Subway shrinks to less than 20K locations for first time in decades

New York Post - May 1st, 2025

Subway, once a titan of American fast food, has seen its US presence fall below 20,000 locations for the first time in two decades, marking a stark decline from its peak of over 27,000 in 2016. The franchise has closed about 7,600 stores in recent years, with notable losses in 2018, 2020, and 2021. Despite this domestic contraction, Subway remains the largest US restaurant chain by unit count. The company cites a 'Smart Growth' strategy focused on optimizing its US footprint through strategic relocations and partnerships with robust franchisees. Meanwhile, Subway has set its sights on international expansion, with commitments for over 10,000 new global locations secured through master franchise agreements, including entries into new markets like Paraguay and Mongolia.

Subway's global ambitions are underscored by its efforts to modernize its brand and drive digital sales, with the introduction of its Fresh Forward 2.0 prototype. This initiative features enhanced design elements and service layouts, which have been implemented in over 20,000 restaurants worldwide. The chain's international growth has been bolstered by nontraditional venues such as Walmart and travel centers, contributing to its status as the third-largest restaurant chain globally. Despite positive global and North American sales trends, Subway's shrinking US footprint highlights ongoing domestic challenges, even as the brand undergoes significant transformations under new ownership by Roark Capital and interim leadership from Carrie Walsh.

Subway Fast Food Industry Restaurant Closures International Expansion Roark Capital Carrie Walsh Franchise Agreements Smart Growth Strategy

Story submitted by Fairstory

RATING

7.6

Fair Story

Consider it well-founded

The article provides a comprehensive overview of Subway's current market position, balancing the narrative between its domestic challenges and international growth ambitions. It relies on credible sources and presents data in a clear and structured manner, making it accessible to readers. However, the article could benefit from a wider range of perspectives to enhance its balance and depth. While it effectively captures the timeliness and public interest of the topic, the potential for controversy and engagement could be further explored by delving deeper into the underlying challenges faced by franchisees and the implications of the company's strategic decisions. Overall, the article is informative and relevant, offering valuable insights into the evolving landscape of the fast-food industry.

Accuracy

The story is largely accurate, with most claims supported by authoritative sources. The claim that Subway ended 2024 with 19,502 US locations aligns with QSR Magazine's reporting, confirming the accuracy of this specific data point. The article's assertion of a multiyear contraction is also supported by historical data, showing a reduction from over 27,000 locations in 2016 to the current figure. However, there are discrepancies in the reported total number of Subway locations, with some sources suggesting slightly higher figures for 2024-2025, indicating a need for careful verification of these numbers. Additionally, the acquisition of Subway by Roark Capital and leadership changes are not directly confirmed by the cited sources, requiring further investigation.

Balance

The article presents a balanced view of Subway's current situation, highlighting both the challenges in the US market and the company's international growth strategy. It acknowledges the closure of numerous US locations while also emphasizing Subway's expansion plans in global markets. However, the article could have included more perspectives from franchisees or industry analysts to provide a fuller picture of the challenges faced by the company. The focus on Subway's strategic plans and spokesperson statements may inadvertently favor the company's narrative, suggesting a slight imbalance.

Clarity

The article is generally clear and well-structured, with a logical flow of information. It effectively outlines Subway's challenges and strategic responses, making it easy for readers to follow the narrative. The language is neutral and straightforward, aiding comprehension. However, some complex details, such as the specifics of the 'Fresh Forward 2.0' prototype and the strategic implications of the international expansion, could be explained in more detail to enhance reader understanding.

Source quality

The article relies on credible sources such as QSR Magazine, which is a respected publication in the restaurant industry. The use of direct statements from Subway's spokesperson adds to the reliability of the information presented. However, the lack of diverse sources, such as independent industry experts or franchisee testimonials, limits the depth of the analysis. The article would benefit from a broader range of authoritative voices to enhance its credibility.

Transparency

The article provides some transparency by citing data from QSR Magazine and including direct quotes from Subway's spokesperson. However, it lacks detailed explanations of the methodology used to gather the data, such as how the number of locations was verified or the criteria for 'Smart Growth' strategy. Additionally, the article does not disclose any potential conflicts of interest or the basis for certain claims, such as the acquisition details and leadership changes.