There was a time when the jingle was stuck in everyone’s head: “Five… five dollar… five dollar foot-long.”
That deal went away long ago, and now Subway continues to face challenges like many restaurant chains, including shuttered stores and a shrinking footprint.
The neon green signs touting fresh sandwiches once boasted more than 27,000 locations in the United States—more than McDonald’s by a long shot. But QSR, which tracks trends in the restaurant business, says Subway shrank by 631 stores in 2024 and has closed about 7,600 U.S. stores over the past nine years.
In fact, QSR says Subway is now below 20,000 U.S. locations for the first time in a generation.
Subway still has a significant footprint. It tops the list, followed by Starbucks and McDonald’s. The same three jostle for the same positions internationally, with Subway still holding around 37,000 restaurants worldwide.
So what’s happening? Why are restaurants closing for what has been America’s number one chain?
Subway didn’t respond to KTLA’s requests for comment. In a statement to QSR, the chain says it remains focused on Smart Growth—ensuring restaurants are in the right location with the right franchises—and that includes opening new restaurants as well as relocating or closing locations as needed.
What does that mean for Southern California or other top Subway locations? We don’t know yet. We asked Consumer Confidential’s David Lazarus for his take on things. Lazarus says Subway is “still fundamentally strong and competitive in the fast-food space,” but he cautions everyone in the quick-service industry.
“The big problem for Subway and competing chains is that rising prices impact their business model, which is predicated on affordability,” Lazarus says. “Consumers are starting to realize that if there’s little price differential between the likes of Subway and a fast-casual eatery, you might as well go fast casual and enjoy a sit-down experience with proper napkins and everything.”
So where does Subway go from here?
According to their website, they continue to work on deals, including a footlong, which is now $6.99, and collaborations with companies like Doritos. This past month, they named a new Global Chief Marketing Officer, who they say supports “Subway’s continued focus as the freshest, most convenient, and most affordable sandwich option on the market.”
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