Subway, as soon as the dominant presence in American quick meals, has slipped beneath 20,000 eating places nationwide for the primary time in roughly 20 years — persevering with a multiyear contraction that stands in distinction to its rising worldwide ambitions.
Based on information launched by the corporate, Subway ended 2024 with 19,502 US areas — down a web 631 shops from the earlier 12 months.
In lower than a decade, Subway has decreased its US footprint by almost a 3rd. At its peak, Subway operated greater than 27,000 eating places within the US in 2016.
Since then, Subway has shed roughly 7,600 US areas, with greater than 1,000 closures every in 2018, 2020, and 2021.
In December, The Put up reported that Subway had lengthy ignored “screams for help” from its struggling franchisees and that the corporate was at risk of being “gobbled up” by a faster-growing rival Jersey Mike’s.
Regardless of the shrinking footprint, Subway nonetheless retains the title of the biggest US restaurant chain by unit rely.
Starbucks follows with 16,935 home shops and McDonald’s is third with 13,559.
However Subway’s home retrenchment represents a dramatic reversal for a model that when outlined the quick-service class.
A Subway spokesperson acknowledged the development in an announcement to QSR Journal, emphasizing the corporate’s “Smart Growth” technique.
“In the US, we are optimizing our footprint using a strategic, data-driven approach to ensure restaurants are in the right location, image and format and operated by the right franchisees,” an organization spokesperson instructed QSR Journal.
As US areas dwindle, Subway is doubling down on worldwide markets.
The corporate has secured commitments for greater than 10,000 new eating places globally by way of grasp franchise offers struck over the previous three years.
In 2024 alone, Subway signed seven grasp franchise agreements, enabling its entry into international locations comparable to Paraguay and Mongolia and increasing its presence in Europe and Latin America.
“Subway achieved positive global net restaurant growth for the second consecutive year,” the spokesperson stated.
“Our focus remains on Smart Growth.”
Subway now operates almost 37,000 eating places worldwide, making it the third-largest restaurant chain globally — trailing solely McDonald’s and Starbucks.
A lot of this enlargement has come by way of nontraditional venues like Walmart, Aramark areas and journey facilities, which now make up a few quarter of Subway’s world footprint.
The chain has additionally been increasing in airports and on college and hospital campuses in Mexico and Spain.
“By working with the right partners, we are making significant strides in modernizing our brand image… and growing digital sales,” Mike Kehoe, Subway’s world chief improvement officer, instructed QSR Journal.
To assist its modernization efforts, Subway launched its Recent Ahead 2.0 prototype in late 2024, that includes brighter, localized design parts and improved service layouts.
Over 20,000 eating places worldwide, together with greater than 10,000 in North America, have been transformed or constructed underneath the Recent Ahead idea.
Based in 1965 by Fred DeLuca and Dr. Peter Buck, Subway remained family-owned till non-public fairness agency Roark Capital acquired it in April 2024 in a deal reportedly value $9.6 billion.
Former CEO John Chidsey stepped down on the finish of the 12 months, with EMEA President Carrie Walsh stepping in as interim chief government.
Whereas world same-store gross sales rose 6.4% in 2023, and North American gross sales elevated 5.9%, the model’s US footprint continues to contract — an indication that Subway’s home problem stays unresolved even amid modernization and progress overseas.
