McDonald’s largest competitor in the US closes more than 700 locations

Subway’s Closures Bring McDonald’s One Step Closer to U.S. Dominance

Last year, McDonald’s edged closer to becoming the top fast-food chain in the U.S. after its main competitor shuttered hundreds of locations.

While McDonald’s holds the title of the world’s largest fast food chain, Subway actually tops the charts in the U.S. with nearly 19,000 outlets, compared to McDonald’s 14,000.

However, Subway quietly closed 729 restaurants in the U.S. last year, marking the 10th consecutive year of reductions in its store presence. This brings the total to 18,773, all managed by franchisees.

A spokesperson for Subway mentioned this trend is part of a strategy aimed at focusing on securing restaurants in optimal locations, emphasizing real estate and operations to bolster franchisee success.

Subway hasn’t immediately provided further comments on the situation.

Despite being the leading fast-food company in the U.S., Subway’s patterns indicate a notable decline over the past decade.

In 2015, Subway boasted over 27,000 locations, but it has since seen more than 8,000 closures.

The chain was acquired by private equity firm Rourke Capital last year for around $9.6 billion.

In July, Subway appointed Jonathan Fitzpatrick, a well-regarded industry veteran with past experience at Burger King, as its new CEO.

To combat inflation’s impact on customers, Subway, like many fast-food restaurants, is leaning into more affordable pricing.

In April, it introduced its first value menu, featuring 15 items priced under $5, including a $4.99 6-inch sub reminiscent of the discontinued $5 Footlong deal.

McDonald’s, on the other hand, is leading the charge in value menus with its popular Meal Deal Combos and a new Under $3 Menu, which includes items like Sausage McMuffins and 4-Piece Chicken McNuggets.

Both chains are also looking to attract younger customers through the introduction of new specialty drinks.

Meanwhile, Subway is not just retreating; it is expanding internationally, having opened over 1,000 new locations worldwide last year and planning to add 12,000 more in the coming years.