Riyadh – Mubasher: Fawaz Abdulaziz Al Hokair Company (Cenomi Retail) opened 12 new Subway branches across Saudi Arabia in a single day, setting a new world record for the number of openings.
This strategic move caters to a range of consumer segments in addition to backing the company’s cost optimisation objectives, according to a press release.
The branches are located in Riyadh and Dammam, including a combination of four traditional restaurants in high footfall prime areas, two non-traditional branches in corporate offices, and six cloud kitchens.
The contribution from the new restaurants will flow through starting from the fourth quarter (Q4) of 2024 onwards, adding an estimated SAR 13 million of revenue annually.
Besides using the latest industry technology and reducing the overall capex requirements, the strategy will result in an accelerated payback period of less than two and a half years, which is lower than the industry average of three years.
Salim Fakhouri, CEO of Cenomi Retail, commented: “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,” Fakhouri added.
Having opened 31 stores so far, Cenomi Retail and its sub-franchise target 50 new food and beverage (F&B) store openings by year-end.
In the first half (H1) of 2024, the Tadawul-listed firm shifted to net losses valued at SAR 67.60 million, versus net profits worth SAR 113.80 million in H1-23.
