14 • July | August 2026 • abasto.com • IN THE NEWS BY ABASTO S ubway closures rattled the fast-food industry in 2025. The sandwich giant shut a net 729 U.S. locations — its steepest sin- gle-year drop since 2021. That staggering number marks the chain’s 10th consecutive year of do- mestic decline. The revelation comes from a franchise disclosure docu- ment released April 30. Furthermore, the total U.S. sto- re count has now fallen to roughly 18,773 locations. Just a few years ago, that figure sat above 22,000. Several business-focused media out- lets analyzed the impact of the massive closure of Subway locations in 2025. Closures the Industry Can’t Ignore The chain peaked at more than 27,000 U.S. restaurants in 2015. Since then, Subway has consistently shed hundreds of locations annually, according to QSR Magazine. Between 2016 and 2025 alone, Su- bway closed a net 8,345 restaurants nationwide. Restaurant Dive notes that the figure alone would rank among the five largest chains in the United States. Meanwhile, the company opened 499 new locations in 2025. Never- theless, closures significantly ou- tpaced new additions, resulting in a steep net loss. Profits Rise Even as the Footprint Shrinks Despite the dramatic contraction, Subway’s financials tell a surprising story. The company reported $688 million in net income in 2025, accor- ding to the franchise disclosure filing reviewed by FOX Business. That figure represents a sharp jump from $397 million in the prior year and just $15 million in 2023. Consequent- ly, profitability has surged even as the physical footprint contracts. However, total franchise revenue moved in the opposite direction. It fell more than 6% to $767 million, signaling ongoing pressure on the franchise model itself. Additionally, the filing identified roughly 792 locations temporarily closed as of Dec. 31, 2025. Subway expects many of those shuttered units to reopen in 2026. The “Rightsizing” Strategy Driving the Closures Subway executives frame the wave of closures as a delibera- te, strategic move. The com- pany calls it “rightsizing”, a calculated effort to place res- taurants in optimal locations. “In the U.S., Subway is fo- cused on ensuring restaurants are in the right locations with the real estate, visibility, and operations that set franchisees up to succeed long-term,” a Su- bway spokesperson told QSR Magazine. The company adds that the strategy appears to generate real results. Operational impro- vements are showing up across the system, with restaurant evaluation scores and Google review scores both reaching two-year highs, Subway said. In essence, the chain favors fewer, stronger-performing stores over a bloated network of underperforming units. Subway Closures Hit 700+ U.S. Locations in One Year