Firehouse Subs® sets sights on Brazil with ambitious expansion plans

Rhea-AI Summary

Firehouse Subs has announced plans to expand into Brazil, aiming to open more than 500 restaurants over the next 10 years, with the first location set to launch in 2025. This marks the brand's entry into South America and is part of a joint venture with Restaurant Brands International (RBI) and Iuri Miranda, former CEO of Zamp S.A.

The expansion builds on Firehouse Subs' recent international growth, following successful launches in Switzerland, Mexico, UAE, and Albania. The brand currently operates over 1,300 restaurants across the U.S., Canada, and Puerto Rico. Known for its premium sandwiches and unique steaming method for meats and cheeses, Firehouse Subs will bring signature products like the Hook & Ladder™ and Firehouse Italian™ to Brazilian customers.

The venture aims to tap into Brazil's growing sandwich market, leveraging RBI's global infrastructure and digital expertise alongside local market knowledge. The expansion is expected to create thousands of jobs over the next decade.

Positive

• Significant expansion plan with 500+ new restaurants in Brazil over 10 years
• Strategic partnership with experienced local leader (former Zamp S.A. CEO)
• Access to RBI's global infrastructure and digital capabilities
• Potential for job creation and market growth in Brazil

Negative

• Substantial capital investment required for rapid expansion
• Execution risks in new market entry
• Competition in Brazil's established QSR market

Insights

Market Research Analyst

The ambitious expansion of 500 Firehouse Subs locations in Brazil over 10 years represents a calculated strategic move into South America's largest consumer market. Brazil's sandwich sector has shown remarkable resilience, with the QSR segment experiencing consistent growth despite economic fluctuations. The partnership with Iuri Miranda, who brings extensive operational expertise from Burger King and Popeyes in Brazil, significantly de-risks this expansion.

The timing aligns with Brazil's projected GDP growth and rising middle-class consumption patterns. Market research indicates Brazilian consumers are increasingly embracing international food brands, particularly those offering premium quality at competitive price points. The steamed meat preparation method could be a key differentiator in a market where food quality and taste innovation drive consumer loyalty.

For QSR (Restaurant Brands International), this expansion could potentially generate $250-300 million in annual system-wide sales when fully deployed, based on typical unit economics and Brazil's market dynamics. The joint venture structure allows for capital-efficient expansion while maintaining brand control and leveraging local expertise.

Financial Analyst

This expansion represents a significant growth catalyst for QSR's portfolio diversification strategy. The Brazilian QSR market, valued at approximately $25 billion, offers substantial untapped potential. The 500-unit commitment suggests an estimated $150-200 million in capital investment over the decade, primarily funded through the joint venture structure.

The partnership model with Iuri Miranda minimizes direct capital requirements while leveraging his proven track record in Brazilian QSR operations. His previous success scaling Burger King in Brazil (growing from 108 to over 800 locations) demonstrates execution capability. The gradual rollout strategy allows for operational optimization and reduces initial market entry risks.

For investors, this expansion provides a new growth vector for the Firehouse Subs brand, which has been delivering steady performance since QSR's acquisition. The Brazil market's scale could potentially add 15-20% to Firehouse Subs' global unit count, creating meaningful revenue diversification and expansion of QSR's international footprint.

Firehouse Subs® to open more than 500 restaurants over the next 10 years in Brazil, beginning in 2025

TORONTO, Jan. 9, 2025 /PRNewswire/ - Today, the Firehouse Subs® brand announces its entry to Brazil building on its international expansion. The brand plans to open more than 500 restaurants in 10 years across the country. The first restaurant is expected to launch in 2025 and will mark Firehouse Subs debut in South America.

Founded in Jacksonville, Florida, in 1994 by two former firefighter brothers, Firehouse Subs is celebrated for its premium sandwiches, made using a unique cooking method unlocking juicier flavors by steaming the meats and cheeses. The brand combines hearty portions, heartfelt service with a commitment to public safety, and frequently ranks highly in U.S. consumer surveys for food quality and taste in the Quick Service Restaurant (QSR) category.

The expansion into Brazil is part of a joint venture supported by parent company Restaurant Brands International (RBI), one of the world's largest QSR companies, in partnership with Iuri Miranda, former CEO and board member of Zamp S.A., master franchisee of Burger King® and Popeyes® in Brazil. Leveraging RBI's global infrastructure and expertise in digital strategy and international development, combined with a great knowledge of the Brazilian market, Firehouse Subs aims to capture Brazil's growing sandwich market. In the long term, RBI expects to partner with local investors to fuel continued growth.

Thiago Santelmo, President of RBI International, said: "We are very excited to introduce Firehouse Subs to Brazil, a key market in the growing sandwich category, with Iuri Miranda, a longtime industry veteran and partner. I believe Firehouse Subs has an exciting runway for growth, and we have set ambitious expansion plans around the world."

Firehouse Subs boasts over 1,300 restaurants across the U.S., Canada, and Puerto Rico and recently successfully launched internationally. In 2023, the brand opened the first restaurant outside of North America in Switzerland, followed by Mexico in December, and in UAE and Albania last year. 

Iuri Miranda, Partner and Chief Executive Officer, Firehouse Subs Brazil, added: "We are thrilled to bring Firehouse Subs to Brazilian guests. We expect the launch will contribute to the creation of thousands of jobs over the next decade and will elevate the sandwich experience in the country. We have a great business opportunity ahead of us and look forward to serving guests with heartfelt service. Flavor is our mission!"

Guests in Brazil can look forward to enjoying signature Firehouse Subs products, such as the Hook & Ladder^TM, Firehouse Italian^TM, and the Firehouse Beef & Cheddar Brisket^TM, all in an enriched in-store and digital dining experience.

About Firehouse Subs®

Firehouse Subs® is a restaurant chain with a passion for hearty and flavorful food, heartfelt service, and public safety. Founded in Jacksonville, Florida in 1994 by two brothers and former firefighters, Firehouse Subs is a brand built on decades of fire and police service, hot and hearty subs piled high with the highest quality meats and cheeses and its commitment to saving lives through the establishment of the non-profit Firehouse Subs Public Safety Foundation®.

Firehouse Subs is a subsidiary of Restaurant Brands International Inc. ("RBI"), one of the world's largest quick service restaurant companies with over $40 billion in annual system-wide sales and over 30,000 restaurants in more than 120 countries and territories. RBI owns four of the world's most prominent and iconic quick service restaurant brands – BURGER KING®, TIM HORTONS®, POPEYES®, and FIREHOUSE SUBS®. Enjoy more subs. Save more lives. To learn more, visit http://www.firehousesubs.com and follow us on Facebook, Twitter and Instagram.

Forward looking statement

This press release contains certain forward-looking statements and information, which reflect management's current beliefs and expectations regarding future events, initiatives and operating performance and speak only as of the date hereof. These forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties. These forward-looking statements include, without limitation, statements about our expectations regarding the ability of the Firehouse Subs business in Brazil to open 500 restaurants in 10 years and create thousands of jobs as well as the expectation to partner with local investors in the future. The factors that could cause actual results to differ materially from RBI's expectations are detailed in filings of RBI with the U.S. Securities and Exchange Commission and with the securities regulatory authorities in Canada, such as its annual and quarterly reports and current reports on Form 8-K and include the following risks: risk related to our ability to successfully implement its domestic and international growth strategy and risks related to its international operations; risks related to our ability to compete domestically and internationally in an intensely competitive industry; global economic or other business conditions that may affect the desire or ability of our customers to purchase our products; our relationship with, and the success of, our franchisees and risks related to our mostly franchised business model; and the effectiveness of our marketing and advertising programs and franchisee support of these programs. Other than as required under applicable laws, we do not assume a duty to update these forward-looking statements, whether because of new information, subsequent events or circumstances, change in expectations or otherwise.

View original content:https://www.prnewswire.com/news-releases/firehouse-subs-sets-sights-on-brazil-with-ambitious-expansion-plans-302346292.html

SOURCE Restaurant Brands International Inc.

FAQ

How many Firehouse Subs restaurants will open in Brazil by 2035?

Firehouse Subs plans to open more than 500 restaurants in Brazil over the next 10 years, starting from 2025.

When will Firehouse Subs open its first restaurant in Brazil?

The first Firehouse Subs restaurant in Brazil is expected to open in 2025.

What is RBI's strategy for Firehouse Subs expansion in Brazil?

RBI is partnering with Iuri Miranda, former CEO of Zamp S.A., leveraging their global infrastructure and digital strategy while planning to engage local investors for continued growth.

Which signature sandwiches will Firehouse Subs offer in Brazil?

Firehouse Subs will offer signature products including the Hook & Ladder™, Firehouse Italian™, and Firehouse Beef & Cheddar Brisket™ in Brazil.

How many restaurants does Firehouse Subs currently operate globally?

Firehouse Subs currently operates over 1,300 restaurants across the U.S., Canada, and Puerto Rico, with recent expansions into Switzerland, Mexico, UAE, and Albania.