Subway, the fast-food chain that was considered one of the biggest in the country and dominated the market with over 27,000 stores at the time of its peak, reportedly shut down over 600 locations in 2024. The store closures are a significant indicator of the challenges the chain is facing. Subway, according to some reports, will now focus on international market expansion and revamping stores. If you are someone who wants to know more about Subway closing over 600 stores in 2024, this article is for you. It brings you everything you need to know about the store closures and the potential future plans of the chain.
What Is The Reason For Subway Closing More Than 600 Stores In 2024?
Sunway’s journey and growth have never been anything less than an inspiration for startups for the coming generations. However, the fast-food chain has witnessed a significant decline in customer traffic in the previous years. The reports suggest Subway closed over 631 stores across the country, bringing down its total to 19,502 stores. This is the lowest mark the chain has hit since its peak in 2015.
There are various reasons why Subway may have gone ahead with these closures. Shifting consumer preferences and their search for healthier options are one of the main challenges for food chains. The rapidly increasing operational costs of Subway are also one of the reasons why it may have opted for closure. The company is also focusing on revamping its stores for a better consumer experience and attracting the younger generation. It is also using a data-driven strategy for the placement of restaurant locations.
Subway Closing 600+ Stores Leaves Hundreds Of Employees Jobless
Subway’s sudden decision to close over 600 stores severely impacted its workforce, which heavily relied on the food chain for its source of income. Over 200 employees in Oregon were left without jobs after the food chain suddenly closed over 23 locations. Many found themselves without jobs or severance packages. One of the managers revealed how his experience with the company was completely blindsided which reveals the lack of transparency in decision-making.
Subway’s New Strategy For Global Expansion
While its dominance in the US markets seems it be shrinking, Subway has reported significant growth in its global markets. It now has over 37,000 locations across the globe, and the company plans to optimize its position in the global markets. The food chain rapidly alters its menu to cater to the varying tastes and preferences. This includes introducing local ingredients in its menu, catering to various cultures. This approach is an attempt by the company to continue contracting international customers and retain its position in the global market.
Potential Future Plans Of Subway
According to the current situation, Subway’s future seems uncertain. The potential future plans of Subway may include pursuing global growth and maintaining its position in the international markets. The closed locations reflect the challenges the company is facing currently in the domestic markets. In such situations, focusing on international growth seems like a feasible option. The company is also using “Smart growth” and revamping processes to regain its position in the domestic markets. It seems like the food chain is not ready to give up its position as a significant player in the global fast food market.
