Subway has been in steady decline for a decade.
When you build your brand around a spokesperson who goes to jail after being convicted of heinous crimes, it’s hard to refocus the discussion on how big his pants used to be.
If Tony the Tiger mauled the soccer team he appears to coach in commercials, Frosted Flakes might still be “great,” but the cereal would be hit with some collateral damage.
You can’t blame Subway’s woes on Jared Fogle’s 2015 conviction, but the chain’s decline did begin falling from its peak in 2015.
Now, another Subway franchisee, Gerold Shelton, has closed all of his locations. That’s a drop in the bucket compared to the chain’s overall decline, but it’s a sign that its troubles remain ongoing.
Subway loses another franchisee
Shelton, who has been a Subway franchisee since 2021, has closed all five of his stores.
“I’ve been a franchisee with Subway since 2021, and I still believe in Subway and want them to succeed, but unfortunately it just won’t be with me,” Shelton told a local news outlet.
It remains possible, however, that the corporate office could re-franchise or reopen the stores itself.
“I had great teams in place at all five of my locations, and I truly appreciate all their time, hard work and energy they put in to build what we had. I am surrendering the locations to Subway corporate in order to speed up the process to get them reopened as soon as possible,” he said.
This closure follows two other Subway franchisees that recently filed Chapter 11 bankruptcy.
- 43-unit operator MTF Enterprises filed for Chapter 11 earlier this year after it faced financial difficulties arising from Merchant Cash Advance loans, according to court documents filed on Pacer Monitor.
- In 2024, River Sub, a 48-unit operator, declared bankruptcy following a wrongful death case, according to court documents filed on Pacer Monitor.
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Subway has been shrinking
Subway’s business always seemed to be driven by offering low prices. As someone who grew up in Massachusetts, an area filled with local sub shops, I can’t see any reason to eat at a chain sub shop aside from price.
Restaurant Business Editor in Chief Jonathan Maze shared his thoughts on the chain’s decline.
“Its fundamental flaw has always been too many locations and a too-long focus on low prices, which has made its prices these days seem too expensive. Franchisees are closing stores. Others have cut back on staff or taken other steps in a bid for survival, such as refusing to accept discounts. That just makes matters worse,” he wrote.
More Restaurants:
- Hooters closing more restaurants in bankruptcy comeback
- These are the True Food Kitchen locations closing in Chapter 11
- Oprah-backed chain closes 12 restaurants for good after filing Chapter 11
RTM Nexus CEO Dominick Miserandino agrees that the sandwich chain has built too many locations.
Subway’s problem is that it spent years putting restaurants everywhere. At some point, you can’t have two stores fighting over the same sandwich customer. Closing weaker locations can actually make the remaining franchisees healthier.
Subway’s decline has been steep
- Subway lost a net 729 U.S. restaurants in 2025, its largest annual decline since 2021. It ended the year with 18,773 locations, according to its 2026 franchise disclosure document.
- The chain has lost 3,417 net locations since the start of 2021. Its U.S. restaurant count fell from 22,190 to 18,773 over that period.
- Subway has shrunk by more than 8,300 net locations since 2015. It peaked at approximately 27,100 U.S. restaurants before its long decline began.
- The decline has continued for 10 consecutive years. Subway’s U.S. store count fell every year from 2016 through 2025.
- Low sales per restaurant remain a challenge. Circana estimates Subway’s average unit volume at roughly $500,000 annually, considerably below major competitors such as Jersey Mike’s.
- Sources: Restaurant Dive, QSR Magazine
Subway still operates 18,773 locations, according to its FDD.
