Subway’s Shrinking Footprint in the US: A Deep Dive into Restaurant Closures and Global Expansion

If you’ve been feeling like there are fewer Subway restaurants around than there used to be, you’re not alone. Recent data confirms a significant contraction in the sandwich chain’s presence within the United States. The number of Subway locations nationwide has fallen below the 20,000 mark, a milestone that reflects a period of strategic restructuring and adaptation within the company.

According to franchise disclosure documents analyzed by USA TODAY, Subway closed a substantial 631 restaurants in 2024 alone. This figure underscores the magnitude of the changes occurring within the company’s domestic operations. A closer examination of the data reveals a consistent downward trend over the past several years.

At the beginning of 2022, Subway boasted a network of 21,147 franchised locations across the country. By the end of 2023, that number had dwindled to 20,133. The trend continued into 2024, culminating in a total of just 19,502 locations by year’s end. This represents a net loss of 1,645 restaurants within a relatively short two-year timeframe.

The closure of these Subway restaurants is not an isolated incident. It’s part of a broader pattern of strategic adjustments taking place within the fast-food industry as companies grapple with evolving consumer preferences, rising operational costs, and increased competition. The reasons behind these closures are multifaceted and likely vary from location to location. However, several contributing factors can be identified.

One key factor is the increasing saturation of the fast-food market. In many areas, there are simply too many restaurants vying for the same customers. This intense competition puts pressure on individual locations to perform at a high level in order to remain profitable. Restaurants that struggle to meet these performance expectations may be forced to close.

Another factor is changing consumer preferences. Health-conscious consumers are increasingly seeking out healthier and more customizable meal options. While Subway has made efforts to adapt to these trends, such as offering fresh ingredients and customizable sandwiches, some customers may perceive the chain as less appealing compared to newer, more innovative concepts.

Rising operational costs also play a significant role in restaurant closures. The cost of rent, labor, and food supplies has been steadily increasing in recent years, putting a strain on the bottom lines of many restaurants. Subway franchisees, who are responsible for covering these costs, may find it difficult to remain profitable in certain locations.

In response to these challenges, Subway has embarked on a strategic restructuring plan aimed at optimizing its footprint and improving the overall customer experience. A Subway spokesperson, in an emailed statement to USA TODAY, explained that the company is "optimizing its footprint using a strategic, data-driven approach to ensure restaurants are in the right location, image and format and operated by the right franchisees."

This optimization process involves a combination of opening new restaurants in strategic locations, relocating existing restaurants to better locations, and closing underperforming restaurants. The goal is to create a network of restaurants that are well-positioned to meet the needs of customers and generate sustainable profits.

While the number of Subway restaurants in the United States may be declining, the company is experiencing positive growth in other parts of the world. Subway has achieved "positive global net restaurant growth" for the second consecutive year and currently has nearly 37,000 locations worldwide.

This global expansion is being driven by a series of master franchise agreements that Subway has signed with partners in various countries. These agreements grant the partners the exclusive right to develop and operate Subway restaurants within their respective territories.

In October 2024, Subway announced that it had signed more than 20 master franchise agreements, resulting in over 10,000 future restaurant commitments. These agreements mark Subway’s entry into new markets, such as Paraguay and Mongolia, and significantly expand its presence in existing markets, such as France, Belgium, Brazil, and Switzerland.

The company stated that seven of the 20 agreements were signed in 2024. The master franchise strategy is intended to accelerate Subway’s growth in international markets while leveraging the local expertise of its partners. This approach allows Subway to expand its global reach without having to directly manage the operations of individual restaurants in each country.

The contrasting trends of restaurant closures in the United States and global expansion highlight the complex dynamics at play within the Subway organization. While the company is facing challenges in its domestic market, it is also pursuing aggressive growth opportunities in other parts of the world.

The strategic restructuring that Subway is undertaking in the United States is aimed at addressing the challenges it faces in that market. By optimizing its footprint, improving the customer experience, and partnering with strong franchisees, Subway hopes to regain its competitive edge and return to growth in the United States.

The future of Subway in the United States remains uncertain. However, the company’s commitment to strategic restructuring and its focus on global expansion suggest that it is determined to remain a major player in the fast-food industry. The next few years will be critical in determining whether Subway can successfully navigate the challenges it faces and achieve its long-term goals. The company’s ability to adapt to changing consumer preferences, manage its operational costs, and effectively execute its strategic plans will be key to its success. Whether the shrinking US footprint is a temporary adjustment or a long-term trend remains to be seen, but Subway’s global ambitions are clearly undeterred.