The largest fast food restaurant chain in the United States, Subway , has experienced a dramatic reduction in its domestic presence, closing more than 600 US stores in 2024 alone. This marks a major turning point for the once-dominant brand, which previously boasted over 27,000 locations nationwide at its peak in 2015.

The closures reflect broader challenges faced by the company, including shifting consumer preferences, increased competition, franchisee dissatisfaction, and evolving real estate strategies. As Subway adapts its business model, it is focusing on international expansion and redesigning its stores, all while trying to stabilize its shrinking footprint in the United States.


Why Subway closed over 600 US stores in 2024

Subway, which grew from a small sandwich shop in Connecticut to the largest fast food restaurant chain in the United States, has seen its footprint shrink in the US over the past several years. According to reports, the brand closed a net of 631 US locations in 2024 alone, bringing its total to 19,502 stores by year-end—a significant drop from its peak of 27,000 stores in 2015. This marks the first time in two decades that Subway has fallen below the 20,000 mark. While the brand still leads the US fast food industry in store count, this decline raises questions about the long-term viability of its model and what this trend means for the broader fast food sector.


1. Shifting consumer preferences

One of the major reasons for Subway's recent store closures is a significant shift in consumer preferences. Fast food patrons are increasingly looking for more variety, convenience, and healthier options. Subway’s traditional model, which largely focuses on custom-made sandwiches, has been challenged by competitors offering more diverse and streamlined dining experiences. With growing demand for plant-based, vegan, and environmentally sustainable options, many consumers have started opting for brands that better reflect these evolving tastes. Subway, known for its heavy reliance on bread-based sandwiches, has struggled to keep pace with these market trends.


2. Franchisee challenges and operational costs

Many Subway franchisees have faced rising operational costs and slim profit margins, which have made it difficult for them to sustain their businesses. The company’s franchise model has been under pressure for years, with complaints about high fees, lack of support from the corporate office, and the complexities involved in maintaining an aging fleet of stores. In fact, Subway’s own data shows that franchisees have closed approximately 28% of the chain’s US locations in less than a decade. The pressure on individual franchisees to remain profitable in a saturated market has undoubtedly contributed to the wave of closures.


3. Store design and experience revamp

In response to these challenges, Subway has undertaken significant efforts to revamp its brand and store experience. The company has been redesigning its locations with a more modern and appealing layout, incorporating a sleeker design aimed at attracting a younger demographic. However, while these changes are necessary for staying competitive, they are also part of a broader strategy that includes selectively closing underperforming stores to optimize the brand’s footprint.

According to Subway spokespersons, the chain’s focus is on “Smart Growth,” a strategic, data-driven approach to restaurant placement that considers location, format, and franchisee compatibility, as per Men's Journal report. While this means opening new stores, it also entails relocating or shutting down those that no longer fit into the company's vision for the future.


Subway closures leave hundreds jobless without warning

The closures have not been without consequences for employees and local communities. In Oregon, more than 200 workers across 23 different Subway locations found themselves out of work unexpectedly in 2024, as per Men’s Journal report. This sudden announcement left many franchise employees in the lurch, with no prior warning and no severance package. One manager, Joanne Kennedy, described the experience as "completely and totally blindsided," highlighting the lack of transparency in the decision-making process.

For many workers, Subway was a source of steady employment. The closures, while part of a broader corporate strategy, reflect the increasingly unstable nature of the fast food industry, where shifts in consumer behavior and operational challenges can lead to rapid closures without much forewarning.


Subway's strategy for international markets

While its US footprint is shrinking, Subway has been able to maintain and even grow its presence in international markets. The brand reported positive global net restaurant growth for the second consecutive year, with nearly 37,000 locations worldwide. This global expansion is part of the company’s ongoing efforts to optimize its position in international markets, where it continues to see robust demand for its offerings.

The strategy behind this international growth involves tailoring Subway’s menu and store format to fit regional tastes and preferences. For instance, in some countries, Subway has introduced more localized ingredients and flavors to cater to specific cultural tastes. This localized approach has helped the brand sustain its relevance and continue attracting customers abroad, despite struggles in the domestic US market.


McDonald's and Starbucks: The new giants in the US fast food market

Though Subway remains the largest fast food chain in the US by store count, it no longer leads the market in terms of revenue. McDonald's, with fewer locations than Subway, brought in the highest revenue among fast food chains in 2024. McDonald's dominance in the market, bolstered by innovations such as its all-day breakfast menu and global appeal, has made it the top contender for the title of “most successful fast food chain.”

Starbucks, with 16,346 locations in the US, also poses significant competition to Subway. Starbucks has capitalized on the rise of coffee culture and the demand for premium beverages, creating an experience-focused business model that has resonated with modern consumers. This shift towards more experience-oriented dining establishments presents a challenge for traditional fast food models like Subway.


Subway’s origins and growth

Subway’s journey began in 1965, when 17-year-old Fred DeLuca, seeking funds to pay for his college education, approached family friend Dr. Peter Buck for advice. The two opened a small submarine sandwich shop in Bridgeport, Connecticut, with an initial investment of just $1,000. Over the next several decades, the business grew into the world’s largest fast food chain, revolutionizing the industry with its customizable sandwich concept and aggressive franchise model.

At its peak, Subway had 27,000 locations worldwide and was a dominant force in the quick-service restaurant (QSR) industry. However, as the market evolved and consumer preferences shifted, Subway’s rapid growth slowed, and it has faced increasing competition from both established brands and newer, more agile players.


What does the future hold for Subway

As of 2025, Subway’s future remains uncertain. While the company continues to pursue international growth and revamp its store designs, it faces an uphill battle to restore its position in the US market. The closures of hundreds of locations over the past year reflect the ongoing difficulties faced by Subway, particularly in adapting to changing consumer tastes and operational challenges.

That said, Subway’s continued international expansion and focus on “Smart Growth” suggest that the brand is not giving up on its ambition to remain a key player in the global fast food market. The company’s ability to adapt to regional demands and its ongoing efforts to refresh its store experience could help it regain some of its former luster.


Related FAQs

Why has Subway closed so many stores in the US?

• Subway has faced challenges including shifting consumer preferences, increased competition, and operational costs, leading to closures of underperforming stores.

Is Subway still the largest fast food chain in the US?

• Yes, despite the closures, Subway remains the largest fast food chain in the US by store count, though McDonald’s has surpassed it in terms of revenue.

What is Subway’s global strategy?

• Subway is focusing on international expansion, tailoring its offerings to regional tastes while optimizing its US footprint through a strategy called “Smart Growth.”

How many stores does Subway have worldwide?

• Subway has nearly 37,000 locations globally, with a growing presence in international markets.

What was the origin of Subway?

• Subway was founded in 1965 by Fred DeLuca and Dr. Peter Buck, initially to fund DeLuca’s college education, and it grew into a global fast food giant.