It's not Subway: Another major U.S. chain announces massive restaurant closures

Subway, the world's largest sandwich chain, is facing a crisis: in 2024, it closed 631 of its restaurants in the United States. It followed a declining trend since its peak in 2015, when it had more than 27,000 locations. Although it remains the chain with the most establishments in the country, its decline is evident.

The closures respond to a change in consumer habits. Customers are seeking faster, healthier, and more convenient options.

Subway has tried to adapt with revamped menus and more healthy options, but it has yet to stop its decline. Despite this, it remains an important brand, although increasingly smaller.

TGI Fridays follows Subway's path

However, Subway is not the only chain facing this challenge. TGI Fridays, known for its casual food and cocktails, is also in a similar situation.

The chain announced that it will close more than 180 establishments across the United States. By April 2025, its number of locations will be reduced to less than 100 in the country. This comes after TGI Fridays filed for bankruptcy in November 2024.

TGI Fridays's restructuring aims to reduce its debt and adapt to market changes. In recent years, the chain has struggled to keep its relevance against new trends in the restaurant sector.

Meanwhile, Subway has done the same with its focus on health and convenience, although its strategy has not yet been enough to prevent the loss of locations.

Causes of the massive closures

Both chains face similar problems. Fast and healthy food has gained popularity, leaving behind the traditional models of heavier and more expensive food.

Subway, known for its customized sandwiches, has been surpassed by competitors offering lighter and more convenient options. TGI Fridays, with its traditional menu and large portions, has also struggled to attract younger consumers.

The two brands have tried to adapt. Subway has improved its menu with options like the "Meal of the Day" and has bet on technology for online orders. TGI Fridays, meanwhile, has revamped its menu and modernized its image to attract a younger audience. However, these efforts have not been enough to prevent the massive closures.

The future of large restaurant chains

The closures of Subway and TGI Fridays are just a reflection of a broader trend in the restaurant industry. Large chains are facing fierce competition from smaller, more agile brands that adapt more quickly to new consumer demands. Customer preferences have changed, and traditional chains must evolve to stay relevant.

Subway and TGI Fridays are trying to renew themselves to survive, but the question is whether their efforts will be enough to reverse the trend. Both are betting on healthier options, digital services, and a more modern image. However, it remains to be seen if this will be enough to stop the decline of their market presence.

What strategies are Subway and TGI Fridays adopting?

Subway has revamped its menu with healthier options and increased its digital presence. This includes promotions like its "Meal of the Day," which aims to attract more customers through affordable prices. Additionally, Subway is focusing on improving its home delivery service.

TGI Fridays is completely revamping its menu and betting on a more modern image to attract a younger audience. Additionally, the chain is investing in digital marketing to better reach consumers through social media.