Charles Esther
For the first time in two decades, Subway’s U.S. restaurant count has fallen below the 20,000 mark.
New franchise disclosure documents reveal that the sandwich chain closed 631 stores across the country in 2024 alone.
As of now, Subway operates 19,502 locations nationwide.
Despite this significant decline, Subway still holds the title of the largest restaurant chain in the U.S. by unit count.
A Strategy Shift Behind the Closures
In a statement to CNN, Subway claimed the closures were part of a larger strategic overhaul.
The company is evaluating its U.S. footprint using a “strategic, data-driven approach” focused on ensuring each store is in the right location, has the proper format, and is operated by qualified franchisees.
Subway noted that it is not only closing locations but also opening new ones and relocating others.
This approach is aimed at maintaining a consistent and improved guest experience across all locations.
From Peak Expansion to Overcrowding and Legal Woes
Subway once boasted more than 27,000 U.S. stores in 2015.
However, its aggressive expansion strategy quickly backfired.
Many franchisees reported internal competition as Subway approved too many locations in close proximity.
This oversaturation hurt sales and store performance, leading to a wave of closures starting in 2016.
The company’s image also suffered due to high-profile controversies.
In 2015, Jared Fogle — Subway’s longtime spokesperson — was convicted of sex crimes involving minors and sentenced to nearly 16 years in prison.
In 2021, Subway faced a class-action lawsuit alleging its tuna wasn’t made from real tuna.
Although the case was dismissed in 2023, the damage to public perception lingered.
Global Expansion Brings a Silver Lining
While Subway is shrinking in the U.S., the brand is growing abroad.
Subway’s international operations have seen net growth for two consecutive years.
This suggests the company may be finding more sustainable success outside its home market.
The expansion strategy overseas could help stabilize the brand as it repositions itself globally.
Final Thoughts on Subway’s Future
Subway’s steep decline in the U.S. underscores the challenges of unchecked expansion and reputational damage.
With fewer than 20,000 stores now operating domestically, the company appears to be focusing on quality over quantity.
Whether this new strategy can restore consumer trust and financial stability remains to be seen.
But if its international growth continues, Subway could still write a new chapter in its global success story.
