Smile Stores has launched concessions for US sandwich chain Subway in two Gloucester-based stores.
Jeremy Symonds, chief executive of Smile Stores, said initial sales suggested they were generating good levels of traffic in both stores, which opened last month.
Subway operates 942 stores in the UK and Ireland and plans to open 400 concessions in grocery outlets in the UK in the next four years.
Meanwhile, Smile plans to increase the number of stores in its new Country Market stores. Two such stores opened last year in Bruton, Somerset, and West Hill, Devon, focusing on fresh and locally sourced products.
Further stores were in the pipeline, Symonds said, and the chain was currently trying to secure a further site.
An existing Smile store could also be developed into the format, he added.