Subway shrinks to less than 20K locations for – Business News
Subway, as soon as the dominant presence in American fast food, has slipped under 20,000 eating places nationwide for the primary time in roughly 20 years — persevering with a multiyear contraction that stands in distinction to its growing worldwide ambitions.
According to information launched by the company, Subway ended 2024 with 19,502 US locations — down a web 631 shops from the earlier yr.
In less than a decade, Subway has diminished its US footprint by almost a third. At its peak, Subway operated more than 27,000 eating places within the US in 2016.
Subway, as soon as the dominant presence in American fast food, has slipped under 20,000 eating places nationwide for the primary time in roughly 20 years. Jammy Jean – stock.adobe.com
Since then, Subway has shed roughly 7,600 US locations, with more than 1,000 closures every in 2018, 2020, and 2021.
In December, The Post reported that Subway had long ignored “screams for help” from its struggling franchisees and that the company was in peril of being “gobbled up” by a faster-growing rival Jersey Mike’s.
Despite the shrinking footprint, Subway nonetheless retains the title of the most important US restaurant chain by unit depend.
Starbucks follows with 16,935 home shops and McDonald’s is third with 13,559.
But Subway’s home retrenchment represents a dramatic reversal for a model that after outlined the quick-service class.
A Subway spokesperson acknowledged the trend in a assertion to QSR Magazine, emphasizing the company’s “Smart Growth” strategy.
According to information launched by the company, Subway ended 2024 with 19,502 US locations — down a web 631 shops from the earlier yr. Birch Photography – stock.adobe.com
“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,” a company spokesperson advised QSR Magazine.
As US locations dwindle, Subway is doubling down on worldwide markets.
The company has secured commitments for more than 10,000 new eating places globally by grasp franchise offers struck over the previous three years.
In 2024 alone, Subway signed seven grasp franchise agreements, enabling its entry into international locations equivalent 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 mentioned.
In less than a decade, Subway has diminished its US footprint by almost a third. At its peak, Subway operated more than 27,000 eating places within the US in 2016. Dontree – stock.adobe.com
“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.
Much of this enlargement has come by nontraditional venues like Walmart, Aramark locations and journey facilities, which now make up about a 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 development officer, advised QSR Magazine.
To help its modernization efforts, Subway launched its Fresh Forward 2.0 prototype in late 2024, that includes brighter, localized design parts and improved service layouts.
While world same-store gross sales rose 6.4% in 2023, and North American comps elevated 5.9%, the model’s US footprint continues to contract. monticellllo – stock.adobe.com
Over 20,000 eating places worldwide, together with more than 10,000 in North America, have been reworked or constructed beneath the Fresh Forward idea.
Founded in 1965 by Fred DeLuca and Dr. Peter Buck, Subway remained family-owned till non-public equity firm Roark Capital acquired it in April 2024 in a deal reportedly price $9.6 billion.
Former CEO John Chidsey stepped down on the finish of the yr, with EMEA President Carrie Walsh stepping in as interim chief government.
While 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 — a signal that Subway’s home problem stays unresolved even amid modernization and growth overseas.
