Firehouse Subs to launch in Australia
It plans to open 15 restaurants.
US sandwich chain Firehouse Subs will launch in Australia after Retail Food Group acquired the master franchise from parent company Restaurant Brands International (RBI).
Firehouse Subs was founded in 1994 in Jacksonville, Florida, by two brothers who were former firefighters. It has 1,300 restaurants in the U.S., Canada, Switzerland, Mexico, Albania, and the United Arab Emirates. The company serves hot and cold specialty sandwiches made with premium meats, cheeses, and fresh ingredients. It often features a firefighter-themed menu and hearty portions.
Meanwhile, RBI is one of the world's largest quick-service restaurant companies with nearly US$45b in annual system-wide sales and over 32,000 restaurants in more than 120 countries and territories.
Matt Marshall, CEO of RFG said they plan to open 15 company-owned restaurants in the next three years, with the first to open in Southeast Queensland in late 2025. RFG said they will open franchising opportunities by the fourth year of operation, with plans to build 165 restaurants in 10 years.
According to the details of the deal, RFG committed to funding rapid growth by investing US$4m per year (total of US$12 million over first three years) increasing to $5m per year in years 4 to 6. RFG also agreed to a 20-year development term, inclusive of options, with the scope to exit after year 3. Meanwhile, RFG’s rights to open and franchise stores after 2027 are subject to the satisfaction of certain conditions.
RFG will fund the year-one investment through a debt drawdown of A$7.5m under its existing debt facilities. Future investment cashflows are expected to be funded from operating cashflows.
Firehouse Subs first announced its global expansion plans in June 2023.
