Subway Closes 631 US Locations, Sees Fast Decline
The decline in US locations is a significant challenge for Subway, but the company's international growth and efforts to enhance the customer experience offer opportunities for recovery and expansion, as it works to regain its footing in a rapidly changing fast-food landscape.
Subway's US footprint has shrunk below 20,000 locations for the first time in two decades, with 631 closures in 2024, leaving 19,502 locations, as the chain struggles to adapt to shifting consumer preferences and lower average sales.
Despite the decline, Subway remains the largest restaurant chain in the US, with 37,000 locations globally, and has seen international growth. The company is focusing on a "strategic, data-driven approach" to optimize its US locations and improve the customer experience, including recent improvements such as new menu items, app enhancements, and a focus on value.
The chain closed 631 more restaurants than it opened in 2024, and has now shed 7,600 locations since 2015. This marks the first time in 20 years the chain has fewer than 20,000 locations in the US. Subway's average unit volume reached $490,000 in 2024, a 1% increase from 2023, but remains lower than rivals like Jersey Mike's and Jimmy John's.
Subway's struggles with closures have seen it fall from No. 8 to No. 9 on the Top 500 restaurant chains list, with system sales down 3.8% in 2024. The company's closure rate was 3% of restaurants in 2024, compared to 2% in 2023, highlighting the need for continued adaptation and improvement to remain competitive in the market.