Subway Set to Overtake McDonald's in number of outlets

In the next few months, Subway will become the world's largest fast-food chain in terms of locations. With 31,771 at press time and expecting to pass 31,800 this week, Subway is racing toward McDonald's 32,158 total restaurants. In overall sales, however, McDonald's is still light years ahead.

Subway Development Director Don Fertman said that the milestone reflects not only the importance of convenience, but of fresh alternatives and custom-made food. "Our customer wants quality products, not pure convenience, and [our customer also wants] customization -- more or less vegetables on the sandwich, cucumbers or no peppers --[a sandwich] made exactly the way [he or she] wants it,"he said. "And there aren't a lot of folks that do that on fresh-baked bread."

McDonald's has slowed its expansion efforts in most countries during recent years to focus instead on existing-store profitability. Spokeswoman Lisa McComb said simply, "Our focus continues to be on our customers around the world."And with Subway adding about 40 stores a week, surpassing McDonald's in terms of locations, "was inevitable,"Mr. Lombardi said.