Subway Closes Over 600 U.S. Stores as It Falls Below 20,000 Locations for the First Time in Two Decades

 

Subway Closes Over 600 U.S. Stores as It Falls Below 20,000 Locations for the First Time in Two Decades

For the first time in two decades, Subway, the once-dominant sandwich brand in the US, has fallen below 20,000 domestic stores. The fast-food juggernaut closed 631 outlets in the United States in 2024, leaving 19,502 locations nationwide, according to recently made public franchise disclosure filings.

In terms of the number of locations, Subway remains the largest restaurant chain in the United States despite the drop. With more than 37,000 outlets operating worldwide—the second consecutive year of foreign growth—the brand is doing well on a global scale.

 

Strategic Closures Focused on Quality and Performance

The closures, according to Subway, are a part of a bigger, data-driven strategy to change the company's footprint. It is "reviewing its U.S. presence using a strategic, data-driven approach to ensure restaurants are in the right location, image, and format, and are operated by the right franchisees," the firm said in a statement to CNN.

The business stressed that to provide a "consistent, high-quality and convenient guest experience," some failing stores are being closed while others are being moved or opened.

 

$6.99 Meal Deal Pulled After Disappointing Performance

Store closures were announced just months after Subway abruptly ended its $6.99 Meal Deal. By combining a six-inch sub with a drink and chips or cookies, the promotion, which was launched on November 3, 2024—National Sandwich Day—was intended to increase traffic and sales.

However, after falling short of expectations, the deal was taken out of restaurants on November 27. The nationwide rollout didn't bring in the amount of traffic Subway had planned for, despite initial market testing showing promise.

In a note to franchisees, Subway stated that although the nationwide Meal Deal offer is generating the desired quantity of daily redemptions, the campaign is not producing the expected outcomes overall.

 

A New Direction Focused on Profitability and Guest Experience

Subway maintains that its value approach is "thoughtful and strategic," utilizing data to strike a balance between franchisee profits and customer expectations. According to the business, it is still testing new value-driven deals to boost foot traffic and client loyalty.

Subway is committed to changing its brand to satisfy contemporary consumer needs in the US and abroad as part of its long-term strategy.

Retail Industry Also Facing Widespread Closures

Other well-known brands are having difficulties besides Subway. By the end of May 2025, JCPenney, a retailer, plans to close a number of its locations in seven separate states. But the company said there are "no plans to substantially decrease our store count" and classified these closures as "isolated."

According to reports, the closures have nothing to do with JCPenney's recent merger with SPARC Group, which created Catalyst Brands, a retail collective including six significant retailers.