Subway’s U.S. Struggles: Sales Lag, Closures Mount Amid Franchisee Frustration
Subway, one of the world’s largest quick service restaurant brands with over 37,000 locations in more than 100 countries, is facing significant headwinds in the United States. According to Circana’s 2026 restaurant ranking, Subway locations generate about $500,000 in annual sales on average—significantly lower than some competing sandwich chains. This financial underperformance is driving franchisee discontent and raising questions about the brand’s domestic strategy.
The company’s “Fresh Forward” redesign initiative and promises of strategic relocations are being criticized as insufficient. Franchise operators argue that they cannot make money at current sales levels, and the redesigns ring hollow without addressing this fundamental problem. As a result, Subway has been closing thousands of restaurants across the United States, even as competitors like McDonald’s plan major global expansions. The contrast highlights Subway’s struggle to maintain its footprint and profitability in its home market.
Subway restaurants are owned and operated by a network of more than 20,000 dedicated entrepreneurs and small business owners—franchisees who are committed to delivering the best guest experience in their local communities. However, with average annual sales lagging, many are finding it increasingly difficult to sustain their businesses. The brand, a registered trademark of Subway IP LLC, continues to serve freshly made-to-order sandwiches, wraps, salads, and bowls to millions of guests daily, but the U.S. market remains a pain point.
As Subway navigates these challenges, all eyes are on whether the company can reverse the trend and support its franchisees effectively. The coming months will be critical for the sandwich giant’s domestic future.
Shimanta Das 
