Many people have questions surrounding the future prospects of Subway, a once-dominant player in the fast-food industry. Known for its iconic footlong sandwiches and customizable menu options, Subway has faced a series of challenges in recent years. Despite these hurdles, the question remains: is Subway going out of business? To answer this, let’s take a closer look at the brand, its struggles, and its plans for the future.

Subway Overview

Subway started as a small sandwich shop in Bridgeport, Connecticut, in 1965. It quickly grew into a giant, becoming the largest fast-food chain by the number of locations. You likely remember the catchy $5 footlong jingle that captured everyone’s attention. With its fresh ingredients and cost-effective menu, Subway appealed to a wide audience. However, the company is now in a period of transition, working to regain its once-strong market position.

Is Subway Going Out of Business?

The simple answer is no, Subway is not going out of business immediately. However, the company is undeniably facing tough times. A mix of internal challenges and external pressures has led to rumors about its future. Yet, Subway continues to operate and serve millions of customers around the globe. It’s taking steps to overcome a variety of issues, from declining sales to public relations crises, and remains a significant player in the fast-food sector.

Key Reasons Behind This

Subway’s struggles are multifaceted, starting with a decline in sales dating back to 2012. The franchise model meant that many stores opened too close to one another, leading to competition within their own network. This “cannibalization” of sales frustrated both franchisees and the company. Furthermore, the $5 footlong promotions, while popular with customers, proved financially unsustainable for many franchise owners. Subway’s public image took a hit with the scandal involving Jared Fogle, its former spokesperson. This debacle, combined with weak sales, industry competition, and poor strategic decisions, explains why Subway is in its current position.

You can learn more about Subway’s changing business status here.

Is Subway Facing a Financial Crisis?

Subway’s revenues have been declining, and it has undergone large-scale store closures. Despite these setbacks, it is not in the midst of a crisis that will see it collapse overnight. The sale to private equity firm Roark Capital suggests that there is belief in the company’s revival. Roark Capital has experience with similar brands like Dunkin’ and Arby’s, providing a knowledge base that could be immensely beneficial. While Subway’s financial future is not secure, steps are being taken to stabilize the business.

What Does Subway Do?

At its core, Subway offers freshly made sandwiches with a wide variety of toppings, sauces, and breads, allowing customers to customize their orders. It differentiates itself with its emphasis on healthier options, such as salads and sandwiches made with whole grain breads. However, its mission now involves more than selling sandwiches. The brand is revamping its image, menu, and customer experience to attract new customers and retain existing ones. Subway is moving forward with a strategic plan intended to address both its financial and operational issues.

Has Subway Closed Some Stores?

Yes, Subway has shut down several of its locations in recent years. For the first time in 2016, it closed more U.S. stores than it opened, continuing with over 1,000 closures in both 2018 and 2019. This trend was exacerbated by the COVID-19 pandemic, which took a toll on the fast-food industry as a whole. While these closures seem alarming, they are part of a broader strategy to manage resources better and focus on high-performing locations.

Is Subway Still in Business?

Absolutely, Subway is still very much in business. Though its path forward is challenging, the company is committed to bouncing back. It continues to serve millions of sandwiches daily and is continuously working on new strategies to appeal to its customers. Under the new ownership of Roark Capital, efforts are being made to modernize the brand, tackle its challenges, and secure a brighter future.

Conclusion

Subway isn’t going anywhere just yet. The challenges it faces are significant, but not insurmountable. With new ownership, strategic changes, and a commitment to adaptation, Subway is in a transitional phase aiming for recovery and reinvention. While the company is not immediately going out of business, the next few years will be crucial in determining its long-term success. By understanding and addressing its issues with solid strategies, Subway has the opportunity to reclaim its stronghold in the fast-food industry.