Astonishing scale of Subway's demise revealed as sandwich chain closes staggering number of locations

Daily Mail​

19-05-2025

Subway has shrunk significantly in recent years — closing more than 1,645 locations in the past two years alone, new figures show.
At the beginning of 2022, the company had 21,147 franchised locations across the country, according to franchise filings analysed by USA Today.
That number had dropped to 20,133 by the end of 2023 — a loss of 1,014 stores that year.
And by the end of 2024, there were just 19,502 locations after the popular sandwich chain shut 631 underperforming restaurants last year
That marks the chain's eighth consecutive year of closures. Before the closures, the sandwich empire was operating around 27,000 stores in the US alone in 2015.
The brand now faces increasing pressure from competitors like Jersey Mike's Subs and Jimmy John's, evolving consumer tastes, and relatively weak sales.
Several franchisees have also filed for Chapter 11 bankruptcy protection, and the chain abruptly closed 23 locations across two states after a bank hacking nightmare.
Despite the setbacks, Subway remains the third-largest restaurant chain in the world — behind only McDonald's and Starbucks — though analysts are sounding the alarm over its continued decline.
'Subway has a huge number of stores in the US. Since opening them a lot has shifted,' Retail expert Neil Saunders told DailyMail.com.
'The market has become more competitive, consumers are spending less at quick service restaurants, and costs for operating stores have risen.'
In response, Subway says it is taking a strategic, data-driven approach to optimize its store footprint.
That includes opening new locations and relocating or closing others to 'ensure a consistent, high-quality, and convenient guest experience.'
'It's not surprising that Subway has adopted a more data-driven approach to analyzing its store footprint, a strategy we've seen many retail and restaurant chains utilize over the past few years,' R.J. Hottovy, head of analytical research at Placer.ai, told DailyMail.com.
'With numerous trade areas changing recently due to migration trends, chains like Subway are increasingly using location data to optimize where they locate their stores.'
Subway had already been struggling financially for several years and was acquired by Roark Capital Group in 2023.
The Subway heirs agreed to sell the chain to Roark Capital for $9.6 billion following months of acquisition rumors.
The move did not improve the chain's sales in the US, but experts believe the closures may be what Subway needs to take its brands to new heights again.
'The current wave of closures is a response to all these things,' Saunders said.
'Subway and its franchise partners are right sizing the chain. And even after the closures, Subway still has a huge number of outlets.'
'While these adjustments can result in short-term revenue decreases, they generally lead to more stable and consistent store locations in the long run,' Hottovy stated.
Even though it's struggling in the US, the subway chain's international expansion has proven to be a success, operating over 37,000 restaurants worldwide.
'Subway achieved positive global net restaurant growth for the second consecutive year,' a Subway spokesperson said in a statement to QSR magazine.
The chain is also focusing on 'Smart Growth,' a development strategy that aims to increase its profits and protect its marketing position.
It's continuing to revamp its stores to fit its Fresh Forward 2.0 design, which includes bold wall graphics with messages, elevated lighting, and support for the growth in digital innovations.
Besides financial and design restructuring, Subway made headlines for switching over to Pepsi from Coca-Cola beverages.
Fans were outraged by the decision, which the restaurant chain confirmed would happen last year.
Subway was also replaced by fellow sandwich chain Jersey Mike's as the official fast food sponsor of the NFL.
Other talked about changes Subway made over the last few months including offering the new limited-time Doritos Footlong Nachos and will relaunch its $6.99 any footlong deal tomorrow until May 31.
Daily Mail has reached out to Subway for comment.