Subway’s average monthly sales reach ¥6.3 million as existing franchisees drive expansion in Japan

Sales growth and additional openings by existing franchisees are key features of Subway’s expansion in Japan. According to the 28 September 2026 issue of Business Chance, average monthly sales per store across the network rose from ¥5.7 million to ¥6.3 million. Existing franchisees also accounted for 22 of the 37 new stores opened in 2025. With nearly two years having passed since Watami announced its acquisition of Subway’s Japanese business, operating performance and further investment by franchisees offer important evidence for those assessing the franchise opportunity in Japan.

Sales figures improve nearly two years after the acquisition announcement

In October 2024, Watami announced the acquisition of Subway’s Japanese business and the master franchise rights for Japan. The latest report features an interview with Chairman Watanabe about the company’s work as Subway’s franchisor, almost two years after that announcement.

According to the article, average monthly sales per store across the network had increased from ¥5.7 million to ¥6.3 million by June 2026 — a rise of ¥600,000 a month. At the time the magazine was published, same-store sales had also exceeded their year-earlier levels for 70 consecutive months.

These two measures need to be read separately. Average monthly sales indicate the sales level per store, while year-on-year same-store sales track performance at outlets that continue to trade. An increase in average monthly sales does not mean that every franchise outlet achieved the same growth.

The 70-month run also extends well beyond the roughly two years since Watami’s acquisition announcement. It would therefore be inappropriate to attribute the entire record to measures introduced after the acquisition. Understanding this news requires a distinction between sales trends that began before the acquisition and subsequent changes to the operating structure.

Existing franchisees opened 22 of the 37 new stores

Additional openings by existing franchisees stand out in Subway’s expansion. At the time of the report, the network had 107 franchisees. Existing franchisees opened 22 of the 37 new stores in 2025, accounting for more than half of that year’s openings.

When assessing a franchise network’s expansion, it is important to consider not only recruitment of new franchisees but also further openings by those already operating stores. These figures show that existing franchisees are playing a substantial role in Subway’s growth in Japan.

However, store opening numbers alone do not reveal the profitability or investment payback position of every franchisee who expanded. The reported figure of 22 stores is simply a record of openings by existing franchisees. It does not explain their reasons for expanding, staffing arrangements or financing terms.

Prospective franchisees can use this track record to frame specific questions for the franchisor. These might cover training store managers for a multi-unit business, management arrangements across existing and new stores, and the criteria used to decide whether to open another outlet. Actual expansion activity provides a useful starting point for understanding what operating the franchise could involve over time.

Assess new company-owned store sales separately from franchisee finances

The article also reports that newly opened company-owned stores achieve average monthly sales of ¥8 million–¥9 million. This is above the network-wide average of ¥6.3 million, but the figure applies only to newly opened company-owned outlets.

The network-wide average and the average for new company-owned stores do not measure the same group of outlets. The source material does not provide detailed information on their respective locations, floor areas or trading periods. Performance at new company-owned stores should therefore not be used directly as a sales forecast for a new franchise outlet.

Monthly sales are not profit, either. A franchise investment decision requires an assessment of income and expenditure, including food costs, labour, rent and contractual fees. The reported sales figures alone do not establish operating profit or the time needed to recover the initial investment.

For those involved in Japan’s franchise market, sharing strong results and making clear what those results actually measure are equally important. When discussing performance with the franchisor, compare like with like: company-owned stores with company-owned stores, franchised outlets with franchised outlets, and established stores with established stores rather than new openings. This will make it easier to assess the opportunity in relation to a proposed site.

Separate the 3,000-store plan from current performance

The article also notes that the company president has spoken of revising the original 3,000-store plan. However, the source material provides neither a revised store target nor a timetable. No new expansion target can therefore be stated with certainty at this stage.

What the report does establish is recent performance: higher average monthly sales across the network, year-on-year same-store sales growth and additional openings by existing franchisees. Looking beyond headline store-count ambitions to current operations and the franchisees driving openings gives a more concrete picture of Subway’s expansion in Japan.

The source is an interview about Subway in the 28 September 2026 issue of Business Chance. The ¥6.3 million average monthly sales figure relates to June 2026; the 70 consecutive months of year-on-year growth is measured at publication; and the 37 new openings, including 22 by existing franchisees, are figures for 2025. The reporting periods therefore differ.

The practical takeaway is to use the growth record as a starting point for franchise discussions, while assessing individual store finances separately. If you are considering joining the network or opening another outlet, ask the franchisor for sales and cost figures from stores in locations comparable to your proposed site, along with details of the support available for multi-unit operations.