The REAL Reason Subway Is Failing in 2025 – What Went Wrong?

Subway's Downfall: How the Sandwich Giant Lost Its Bite

From $5 Footlongs to Franchise Failures—What Happened to Subway?

There was a time when Subway was king. Whether it was the iconic $5 Footlong, its health-conscious branding, or its rapid expansion, Subway was the go-to fast-food spot for millions. But fast forward to 2025, and the sandwich giant is struggling to survive.

Franchisees are closing stores, profits are plummeting, and customers are turning away in droves. So, what went wrong?

The truth is, Subway's downfall isn’t just about one mistake—it’s a perfect storm of scandals, bad business practices, and failing to keep up with modern consumer expectations. From questionable ingredients to skyrocketing prices, Subway has lost the trust of its customers, and its efforts to recover might not be enough.

Let’s break down why Subway is failing in 2025—and whether the brand has any hope of survival.

1. The Jared Fogle Scandal—A PR Nightmare

For 15 years, Subway’s entire image was built around one man—Jared Fogle, the ordinary guy who lost 245 pounds by eating only Subway sandwiches. His success story turned Subway into a health-conscious fast-food alternative, and for years, it worked like magic.

But in 2015, everything collapsed. Jared was arrested and convicted of crimes so disturbing that Subway cut all ties immediately.

🛑 Why This Hurt Subway:
✅ Subway’s entire "healthy" image was tied to Jared.
✅ After his conviction, Subway lost all credibility as a healthy option.
✅ Sales plummeted, and the brand was left without a new strong marketing identity.

🔍 The Fallout: Subway never recovered from the scandal, and it marked the beginning of its decline.

2. The Food Scandals: Fake Bread & Mystery Tuna?

In 2020, the Supreme Court of Ireland ruled that Subway’s bread wasn’t actually bread—because its sugar content was way too high. According to Irish food regulations, bread cannot contain more than 2% sugar relative to flour weight to be classified as a staple food. Subway’s bread? 10% sugar—five times the legal limit!

This revelation destroyed Subway’s credibility as a healthier option. Customers who thought they were choosing a nutritious sandwich over a greasy burger realized they had been eating what was essentially cake.

This wasn’t just an embarrassing legal loss—it reinforced growing suspicions that Subway’s food wasn’t as "fresh" or as healthy as advertised. And unfortunately for Subway, this was just one of many scandals that would push customers away.

3. The Subway Tuna Lawsuit

If the bread scandal wasn’t enough, a 2021 lawsuit claimed Subway’s tuna wasn’t actually tuna. Lab tests from UCLA found that 19 out of 20 samples contained "no detectable tuna DNA."

🛑 Why This Hurt Subway:
✅ Customers started questioning everything about Subway’s food quality.
✅ The lawsuits damaged trust, even though Subway denied the claims.
✅ Subway had to launch "Tuna Facts" campaigns—but once you're convincing people your food is real, you've already lost.

4. Subway's "Healthy" Claims? Not So Fast…

For years, Subway was marketed as the "healthier" fast food option—but the reality? Not much better than McDonald's.

📊 A 2013 study found:

• The average Subway meal had 955 calories (McDonald's averaged 1,000).
• Subway meals contained three times the recommended sodium levels.
• Jared’s weight loss? It only worked because he ate strict portions—something most customers don’t do.

💡 The Takeaway? Subway’s entire brand was a lie—and when people realized it, they left.

5. The Death of the $5 Footlong & The Price Problem

Remember when you could get a Footlong for $5? Those days are long gone.

• 2018: Subway officially killed the $5 Footlong.
• 2024: Footlongs now cost $7-$15, depending on location.
• Customers don’t think Subway’s food is worth that much.

A former franchisee said it best:
👉 "Subway forgot that their niche was okay food at a price anyone could handle."

🛑 Why This Hurt Subway:
✅ The $5 Footlong was iconic—killing it meant losing millions of customers.
✅ For $15, customers can get a better sandwich elsewhere.
✅ Subway is now too expensive for what it offers.

6. A Franchise Model That's Destroying Itself

If you’ve ever walked down the street and seen two Subways on the same block, you’ve witnessed Subway’s biggest business mistake.

Unlike competitors, Subway allowed franchisees to open stores literally anywhere—even next to existing locations.

📉 The Result?

• Oversaturation: Too many locations, not enough customers.
• Franchisees fighting each other for the same business.
• Mass closures—over 1,000 locations shut down in 2024 alone.

💰 On top of that, Subway charges some of the highest franchise fees in the industry:

• 8% royalty fee (McDonald’s charges 4-5%).
• 4.5% advertising fee—which funds ads starring Tom Brady & Serena Williams instead of helping franchisees.

🛑 Why This Hurt Subway:
✅ Franchise owners are losing money, leading to store closures.
✅ Subway expands recklessly, ruining its own brand.
✅ Newer competitors (Jersey Mike’s, Firehouse Subs) are now taking over.

Can Subway Save Itself? Or Is It Too Late?

Subway isn’t totally giving up—in recent years, it has tried to fix its mistakes:
✅ Freshly Sliced Meat: Stores now slice their own meat instead of using pre-sliced, bagged deli meat.
✅ Store Renovations: Outdated locations are being redesigned.
✅ International Growth: Over 750 new stores opened worldwide in 2022.
✅ New Ownership: In April 2024, Subway was sold to Roark Capital for $9 billion—with promises of a brand overhaul.

💭 But Will It Work?

Maybe—but the numbers tell a different story:
❌ Subway had 34% of the sandwich market in 2017—in 2025, it's down to 23%.
❌ Same-store sales dropped 8.7% on the East Coast in mid-2024.
❌ Other regions saw up to a 10% drop in revenue.

In August 2024, Subway called an emergency meeting with 19,000 franchise owners—because things are that bad.

💡 Final Verdict: Subway is desperately trying to save itself, but unless it fixes its pricing, food quality, and franchise model, it may never reclaim its former glory.

Will Subway Survive? Or Is It Game Over?

As you step out of Subway, tossing half of your overpriced footlong in the trash, you wonder—how did we get here? Subway was once unstoppable, with a simple formula: decent food, cheap prices, and fast service. But today, it’s a shell of its former self.

The brand has been chasing past success, making desperate attempts to win back customers. But with rising prices, questionable ingredients, and franchisees struggling to stay afloat, Subway’s problems go deeper than a marketing campaign can fix.

Sure, new ownership might turn things around—but will customers give Subway another chance, or have they already moved on to better alternatives like Jersey Mike’s, Firehouse Subs, or local sandwich shops?

One thing’s for sure: Subway’s next few years will determine if it makes a comeback or fades into fast-food history.

What do you think? Is Subway done for, or can it recover? Drop your thoughts below!

Stay tuned to Woke Waves for more deep dives into food industry trends and business shake-ups!

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