The subway was once dominated by fast food in America, but for the first time in about 20 years it has been the first time in the country to slid into under 20,000 restaurants. The rise of international ambitions.
According to Company released dataThe subway ended 2024 with 19,502 US locations.
Less than a decade later, Subway has reduced its US footprint by almost a third. At its peak, the subway operated over 27,000 restaurants in the US in 2016.
Since then, the subway has dropped out of about 7,600 US locations, with over 1,000 closures each in 2018, 2020 and 2021.
In December, the Post reported that the subway had long ignored “crying for help” from struggling franchisees, and was in danger of being “clenched” by fast-growing rival Jersey Mike.
Despite the reduced footprint, Subway holds the title of the largest restaurant chain in the United States per unit count.
Starbucks continues at 16,935 domestic stores, while McDonald's is third with 13,559.
However, domestic subway cuts represent a dramatic reversal of the brands that once defined the Quick Service category.
A subway spokesman acknowledged the trend in its statement to QSR magazine, highlighting the company's “smart growth” strategy.
“In the US, we use a strategic, data-driven approach to optimize our footprint to ensure that restaurants are run by the right location, images, format and the right franchisees.”
As US locations decrease, subways are doubling in international markets.
The company has secured commitments for over 10,000 new restaurants worldwide through master franchise transactions over the past three years.
In 2024 alone, the Metro signed seven Master Franchise agreements, allowing entry into countries such as Paraguay and Mongolia, expanding its presence in Europe and Latin America.
“The subway has achieved positive growth in global online restaurants for the second year in a row,” the spokesman said.
“Our focus remains on wise growth.”
The subway currently operates around 37,000 restaurants worldwide, making it the third largest restaurant chain in the world. I only track McDonald's and Starbucks.
Much of this expansion comes through non-traditional venues such as Walmart, Aramark locations and travel centres, and now accounts for about a quarter of the Metro's global footprint.
The chain is also expanding at airports and university and hospital campuses in Mexico and Spain.
“Working with the right partners, we are modernizing our brand image and making great strides in digital sales growth,” Mike Kehoe, Metro's Global Chief Development Director, told QSR Magazine.
To support modernization efforts, Subway introduced a fresh forward 2.0 prototype in late 2024.
Over 20,000 restaurants worldwide, including over 10,000 people in North America, have been remodeled or built under a fresh forward concept.
Founded in 1965 by Fred Delca and Dr. Peter Buck, the subway remained family-owned until April 2024 when private equity firm Roark Capital acquired it in a deal worth $9.6 billion.
Former CEO John Chidsey resigned at the end of the year, with EMEA president Carrie Walsh intervening as intervening as interim CEO.
Meanwhile, in 2023, sales at the same stores around the world increased by 6.4%. Sales in North America increased by 5.9%the brand's US footprint continues to be contracted. This is an indication that even amid modernization and growth overseas, the domestic challenges of the subway remain unresolved.
