Tesco has made a further foray into the UK’s eating-out sector, investing in a new deli-diner concept called Fred’s Food Construction, which has been developed by Paul Goodale, former director of restaurants at Harrod’s, and Daniel Gestetner, founder of global frozen yoghurt brand Yoomoo.

The first site under the new concept, which promises “subs you can trust”, will open next Monday at the Tesco Extra in Osterley, west London. It is understood that Goodale and Gestetner have developed the new concept with plans to establish it across the UK. Tesco is believed to have taken a minority stake in the new venture.

The concept has described its subs as “an affordable, high-quality everyday luxury”, inspired by sandwiches found on the East Coast USA in places such as Katz’s, the oldest delicatessen in New York City, which will cater for “time-conscious office workers”.

The new offer includes a signature selection of grilled, roast and cured meats, “French Dipped” in a homemade jus and piled high on a freshly baked warm roll, or in a salad or carb-free lettuce wrap.

Tesco’s backing of Fred’s follows it investments in Giraffe, Harris & Hoole and Euphorium Bakery. The retailer said it “continues to support food, drink and hospitality entrepreneurs with innovative food concepts”.

Goodale, who is also the co-founder of the highly-rated PizzaLuxe concept, said: “Fred’s is inspired by the rich heritage and classic recipes of the American all-day deli. It will offer hungry workers and shoppers great food and service within a contemporary environment.”

Michael Holmes, chief executive of Tesco New Food Experience, said: “We know Londoners love good food, but also love to be the first to experience new and exciting food concepts, so we’re delighted to support Fred’s Food Construction in bringing delicious New York-style deli sandwiches to our customers in Osterley. Whether customers are grabbing a sub or sitting down for a leisurely lunch with friends, Fred’s provides the perfect mix of great food in a relaxed atmosphere that we think they’ll really enjoy.”

The new venture is separate from PizzaLuxe.