United States-based sandwich chain Subway plans to have 500 outlets on China's mainland within five years as it boosts its presence to tap the "growing purchasing power" in the country.

With more than 32,000 outlets in 87 countries and regions, Subway, the world's largest sandwich franchise, aims to open 40 to 50 new restaurants in China this year, adding to the 150 outlets nationwide now, said Frederick A. Deluca, president and founder of Subway, in Shanghai yesterday.

"It's nice to see the growing purchasing power in China," said Deluca. "Today there are a lot more customers in the targeted market than three years ago and we continue to see the increase."

Last year, Subway opened 32 stores in China, where growing acceptance of Western-style food, especially fast foods, became more popular. But compared with McDonald's, which has 1,100 stores, and the more than 2,800 KFC outlets in China, Subway is still new to Chinese consumers although it has spent 10 years gradually building up its brand.

Last year, the global financial crisis eroded sales in Europe but Deluca said China grew faster and has more market potential.

First-tier cities remained the top priority for Subway and it would also look at second-tier cities, Deluca noted.

One way to speed up its expansion could be to lower the franchise fee for new stores to attract investors, he said, and for local store operators to launch new offerings to cater to Chinese tastes such as roasted duck sandwiches.