franchise partners, are targeting 50 new F&B store openings by year-end, having opened 31 so far. This is aligned to its strategy of focusing on Tier 1 Champion brands to help drive the segment’s performance in 2024 and beyond. Further introductions of unique and innovative dining concepts within the Kingdom and abroad are also being reviewed, to address the rapidly evolving needs of today’s consumers.”
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About Cenomi Retail:
Cenomi Retail, formed as Fawaz A. Alhokair & Co in 1990 by Fawaz, Salman and Abdulmajeed Alhokair. The company has since become the leading franchise retailer in the KSA and the only listed business of its type in the Middle East. Since the opening of its first store in 1991, Cenomi Retail has grown considerably and now trades in over 900 stores across 326 shopping malls in 9 countries, with a retail platform operating on a total GLA of more than 326 thousand square meters. All of this is managed by a workforce numbering more than 7,000. Cenomi Retail currently represents over 55 brands, spanning womenswear, menswear, kids and baby, department stores, shoes and accessories, cosmetics in addition to operating a series of restaurants and coffee shops. For more information, please visit www.cenomiretail.com
Contact
Investor Relations Director
Sarah Moussa
Email: IR.retail@cenomi.com
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