While Competitors Shut Doors, Subway Is Still Growing

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While Starbucks is closing stores and McDonald’s is focusing its expansion efforts abroad, Subway, by far the largest fast-food chain, with 22,000 U.S. locations, is adding 800 this year.

Don Fertman, director-development for the sandwich shops, said there’s now about one Subway for every 13,800 people in the U.S., although some markets, such as Philadelphia and Boston, are “under-served.” He said he thinks Subway can take the ratio to one restaurant for every 12,000 people in the U.S. while revving up growth overseas, where it now has 8,000 outlets.

A major factor helping Subway sprawl is its low overhead. The shops don’t need room for large kitchens, so there are outlets in hospitals, appliance stores, a smelting plant and even a church where the pastor wanted to provide job training for neighborhood kids. Subway is also the largest chain within Wal-Mart.