Subway's U.S. Store Count Dips Under 20,000 for First Time in Two Decades

For the first time in two decades, Subway's portfolio of U.S. outlets has fallen below the 20,000 mark. Recent franchise disclosure details reveal that in 2024 alone, Subway closed 631 of its U.S. restaurants, reducing its count to 19,502.

Despite this reduction, Subway maintains its status as the largest U.S. restaurant chain based on unit numbers.

The company declined to provide a statement to Business Insider, but informed CNN of its ongoing assessment of its American footprint. Subway is using a strategic, data-centric approach to ensure that its restaurants are not only located optimally but also in the appropriate format and managed by competent franchisees.

Subway also communicated to CNN that their current strategy involves inaugurating new outlets while also relocating or closing existing ones when necessary, all aimed at delivering a consistent customer experience.

This recent wave of closures reflects a decrease from their peak of 27,000 locations in 2015, coupled with a series of legal challenges faced by the chain.

The brand's image suffered significantly in 2015 when their long-term spokesperson, Jared Fogle, pleaded guilty to charges related to sex crimes involving minors, resulting in a prison sentence of nearly 16 years.

Subway's aggressive expansion strategy, which backfired in 2016, involved rapidly increasing the number of outlets. This often resulted in franchises being established mere blocks apart, creating internal competition as noted by some franchisees who discussed the issue with Business Insider.

In 2021, the company faced a class-action lawsuit over claims that its tuna was not genuine tuna. This lawsuit was dismissed in 2023.

Internationally, the picture is more positive for Subway, as the company has witnessed net growth in its overseas locations for the second year in a row.