Firehouse Subs is making a big push into Mexico.
The fast-food sandwich chain on Tuesday announced a deal with the Mexican restaurant operator Foodplay to develop 100 locations over the next five years. The restaurants will be developed in Monterrey and other major cities.
The announcement is a key one for Firehouse, which operates more than 1,300 locations, the bulk of which are in the U.S. But it is starting to generate real momentum internationally, with a series of development agreements about to yield major growth in multiple countries.
The company expects to open its first restaurants in Brazil and Australia later this year. Firehouse already operates locations in Mexico, along with Canada, Switzerland, Albania and the United Arab Emirates. Firehouse itself is launching the Brazilian market.
International growth is key for Firehouse and parent Restaurant Brands International (RBI), which spent $1 billion to buy the sandwich chain in 2021. RBI viewed Firehouse as a brand that could thrive outside the U.S.
“The value here will really come from ramping up development,” Patrick Doyle, executive chairman of RBI, told analysts in February.
Firehouse operated 49 locations outside the U.S. in 2021 when RBI bought the brand. That is up to 138 today, up 182%, according to data from Restaurant Business sister company Technomic. International system sales have more than doubled over that time.
The international growth could take at least some of the sting off from what has been a tough market domestically. Firehouse Subs’ U.S. sales grew just 0.7% last year, even though the chain opened 38 new restaurants.
Firehouse clearly views Mexico as a key market. “We believe Firehouse Subs has tremendous potential in Mexico’s growing sandwich market,” Duncan Montero, LAC president for RBI, said in a statement.
Foodplay will open the first Firehouse Subs location in Monterrey later this year.
Firehouse Subs is hardly the only major U.S. chain looking to Mexico for growth. The fast-casual burrito chain Chipotle announced a deal to expand there, a risky venture for a U.S.-based Mexican concept.
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