Changing Course: Subway's Strategic Shift Amid U.S. Location Reductions

Subway’s presence in the United States has diminished once again, dipping below 20,000 locations for the first time in twenty years.

In 2024, the popular sandwich chain shuttered 631 outlets, reducing its count to 19,502 across the nation, based on franchise disclosure records. This marks the eighth consecutive year of closures in its home market. Nevertheless, Subway still holds the title as the largest restaurant chain in America.

Since peaking at approximately 27,000 locations in 2015, Subway has been on a downward slope. The brand grapples with intensified competition, evolving consumer tastes, and its restaurants have consistently posted lower average sales compared to competitors.

In a statement to CNN, Subway highlighted its significant international growth, achieving a net increase in global locations for the second year in a row, now boasting 37,000 outlets worldwide. The chain is carefully evaluating its U.S. footprint with a “strategic, data-driven approach” to ensure each restaurant is strategically placed, visually appealing, and managed by competent franchisees.

Subway shared that it is “opening new restaurants, as well as relocating or closing existing ones when necessary, to provide a consistent, high-quality, and convenient experience for guests.”

In recent years, Subway has implemented numerous upgrades to its menu and store design to counteract these challenges. Last year, the brand launched a fresh store concept featuring vibrant decor and local accents to enhance ambiance, along with improved seating arrangements.

Furthermore, Subway has embraced menu customization, amplified its drive to promote digital orders through its app, and revolutionized its meat preparation by moving away from pre-sliced cold cuts to freshly sliced ones.

Additionally, Subway is emphasizing value as the fast-food industry scrambles to win over customers frustrated by soaring prices. Recently, the brand announced the return of the $6.99 footlong deal for the entire month of May, available exclusively through digital channels. Encouraging digital orders is a proven strategy in the industry to bolster customer loyalty.