News

Subway closing many U.S. stores, but unsure how many

April 27, 2018

The world's largest QSR chain is getting smaller, but Subway leadership said that the exact number of stores closing this year remains unquantified. A Subway spokesperson said that the exact number is as yet uncertain. 

Likewise, he said the chain does not have a "list of locations" slated for closing, since every restaurant is independently owned and operated and, as such, decisions about closures are made by the franchisees. 

"Subway restaurants are 100 percent franchisee-owned and operated, and our commitment to the franchisees is to work with them to make each restaurant more successful," he said. "Subway is the world's largest restaurant chain and we are confident we will remain the industry leader."

"In North America we are implementing an aggressive revitalization plan, which we expect to result in the closing, consolidation or relocation of a few hundred locations in 2018. Simultaneously, outside of North America, we expect to open more than 1,000 new restaurants this year. 

"Looking out over the next decade, we anticipate having a slightly smaller, but more profitable footprint in North America and a significantly larger footprint in the rest of the world."

A story in the Washington Post quoted several industry analysts and consultants who said the chain's faltering sales, particularly over the last year, are due to a kind of "perfect storm" of vastly increasing competition, franchisee woes, market demands for local sourcing, and a move away from the traditional lunch meats that have long been a Subway staple.

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