Subway Closes Additional 631 US Stores In One Year as Footprint Declines

In what marks the eighth consecutive year of contraction for America's largest sandwich chain, Subway closed 631 locations across the United States in 2024, bringing its domestic presence below 20,000 restaurants for the first time in two decades.

The ongoing reduction represents a significant shift for a brand that once seemed to be on every street corner across America, and signals deeper challenges in its business model despite maintaining its position as the country's most numerous restaurant chain.

The Shrinking Footprint

Subway's U.S. presence has now fallen to 19,502 locations, according to the company's latest franchise disclosure documents^1,^3.

This decline isn't just a recent phenomenon but part of a long-term trend that has seen the chain shed approximately 7,600 restaurants since reaching its peak of around 27,000 locations in 2015^1,^4.

To put this in perspective, the number of stores Subway has closed over the past nine years equals the entire U.S. footprint of Taco Bell^9.

Subway's Declining U.S. Store Count
2015: ~27,000 locations (peak)
2024: 19,502 locations
Net loss: ~7,600 locations
Percentage decline: 28% in less than a decade

The rate of closures has fluctuated over the years, with the chain experiencing its most significant contractions in 2018, 2020, and 2021, when it shuttered more than 1,000 locations in each of those years^4.

While the 631 net closures in 2024 represent an improvement over the average annual closure rate of 950 locations since 2015, they still mark a significant acceleration from the 443 stores closed in 2023^4,^9.

Annual Closure Pattern

The consistent year-over-year reduction shows a clear pattern of contraction:

Source: QSR Magazine data^4

Still America's Largest Chain, But For How Long?

Despite this significant contraction, Subway remains the restaurant chain with the largest number of U.S. locations.

Its closest competitors by store count include Starbucks $SBUX ( ▲ 3.23% ) , which finished its 2024 fiscal year with 16,935 domestic locations, and McDonald's $MCD ( ▼ 0.31% ) with 13,559 U.S. restaurants^4,^5.

However, the gap is narrowing with each passing year, and if current trends continue, Starbucks could eventually overtake Subway for the top spot.

More concerning is Subway's declining position in terms of system-wide sales.

The company generated $9.5 billion in U.S. system sales in 2024, reflecting a 3.8% decrease from 2023^9.

This performance caused Subway to fall from 8th to 9th place in the ranking of top restaurant chains by sales volume, as it was surpassed by Chipotle Mexican Grill – ironically, a chain that adopted Subway's assembly-line style of service but has executed it with greater financial success^9.

The Profitability Problem

At the heart of Subway's ongoing contraction is a fundamental challenge with unit economics.

While the chain achieved its highest-ever average unit volume in 2024 at $490,000, this figure represents just a 1% increase over 2023^3,^9.

Considering that menu prices rose by approximately 4% during this period, the data suggests that the average Subway location actually experienced a net loss in customer traffic^9.

Subway's Performance Metrics (2024)
Average Unit Volume: $490,000
Year-over-year growth: 1% (against 4% menu price increases)
U.S. System Sales: $9.5 billion
System Sales Change: -3.8% from 2023

This performance places Subway's average unit volume lower than all but 19 other restaurant chains on the Technomic Top 500 list^3,^9.

By comparison, direct competitor Jersey Mike's reportedly generates average store revenues approximately three times higher than Subway's^8.

This stark contrast helps explain why Jersey Mike's was acquired by Blackstone Group for $8 billion in late 2024, despite having only about 3,000 U.S. locations – a valuation not far below the $9.6 billion that Roark Capital paid for Subway with its nearly 20,000 domestic stores^4,^8.

International Expansion vs. Domestic Contraction

Interestingly, while Subway continues to shrink in the United States, the company has been expanding internationally.

The chain has highlighted positive global net restaurant growth for the second consecutive year and now boasts a worldwide presence of approximately 37,000 locations^1,^4.

This makes Subway the third-largest restaurant chain globally, trailing only McDonald's and Starbucks^4.

Source: Store count data from multiple reports^1^6

The company has more than 10,000 units in its international pipeline from deals secured over the past three years, suggesting that while the U.S. market may be oversaturated, there remain significant growth opportunities abroad^4.

The Human Impact

Behind the statistics are real consequences for workers and franchisees.

In Oregon alone, more than 200 employees across 23 Subway locations reportedly lost their jobs without warning when restaurants were suddenly shut down^2.

For franchisees, who operate the vast majority of Subway's locations, the closures represent significant financial losses.

Since 2016, Subway's U.S. franchisees have closed 28% of the chain's locations in less than a decade^3,^9.

Many of these small business owners invested substantial capital to open their restaurants, only to face challenging market conditions and reportedly inadequate support from the corporate level^7,^8.

Turnaround Strategies

Subway is not passively accepting its domestic decline. The company has implemented several initiatives aimed at reversing its fortunes:

Subway's Revitalization Efforts
1. Fresh Forward 2.0 design rollout
2. Menu innovation and ingredient improvements
3. "Smart Growth" strategy for location optimization
4. New ownership under Roark Capital (acquired for $9.6 billion in 2024)

In November 2024, Subway announced its "Fresh Forward 2.0" prototype, which aims to enhance brand personality with vibrant décor elements, bold wall graphics, localized messages, improved lighting, and warmer wood tones.

This continues the original Fresh Forward design initiative, which has been implemented in more than 20,000 restaurants globally, including over 10,000 in North America^4.

The company has also emphasized a "strategic, data-driven approach" to optimize its U.S. footprint, focusing on ensuring restaurants are in the right locations, with the right image and format, operated by the right franchisees^1,^4.

This includes opening new restaurants while relocating or closing underperforming ones as needed.

Industry Implications

Subway's continued contraction offers several lessons for restaurant industry investors and operators:

1. Scale alone doesn't guarantee profitability or sustainability

2. Unit economics ultimately matter more than total store count

3. Over-expansion can lead to market saturation and cannibalization

4. Franchise models require a careful balance between corporate growth and franchisee success

5. Adapting to changing consumer preferences remains essential

The sandwich category itself remains robust, as evidenced by the growth of competitors like Jersey Mike's and Jimmy John's, suggesting that Subway's challenges are more company-specific than category-wide^8.

This highlights the importance of execution and adaptability in a competitive restaurant landscape.

Future Outlook

While Subway's U.S. footprint continues to shrink, there are some potential positive indicators.

The rate of closures has generally slowed from the peak years of 2018-2021, and the acquisition by Roark Capital in 2024 brings new ownership with extensive restaurant industry experience^4,^9.

Roark's portfolio includes brands like Arby's, Buffalo Wild Wings, and Dunkin', providing potential synergies and expertise that could benefit Subway^4.

The company's international growth also provides a counterbalance to its domestic challenges and suggests that the brand still resonates with consumers in many markets.

If Subway can successfully apply lessons from its international operations to its U.S. business, it may eventually stabilize its domestic presence.

Nevertheless, the path forward remains challenging.

The competitive landscape continues to evolve, with fast-casual concepts gaining market share and traditional quick-service restaurants upgrading their offerings and experiences.

Subway will need to effectively execute its revitalization strategies while addressing the fundamental unit economics that have driven its ongoing contraction.

For the sandwich giant that once seemed unstoppable in its expansion, the coming years will be crucial in determining whether its current shrinkage represents a right-sizing toward a more sustainable footprint or the beginning of a more existential decline for what remains, at least for now, America's most ubiquitous restaurant chain.