There’s something about the convenience of restaurants that makes us willing to shell out more money.
A sandwich you could make at home for $2 might cost $12 when you buy it outside the house. But in exchange for the extra $10, you’ve saved yourself a boatload of time.
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You didn’t have to go to the supermarket to pick up bread, lettuce, mayo, meat, and cheese. You didn’t have to find something to wrap the sandwich in. You didn’t have to deal with cleaning up afterward, which could be the biggest impediment of all.
Related: Dunkin’ shares new summer menu that’s not just a Starbucks copy
Still, consumers are having a harder time paying for the convenience of restaurant food these days. And the reason boils down to stubbornly elevated inflation.
Athough inflation has cooled moderately these past couple of years, it’s still a problem. Living costs are up broadly, and a lot of people have exhausted their savings.
When money is tight, it’s nonessentials like restaurant food that consumers have to cut back on. There’s simply no other choice.
Fast-food restaurants are hurting
At a time when consumers are cutting back on restaurant spending, you’d think fast-food establishments would be pretty immune.
People rely on fast food for quick meals on the go. And fast food is usually a lot less expensive than what’s served at fast-casual restaurants.
Related: Dairy Queen makes surprising move to jump on fast-food trend
But even fast-food restaurants are struggling, given recent changes in consumer habits. And a good number of popular chains have been forced to close locations due to declining sales.
In 2024, Wendy’s revealed plans to shutter 140 restaurants as part of a broad plan to eliminate underperforming locations. And in April, Jack in the Box shared plans to close up to 200 underperforming restaurants to bolster its balance sheet.
Subway’s ‘secret’ closures have consumers spooked
Subway is one of the biggest fast-food chains in the U.S. But in recent years, its footprint has shrunk.
The sandwich giant once had more than 27,000 U.S. locations. But new data shows that there are now more like 20,000 Subway restaurants in operation.
Related: KFC’s newest restaurant concept has customers obsessed
In 2024, Subway shuttered 630 U.S. restaurants. But the closures didn’t end there.
Recently, Subway made the decision to shut down three New Jersey locations in different parts of the state.
Interestingly, no announcement was made by Subway regarding the closures. It seemed like one day those restaurants were up and running, and the next — poof, they were gone.
Subway’s sales have declined in recent years, due in part to shifting consumer priorities and increased competition.
Menu fatigue is also an issue.
While it’s certainly convenient to run in for a sandwich you don’t have to make yourself, Subway’s menu is hardly innovative. And the chain hasn’t gone out of its way to launch exciting new menu items.
Plus, while other fast-food chains are getting increasingly savvy with their digital ordering and delivery programs, Subway seems to be stuck in the dark ages. So it’s not so surprising to see the chain’s footprint shrink.
More Fast Food & Restaurant News:
- Starbucks makes shocking pricing move customers will love
- Bankrupt restaurant chain offers new deal, stiff drink
- New Taco Bell menu items combines multiple classics
Still, the fact that Subway restaurants seem to be dropping without warning is alarming. And if the company can’t find ways to entice customers, this recent string of seemingly secret closures could be the first of many we see in 2025.
That’s bad news for consumers who still love a good Subway sandwich, even if it’s the same old sandwich they’ve been eating for years.
