Subway is set to take over Greggs plc (LON:GRG) with its plans to expand its fast-food chain in the UK and Ireland by opening 500 new franchises by 2020.
The American sandwich maker said the move would create 5,000 new jobs and bring its total stores to 3,000 across the two nations.
That means there would be almost double the number of Subway franchises to that of its UK baked-goods rival Greggs, which has 1,698 stores.
Subway to overhaul stores and menu
Subway said it was also overhauling its stores with a new look and menu, which includes changes to its breakfast and evening options.
"We already have a breakfast menu, but it's a part of the day we need to work on," Subway's UK director Peter Dowding said.
Subway overtook McDonald’s as the world’s largest restaurant chain more than six years ago.
But Dowding said it faces competition from other food chains.
"It's everyone. It's a very competitive world out there," he said.
Subway shrugs off Brexit concerns
The group also faces the risk of being hit by weak consumer confidence as the cost of living increases due to rising inflation and weak wage growth.
Dowding said the company is yet to be affected by the Brexit-fuelled slowdown in consumer spending as it has been working with suppliers to keep prices low.
"The growth expansion has been continual. What we have achieved over the last few years has been phenomenal for the brand and for our franchisees across the UK and Ireland,” Dowding said.
"We set some very ambitious targets in 2012, where we said we would get 3,000 stores by 2020 and we are well on our way to achieving that.”