Subway, the popular sandwich chain, has seen a significant drop in the number of its US locations. In 2024 alone, the company closed 631 stores, marking the first time in 20 years that it has dipped below 20,000 locations. Despite these closures, Subway remains the largest fast-food chain in the US by the number of locations, with 19,502 stores still operating. However, the trend of closing stores and the broader years-long decline have raised questions about the company’s future in the domestic market.
Subway’s Declining US Presence
Subway’s store count in the US peaked in 2015, when it had over 27,000 restaurants. Since then, the chain has been in a steady retreat, closing stores each year. In 2016, 357 locations were closed, followed by 866 closures in 2017, and 1,108 in 2018. The biggest hit came in 2020, when Subway shut down a staggering 1,601 stores across the country.
Despite these significant losses, Subway has still managed to maintain the top spot among US restaurant chains in terms of total locations. QSR reports that Starbucks comes second with 16,935 locations, followed by McDonald’s with 13,559.
The Company’s Shift to Global Markets
Although Subway’s US footprint has shrunk, the company is focusing on international growth. As of 2024, Subway operates nearly 37,000 locations worldwide. This marks a shift in the company’s strategy, with a stronger focus on global markets where it sees growth potential.
“In the US, we are optimizing our footprint using a strategic, data-driven approach to ensure restaurants are in the right location, image and format and operated by the right franchisees,” Subway stated in a recent report. This includes opening new locations, relocating stores, or closing those that no longer fit within the company’s long-term plans. Subway refers to this process as “Smart Growth,” a strategy aimed at strengthening the brand’s operations despite the store closures.
The Future of Subway in the US
The closures in the US are part of Subway’s attempt to consolidate its operations and focus on quality rather than quantity. While the company has been known for aggressive expansion in the past, it now seems to be choosing depth over breadth. However, losing more than 7,000 stores since 2015 is a steep decline for a company that was once growing rapidly.
The question now is whether this strategy will turn things around for Subway in the US. While fewer Subways may be visible in American neighborhoods, the company’s continued expansion abroad could help stabilize the brand as it adapts to changing consumer preferences and an increasingly competitive fast-food market.
It remains to be seen if Subway’s “Smart Growth” strategy can reverse its downturn in the US, but the company’s global expansion offers a glimmer of hope for the future. As it navigates these challenges, Subway is betting that fewer locations in the US might eventually lead to more success worldwide.
