Why Subway Is Closing Stores: What’s Behind the Shrinking Sandwich Giant

Subway has been a staple in the fast-food industry for decades. But recent headlines about Subway closing stores have caused concern among customers, franchisees, and industry observers. This article explores why Subway is shutting down locations, the challenges it faces, and what these changes signal for the future of America’s largest restaurant chain.

Subway storefront with closing signage, illustrating the trend of Subway closing stores in the US

Subway’s Shrinking U.S. Footprint

For the first time in twenty years, Subway’s presence in the United States has dropped below 20,000 locations. In 2024 alone, the brand shuttered 631 restaurants, according to reports from CNN Business. This follows an ongoing trend—Subway has closed more locations than it has opened across the US for eight straight years. Yet, despite these closures, Subway still remains the number one restaurant chain by unit count in America.

Why Is Subway Closing Stores?

Several key factors are influencing Subway’s decision to close stores:

  • Increased Competition: Rivals like Jersey Mike’s and Firehouse Subs have gained popularity, pulling customers away from Subway’s traditional market.
  • Changing Consumer Preferences: Fast-casual and newer quick-service options have shifted what people expect from sandwich shops.
  • Performance and Profitability: Some stores generate lower average sales compared to Subway’s competitors. In response, Subway has adopted a strategic approach, reviewing which locations should close, relocate, or be upgraded based on data and performance.

The brand emphasizes that closing certain stores allows it to focus on giving customers a more consistent, high-quality experience. Subway is also investing in remodeling outlets, new menu items, and digital integration to stay competitive.

Not Just Closures—A Global Shift

While many are focused on the narrative of Subway closing stores in the US, the company’s global network continues to grow. Recent statistics show that Subway’s international presence has expanded for two consecutive years, now boasting 37,000 locations worldwide. This global growth offsets some of the domestic challenges and highlights Subway’s efforts to adapt and innovate.

What Does This Mean for Customers and Franchisees?

For customers, Subway closing stores may mean fewer options in their neighborhood but could also lead to better-operated, modernized restaurants elsewhere. Subway is relocating or updating locations as needed to align with market demands.

Franchise owners are watching closely. While closures can undoubtedly be challenging for local operators, improved performance in remaining stores could benefit those who can weather the industry’s changes.

Industry Outlook

Store closures aren’t unique to Subway. Other large retailers, such as JCPenney, have also announced downsizing initiatives this year (source). The fast-food industry is under intense pressure from inflation, evolving tastes, and growing digital competition. Subway’s response—closing underperforming stores while remodeling others and focusing on digital ordering—is a strategy being mirrored by many brands looking to stay ahead.

Conclusion: The Road Ahead for Subway

The news of Subway closing stores marks a turning point for the sandwich giant. Rather than simple decline, these changes signal a strategic realignment. With a renewed focus on quality, modernization, and digital convenience, Subway hopes to remain relevant in a fast-moving industry. Customers can expect more streamlined experiences, while franchisees and employees face both uncertainty and new opportunities as the chain adapts.

For a deeper dive, read the detailed analysis from Yahoo Finance and further coverage on CNN Business. Stay informed about how Subway and other industry leaders are reshaping the future of dining in America.