A POPULAR sandwich shop is rapidly shrinking in size.
The fast food giant is the largest in the US by number of locations.
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Subway, the sandwich chain, closed 631 locations across the country in 2024 alone, according to a recent report from QSR.
While Subway still operates 19,502 restaurants nationwide, that number marks a significant milestone.
This is the first time in 20 years the chain has dipped below 20,000 domestic locations.
It’s part of a broader, years-long decline.
COMPANY HISTORY
Subway’s US store count peaked in 2015 at more than 27,000 restaurants, but since 2016, the chain has been in retreat.
That year, it closed 357 locations across the US.
The pace accelerated quickly: 866 closures followed in 2017, then 1,108 in 2018, culminating in a staggering 1,601 closures in 2020.
Despite the steep losses, Subway still holds the top spot among US restaurant chains in terms of total units.
FACING COMPETITION
QSR reports that Starbucks comes in second with 16,935 locations, and McDonald’s ranks third with 13,559.
Still, the rapid downsizing raises questions about the brand’s future in the US – and how it’s adapting.
“Subway achieved a positive global net restaurant growth for the second consecutive year,” QSR said Subway stated.
The company now operates nearly 37,000 locations worldwide, signaling a shift in its focus to global markets.
CORPORATE STRATEGY
“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,” the company said in its statement.
“This includes opening new restaurants as well as relocating or closing locations as needed, to ensure a consistent, high-quality and convenient guest experience.”
The closures, then, are not just signs of trouble – they’re part of what Subway describes as a long-term strategy.
The company refers to it as “Smart Growth,” a plan to consolidate and strengthen its operations.
Even so, losing more than 7,000 stores since 2015 represents a steep fall from grace for a chain once known for its aggressive expansion.
The numbers suggest that Subway may be choosing depth over breadth as it recalibrates its US presence.
While many American consumers may notice fewer Subways in their neighborhoods, the company’s international footprint continues to grow.
That global expansion may help stabilize the brand as it navigates changing consumer habits and an increasingly competitive fast-food landscape.
Whether “Smart Growth” can reverse the US downturn remains to be seen, but for now, Subway is betting that less might eventually lead to more.
