Largest US restaurant chain is closing hundreds of stores at an alarming rate
The sandwich chain has been losing restaurants in the U.S. for the last eight years in a row. In 2024, it closed 631 restaurants, making the total number in the country 19,502. Despite this loss, Subway is still the largest restaurant chain in the country.
There are 37,000 Subway locations globally, marking the second consecutive year the sandwich chain has grown with its international presence. In a statement to CNN, the company said it would continue to review its presence in the U.S. 'using a strategic, data-driven approach to ensure restaurants are in the right location, image and format and operated by the right franchisees.'
Subway said it is 'opening new restaurants as well as relocating or closing locations as needed, to ensure a consistent, high-quality and convenient guest experience.'
The news of the sandwich chain's closures comes months after it canceled its $6.99, six-inch Meal Deal back in November 2024 after the promotion failed to take off.
The deal was reportedly pulled from stores on November 27 due to poor performance, just weeks after it was introduced on National Sandwich Day (November 3). The promotion included any six-inch sub and a choice of a small drink and chips, or two cookies for $6.99.
'The Meal Deal was designed to help drive a lift in traffic, sales and, ultimately, restaurant-level profitability, and delivered on these objectives during the market test,' a message from Subway read at the time. 'While the national Meal Deal promotion is delivering the expected number of daily redemptions, overall the promotion is not driving the anticipated results.'
'Subway's approach to value is thoughtful and strategic, leveraging data to help balance consumer needs while protecting franchise profits,' the company said. 'We continuously test new value platforms aimed at helping drive profitable traffic and encouraging repeat visits.'
Retail companies have also struggled this year, with multiple JCPenney stores across seven states set to close by the end of May.
JCPenney did call the seven closures 'isolated' and further stated there are 'not plans to significantly reduce our store count.'
The company previously said the closures were 'unrelated to' the brand's recent merger with the SPARC Group, which formed Catalyst Brands, an organization of six major retailers.
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