Subway opening shops in karaoke parlors

May 30, 2010
By Ken Worsley

According to Friday’s Nikkei, Subway Japan opened up a small outlet inside a karaoke parlor in Ehime on Friday. Apparently the firm intends to sell sandwiches to takeaway customers as well as deliver them to rooms in the karaoke facility.

The article says that this is both “rare” and that Subway intends to set up more shops in karaoke parlors and other places where “people gather.”

It’s surprising that such a co-marketing effort has not yet been made. If done right, Subway stands to be a big winner in this endeavor. Its brand recognition in Japan is nowhere near that of the huge fast food operators such as McDonald’s, Yoshinoya, MOS Burger or Matsuya. Karaoke shops are loaded with impressionable youngsters who will be exposed to the brand. Karaoke joints are also full of drunk people, who tend to get hungry and snack.

Of course there are operational hurdles to overcome. Not every karaoke parlor is going to have a setup conductive to preparing sandwiches. Still, most have a simple kitchen facility.

It will be interesting to see if Subway pairs up with one (or more) of the larger karaoke chains and brings this idea to the big cities.

Filed Under Business, Marketing