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Subway closes 729 U.S. stores as shrinking footprint pressures workers

Subway shed 729 U.S. stores last year, pushing its count to 18,773 and putting hours, transfers and nearby jobs under pressure for workers.

Marcus Chen··2 min read
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Subway closes 729 U.S. stores as shrinking footprint pressures workers
Source: restaurantdive.com

Subway shed 729 U.S. stores in 2025, a drop that pushed the chain to 18,773 domestic locations and left hourly workers facing fewer nearby jobs, thinner schedules and more uncertainty about whether a neighborhood shop will still be open next month.

The company’s latest franchise disclosure document, released April 30, showed the steepest annual decline since 2021. From the start of 2021 to the end of 2025, Subway’s U.S. footprint fell by 3,417 restaurants, down from 22,190 locations. That kind of contraction does not just change a corporate map. It can force crew members to scramble for transfers, lengthen commutes when a store closes, and squeeze the remaining shops as they absorb more sales with the same or fewer people on shift.

AI-generated illustration
AI-generated illustration

The pressure starts with unit economics. Circana estimates Subway’s average unit volume at about $500,000, and Subway does not disclose its own per-store sales in the disclosure document. Restaurant Dive has said the chain’s long slide reflects oversaturation and weak sales at many locations, which helps explain why closures keep landing inside a system that is still enormous but no longer growing the way it once did. In the past three years, Subway has closed 1,645 units.

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Source: static.independent.co.uk

Franchisee friction has not eased the strain. Earlier in 2025, Subway revised its Sub Club loyalty program after operators criticized the original offer, which gave customers a free footlong after buying three other footlongs. The current version gives a $2 discount for every 400 points earned. The company also said in 2022 that it was shifting toward larger multi-unit operators, yet prospective franchisees have remained wary of low margins and weak return on investment.

Subway U.S. Footprint
Data visualization chart

That caution matters to restaurant workers because financial stress at the franchise level often shows up on the floor first. The North American Association of Subway Franchisees has said remodels can cost at least $100,000 per store, a level of spending that can push operators to close weaker sites instead of investing in them. A large Subway franchisee filed for bankruptcy in 2026, underscoring how tight parts of the system remain even as Subway signed a 20-year master franchise agreement to open nearly 4,000 restaurants in mainland China. For workers in the United States, the lesson is blunt: a smaller Subway means fewer backup jobs, more pressure on surviving stores, and less stability in markets where restaurant work is already thin.

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