MIAMI – A new report reveals that Subway closed hundreds of locations in 2024 – the first time in 20 years that the chain had fewer than 20,000 locations.
This is according to the company Restaurant Business, which obtained the Miami-based sandwich giant’s franchise disclosure documents.
Subway closed hundreds of locations
Starbucks still remains largest US chain
Dig deeper:
Still, Subway remains the largest U.S. restaurant chain by unit count.
In fact, it still operates 2,600 more locations than the next biggest, Starbucks, which finished 2024 with just under 17,000 coffee shops.
RELATED: Subway is revamping itself by going old-school with deli slicers
Last year’s unit volumes increased just 1% compared with 2023, so the average Subway unit lost customers after factoring in 4% restaurant menu price increases. And it remains low compared with its rivals and other sandwich concepts. Subway’s average-unit volume was lower than all but 19 other restaurant chains on the Technomic Top 500 last year.
The company generated $9.5 billion in system sales in the U.S. last year, down 3.8% compared with 2023.
Subway sold to private equity firm
The backstory:
In 2023, Subway agreed to sell itself to private equity firm Roark Capital.
Roark beat out a late challenge from a rival bidding group led by TDR Capital and Sycamore Partners, which also submitted a final bid of more than $9 billion, Reuters reported, citing people familiar with the matter.
The private equity firm has several noted restaurant brands in its portfolio under Inspire Brands, including Arby’s, Buffalo Wild Wings and Jimmy John’s.
“This transaction reflects Subway’s long-term growth potential, and the substantial value of our brand and our franchisees around the world,” Subway CEO John Chidsey said at the time.
The Source: The information for this story was provided by Restaurant Business, which obtained the Subway’s franchise disclosure documents and used data from Technomic. FOX Business also contributed. This story was reported from Los Angeles.
