Subway, once the reigning king of the U.S. fast food scene, is now grappling with a massive downsizing. In 2024, the sandwich giant shuttered over 600 stores across the United States, bringing its total U.S. store count to 19,502—a dramatic drop from its peak and the first time in decades the brand has fallen below the 20,000-store threshold.
From holding the title of the largest fast food chain in America by location count in 2015 (with over 27,000 outlets) to navigating a steep decline, Subway’s fall raises important questions: What went wrong, and can the brand recover?
Let’s take a closer look at the key reasons behind Subway’s closures and what it means for the future of fast food.
Why Subway Closed Over 600 US Stores in 2024
Shifting Consumer Preferences: Health, Speed & Variety
Today’s fast food customer isn’t just hungry—they’re informed, health-conscious, and pressed for time. While Subway was once celebrated for its “Eat Fresh” slogan and build-your-own sandwiches, the market has evolved.
Health-focused customers are leaning toward brands like Sweetgreen, Just Salad, and Chipotle, which offer fresh, organic, and often locally sourced ingredients.
Subway’s menu has largely remained the same—bread-heavy, meat-focused, and lacking in modern healthy trends like plant-based proteins or gluten-free options.
Competitors are outpacing Subway in areas like speed, innovation, and sustainability, offering app-based ordering, loyalty programs, and eco-friendly packaging.
In short: Subway failed to keep up with what modern fast food diners want.
Franchisee Frustrations & Operational Challenges
Behind every Subway location is a franchise owner—and many of them are struggling. Reports reveal a growing rift between franchisees and corporate leadership.
Thin profit margins and high franchise fees have made it difficult for owners to turn a profit.
Subway’s controversial real estate strategy placed too many stores in close proximity, resulting in self-cannibalization of sales.
Since 2015, nearly 28% of U.S. Subway stores have closed, with many owners citing poor corporate support and increasing costs as the final straw.
The result? A weakened network of franchisees unable or unwilling to invest in modernizing their stores.
The “Smart Growth” Pivot: Less Is More?
Recognizing the decline, Subway launched a “Smart Growth” strategy aimed at turning the tide:
Closing underperforming stores to reduce market saturation.
Opening new stores in more strategic, high-traffic areas.
Investing in modernized interiors, digital kiosks, and mobile ordering apps.
Rolling out the “Fresh Forward” redesign—a brighter, sleeker layout aimed at Gen Z and millennial customers.
This approach is a major pivot for a brand that once prioritized rapid expansion over store quality. Time will tell if less truly is more.
The Human Toll: Workers Left Jobless
While the restructuring may be strategic on paper, it comes with a very real human cost.
In Oregon, for example, 23 Subway stores closed abruptly, leaving more than 200 employees jobless overnight—without notice or severance.
Workers described being “completely blindsided,” with some learning about closures via local news reports.
Such mass layoffs highlight the instability of the fast food job market, especially within franchised chains.
It’s a grim reminder that corporate decisions have personal consequences.
The Rise of McDonald’s & Starbucks
Though Subway still has more U.S. locations than any other fast food chain, it has been overtaken in revenue, brand loyalty, and cultural relevance.
McDonald’s continues to thrive through menu innovation (like the return of all-day breakfast), digital loyalty programs, and global brand dominance.
Starbucks, with its emphasis on the “third place” experience (home, work, and Starbucks), has mastered the art of blending quality with convenience.
Both brands have invested heavily in mobile ordering, premium products, and customer engagement—areas where Subway lags behind.
A Global Bright Spot: Success Abroad
Interestingly, Subway’s international presence is growing. With over 37,000 global locations, the brand has found success in markets like India, the UK, and the Middle East, where menus are tailored to local tastes.
In India, for instance, Subway offers vegetarian and spicy regional variants.
In the Middle East, halal-certified options and strategic mall placements have helped the brand grow.
This suggests Subway may still have a promising future—just not in the U.S. market.
What Lies Ahead for Subway?
For Subway to make a meaningful comeback, it must address its core challenges head-on:
Modernize the menu with plant-based, allergen-friendly, and globally inspired offerings.
Repair franchisee relationships and provide better support and flexibility.
Rebrand itself for the digital age with loyalty programs, social media engagement, and community involvement.
Whether these changes will be enough to restore its former glory remains to be seen.
FAQs: Subway’s Store Closures in 2024
Q1. Why did Subway close over 600 stores in 2024?
A: Subway closed over 600 stores due to a combination of factors including changing consumer preferences, rising operating costs, franchisee dissatisfaction, and underperforming locations. The closures are part of a broader “Smart Growth” strategy to improve profitability by focusing on quality over quantity.
Q2. How many Subway locations are left in the U.S. after the closures?
A: As of 2024, Subway operates 19,502 locations in the United States, marking the first time in 20 years that its store count has dropped below 20,000.
Q3. What are the main reasons for Subway’s decline in the U.S.?
A: The main reasons include:
Outdated menu offerings
Poor franchisee support
Store oversaturation in certain areas
Increased competition from brands like Chipotle, Sweetgreen, and McDonald’s
Lack of innovation in digital ordering and customer experience
Q4. Are all Subway stores closing permanently?
A: No, not all stores are closing. Subway is shutting down underperforming locations while opening new ones in high-potential markets. The goal is to reduce store overlap and improve overall brand health.
Q5. Are Subway stores doing better in other countries?
A: Yes. Subway is expanding internationally, with over 37,000 global locations. In many countries, especially in Asia and the Middle East, the brand is adapting menus to local tastes and experiencing strong growth.
Final Thoughts: A Sandwich Empire at a Crossroads
Subway’s decline offers a powerful lesson for the fast food industry: brands that fail to adapt will fall behind. In a world where customer loyalty is earned through innovation, transparency, and convenience, Subway’s outdated model simply couldn’t keep up.
The chain’s global footprint gives it a fighting chance—but only if it can reinvent itself in the eyes of American consumers.
What’s your take? Have you noticed fewer Subways in your area? Are you still a fan, or have you moved on to other fast food favorites like Chipotle, Panera, or Chick-fil-A?
Let us know in the comments below—we’d love to hear your thoughts.