For the first time in 20 years, Subway’s number of locations in the U.S. has fallen below 20,000, as shown in freshly released franchise disclosure documents. In 2024 alone, the chain closed 631 restaurants, bringing the total to 19,502 stores nationwide.
Despite this decline, Subway remains the largest restaurant chain in the U.S. by unit count. Although the company did not respond to inquiries from Business Insider, it stated to CNN that it is examining its U.S. footprint using a “strategic, data-driven approach” to ensure its restaurants are well-positioned and effectively managed.
Subway is both opening new locations and closing or relocating others as needed to maintain a consistent customer experience. The recent store closures come after a drop from Subway’s peak of 27,000 locations in 2015, following a series of legal issues that have affected its brand.
The chain’s reputation suffered significantly in 2015 due to the criminal activities of Jared Fogle, its longtime spokesperson, who was sentenced to nearly 16 years in prison. Additionally, Subway’s aggressive expansion strategy backfired in 2016 when the prevalence of its stores in close proximity led to internal competition.
In 2021, a class-action lawsuit claimed that Subway’s tuna was not made from actual tuna; this case was dismissed in 2023. Nevertheless, despite these challenges in the U.S. market, Subway has experienced net growth in its international locations for two consecutive years.