Subway, the biggest fast-food chain in the United States by store count, is rapidly downsizing. The company shut down over 600 stores nationwide last year, reducing the number of its United States locations to 19,502. This is the least number of Subway locations the chain has had in the US in more than 20 years.

Subway has since 2016 closed more than 7,600 stores in the US. Just in 2024, the company posted a net loss of 631 restaurants. Subway now has fewer than 20,000 stores open in the US for the first time in more than two decades.

Some of the closures were abrupt, and workers were given no chance to get ready. And in Oregon, for one, 23 Subway restaurants closed, leaving 200 employees, who said they received no prior warning, without jobs.

Many things are going wrong for Subway:

Changing Customer Preferences - People are moving away from only eating meat and potatoes with gravy. Today’s consumers are demanding more variety, healthier menu items, and convenience. Subway’s made-to-order sandwiches have been innovative, but the chain has lagged behind rivals selling new and trendy menu items like plant-based choices or
grab-and-go meals.

Competition From Other Chains - Subway is up against stiff competition from fast-food giants including McDonald’s and Starbucks. They have spent heavily to modernize and innovate, and that has made it difficult for Subway to keep pace.

For Franchisees Franchisees have complained about increased expenses, fierce competition and aging stores. Many are barely remaining solvent, which contributes to the increasing number of closures.

Real Estate Shifts - There is less demand for physical storefronts as more of us order online or through delivery apps. In this new world, Subway’s previous approach to opening stores near each other has not been as effective an advantage.