Fresh off the heels of my latest YouTube video I wanted to continue the conversation about the fall of Subway. At its peak in the early 2010s, Subway had over 40,000 restaurants worldwide—more than McDonald’s. But fast forward a decade, and the story is very different. Store closures, declining sales, and fading cultural relevance have pushed Subway from dominance into damage control.
So what the heck happened?
At the heart of Subway’s downfall is its aggressive expansion strategy. Franchisees found it easy to open stores due to low startup costs, but Subway didn’t place tight limits on proximity between franchises. The result? Market saturation. Locations began to cannibalize each other’s sales, leading to diminishing profits for many franchise owners.
By focusing on quantity rather than sustainable growth, Subway grew too fast, too soon, with little regard for long-term stability.
In the early 2000s, Subway’s “Eat Fresh” branding resonated with a health-conscious public in contrast to McDonald’s. Jared Fogle (before his scandal) became the face of its weight-loss marketing. But over time, new fast-casual competitors with an eye on quality like Chipotle and Jersey Mike’s opened the door to a new era of higher quality chain fast food that offered a new option: better fast food(albeit more expensive).
Subway, by contrast, stuck with pre-sliced deli meats and bread that didn’t live up to the to this new upscale trend. As consumer expectations evolved, Subway stayed largely the same.
While competitors innovated with menus and digital experiences, Subway’s core offering barely changed for years. Even their attempts at innovation—like flatbreads, wraps, or the controversial “$5 Footlong”—felt like half-measures. The chain’s “Fresh Forward” redesign, introduced in 2017, was too little, too late for many franchisees who couldn’t afford the remodel costs.
Meanwhile, mobile ordering, app experiences, and third-party delivery options lagged behind industry leaders.
The brand’s image has been rocked by scandal and criticism. The Jared Fogle scandal in 2015 was a major public relations disaster. Then came the infamous legal battles over whether their bread was legally bread in Ireland (due to sugar content), and questions about the authenticity of its tuna.
These stories, even when resolved, chipped away at public trust and made Subway the butt of late-night jokes rather than the face of healthy fast food.
Subway franchisees have long voiced frustration over corporate policies. From being forced to participate in costly promotions (like the $5 Footlong) to high royalty fees and increasing supply costs, many franchise owners felt squeezed. This tension led to lawsuits, closures, and a growing number of operators abandoning the brand altogether.
When the people running your stores no longer believe in the company, decline is inevitable.
In recent years, Subway has made attempts to rebrand. They’ve introduced new menu items, launched a loyalty app, and unveiled ambitious international expansion plans. There’s also been a push to sell the company, signaling that new leadership might bring fresh strategy.
But regaining cultural relevance—and consumer trust—won’t be easy. Subway needs more than a new sandwich lineup or a revamped logo. It needs a bold, authentic reinvention. The question is: after so many missteps, is it already too late?
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