Subway is shrinking fast. The world’s largest fast-food chain by store count closed 631 U.S. locations in 2024, dropping its total number of domestic restaurants below 20,000 for the first time in over two decades. The figure, reported by QSR Magazine, marks a dramatic turning point for a brand that once boasted over 27,000 U.S. outlets at its 2015 peak.
The trend isn’t new, but it’s accelerating. Since 2016, Subway has lost roughly 7,600 U.S. stores, a 28% drop in less than a decade, according to Restaurant Business. And while Subway still leads in store count, it’s now far behind McDonald’s and Starbucks in revenue, market influence, and cultural relevance.
The closures haven’t been quiet. In Oregon, for example, 23 Subway locations abruptly shut down in 2024, blindsiding more than 200 employees. One manager told KPTV they received “no warning, no heads up, no transparency.” The job losses came without severance or relocation plans, adding to growing scrutiny of the company’s franchise management practices.
Despite the dramatic U.S. contraction, Subway’s global strategy tells a different story. The company ended 2024 with nearly 37,000 locations worldwide and claims it achieved “positive global net restaurant growth” for the second straight year. A company spokesperson called the moves part of a “smart growth” strategy focused on optimizing locations, improving design, and elevating the franchisee experience.
“In the U.S., we are optimizing our footprint using a strategic, data-driven approach,” Subway said in a 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.”
Translation: underperforming stores are out, and shiny, redesigned locations in more lucrative areas are in.
Still, critics argue that Subway’s U.S. struggles stem from more than just location data. A saturated fast-casual market, rising food costs, and high franchisee dissatisfaction have all chipped away at the brand’s stability. Longtime fans also cite menu fatigue and a lack of innovation as reasons the sandwich giant has fallen out of favor.
Subway’s story began in 1965 when 17-year-old Fred DeLuca launched a Connecticut sub shop with $1,000 from family friend and nuclear physicist Dr. Peter Buck. That humble beginning led to one of the most aggressive global expansions in fast food history.
But in recent years, the brand’s success story has reversed. Between legal issues involving former spokesman Jared Fogle, constant leadership changes, and franchisee lawsuits, Subway has struggled to maintain momentum in a modern food landscape increasingly dominated by customizable, fresh-forward, or delivery-optimized concepts.
In 2024, McDonald’s had just over 13,000 U.S. locations, far fewer than Subway, but it generated significantly more revenue. Starbucks, with about 16,000 U.S. stores, continues to grow both revenue and cultural relevance, while brands like Chipotle and Jersey Mike’s are expanding aggressively into spaces once dominated by Subway.
Whether Subway can course-correct remains unclear. The company is betting big on international growth, digital upgrades, and new store formats. But if closures continue at this pace, the brand risks losing not just its lead in store count, but its legacy altogether.
