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Subway Store Closures Signal Major Shift in Fast-Food Chain’s U.S. Strategy
Business & Finance

Subway Closing Stores Across the U.S. Amid Strategic Overhaul

The sandwich chain confirms multiple store closures as part of its evolving business strategy

Shereen DF
Last updated: May 3, 2025 1:37 pm
Shereen DF
Published May 3, 2025
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Subway closing stores has become a growing reality across the United States as the global sandwich giant undergoes a significant transformation aimed at stabilizing its business and reimagining its brand. Once boasting the most locations of any fast-food chain in the world, Subway is now trimming its footprint, shuttering hundreds of underperforming stores in a move executives say is necessary for long-term growth.

According to the company, the closures are part of a broader plan to “modernize operations, improve profitability, and better meet consumer expectations.” While Subway has not publicly released an exact number of closures for 2025, industry reports suggest that the chain has steadily closed thousands of locations over the past several years. Between 2016 and 2023 alone, more than 3,000 stores were reportedly shuttered in the U.S., a trend that appears to be continuing this year.

“Some closures are inevitable as we adapt to market conditions,” a Subway spokesperson told USA Today. “Our focus is on relocating stores to higher-traffic areas and supporting franchisees with the tools they need to succeed in a rapidly changing foodservice landscape.”

The challenges facing Subway are not unique. The fast-casual and quick-service restaurant sectors have been dealing with shifting consumer preferences, rising labor and supply costs, and increased competition from trendier brands offering fresher and more customizable options. In recent years, Subway has tried to counteract these pressures with menu revamps, digital upgrades, and store redesigns, including its “Fresh Forward” initiative.

Still, many franchisees have voiced frustration, citing high fees, limited flexibility, and inconsistent support. “We’ve been asking for help for years,” said one longtime franchisee in the Midwest, who requested anonymity. “Closing stores isn’t a surprise. What’s surprising is how long it took to acknowledge the model needed to change.”

Despite the closures, Subway says it remains committed to revitalization. The company was acquired by private equity firm Roark Capital in 2023, and executives have since hinted at more aggressive changes ahead, including international expansion, innovation in product lines, and a new loyalty program designed to increase repeat visits.

As Subway closing stores becomes a more visible part of its restructuring, the focus now turns to what’s next. Will these moves be enough to turn around the brand’s fortunes? Or is this just another chapter in the ongoing reshuffling of America’s fast-food landscape?

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TAGGED:fast food industryfranchise newsquick-service restaurantsrestaurant closuresRoark CapitalSubway 2025 strategySubway closing stores
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