Brianna ParkerSubway is a quick-service restaurant chain based in Milford, Connecticut, operated by Doctor’s Associates. The company was founded in 1965 as Pete’s Super Submarines by Fred DeLuca and Peter Buck. In 1968, the founders renamed itSubwayand opened the first West Coast Subway in Fresno, California, ten years later.
The fast-food chain expanded globally after setting up shop in Bahrain in 1984 and Brighton, UK, in 1996. With37,540 locations in 100 countries, Subway is the world’s largest single-brand restaurant chain. In 2021, Subway had around 5,000 employees and made $10.2 billion in the US. Its sales exceeded projections by $1.4 billion.[1]
Subway is renowned for its submarine sandwich. In 2021, the chain introduced new sandwiches, including Turkey Cali Fresh and All-American Club. But it also serves salads, wraps, paninis, doughnuts, muffins, and cookies.
The company licenses its brand to over 20,000 entrepreneurs and collects 8% of revenue from each franchise restaurant. With 21,147 locations in the US, Subway is the nation’s largest fast-food chain. But its lead is shrinking.
The sandwich giant closed 999 US restaurants in 2019, 1,609 in 2020, and 1,043 in 2021. Many of its franchisees only open for 80 hours per week and fail to capture breakfast, lunch, and dinner sales. Stiff competition from McDonald’s, Burger King, Wendy’s, KFC, and Starbucks contribute to Subway’s challenges.[2]
Here is an in-depth analysis of top Subway’scompetitors and alternatives:
1. McDonald’s
Year founded: 1948
Headquarter: San Bernardino, California
McDonald’s is the world’s largest fast-food chain, with more than 39,000 locations across over 100 countries. The chain operates 12,775 restaurants in the US alone. In 2021, McDonald’s had around 375,000 employees and generated $23.2 billion in revenue with a net income of $7.5 billion. [3]
Both McDonald’s and Subway offer baked goods like doughnuts, muffins, paninis, and cookies. But McDonald’s is renowned for its Big Macs and Chicken McNuggets.Subway markets its submarine sandwich as a healthier alternative to McDonald’s meaty menu items.
In 2021, McDonald’s increased the prices of its top-selling food items to offset rising food and labor costs. This move can undercut its competitive advantage over Subway. McDonald’s is the top Subway competitor and alternative. [4]
2. KFC
Year founded: 1953
Headquarter: Louisville, Kentucky
KFC is one of the largest fast-food chains globally. It is a subsidiary of Yum! Brands, along with Taco Bell and Pizza Hut. In 2021, KFC operated 22,621 locations in around 150 countries.
KFC is renowned globally for its fried chicken. But the chain also offers sandwiches, baked goods, and salads, similar to Subway’s menu items. In Feb 2021, KFC introduced a new chicken sandwich in its US restaurants.
This menu item competes with Subway’s submarine sandwich. The fast-food chain recorded a surge in demand for its tacos and fried chicken in 2021, increasing its online revenue. KFC is the top alternative to Subway for fried chicken.[5]
3. Burger King
Year founded: 1953
Headquarter: Miami-Dade County, Florida
Burger King is a fast-food restaurant chain renowned for its tasty burgers.It is a subsidiary of Restaurant Brands International and operates around 18,000 locations across over 100 countries.In 2021, Restaurant Brands reported a 37% increase in revenue to $1.44 billion.
Both Burger King and Subway offer soft drinks, salads, desserts, and French fries. Burger King’s top-selling item is the Whopper, while Subway is famous for submarine sandwiches. In 2021, Burger King introduced a hand-breaded fried chicken sandwich. Burger King is the best alternative to Subway for burgers. [6]
4. Wendy’s
Year founded: 1969
Headquarter: Columbus, Ohio
Wendy’s is a leading quick-serve chain. The fast-food chain has 7,000 restaurants globally.In 2021, Wendy’s had around 13,300employees and generated $1.897 billion in revenue. [7]
Unlike Subway, Wendy’s operates company-owned and franchised restaurants. This blended business model gives Wendy’s more control over its operations. Both Wendy’s and Subway offer freshly-prepared salads. But Wendy’s also serves classic American foods and signature items like chili, baked potatoes, and frosty desserts. Wendy’s is one of the top Subway competitors.
5. Starbucks
Year founded: 1971
Headquarter: Seattle, Washington
Starbucks is the world’s largest coffeehouse chain. The quick-service brand operates33,833 coffee shops across over 80 countries. In 2021, Starbucks had around349,000 employees globally. Its full-year revenue increased by24% to $29.1 billion. [8]
Starbucks is a premier retailer of coffee, espresso, and cappuccino. But it also serves baked goods such as pastries, muffins, shortcakes, and sandwiches, similar to Subway’s menu items.
As of Oct 2021, Starbucks was the second-largest US fast-food chain with 15,444 US restaurants. It added 116 new locations in 2021. Starbucks is a formidable Subway competitor.
6. Dunkin’ Donuts
Year founded: 1950
Headquarter: Canton, Massachusetts
Dunkin’Donuts is a quick-service restaurant that operates in more than 12,900 locations across 42 countries. The restaurant chain specializes in coffee and donuts but also serves other foods. In 2021, Dunkin had around 270,000 employees and made $1.4 billion in revenue.
Dunkin’ and Subway offer baked goods. They are the go-to restaurants for freshly-baked muffins, donuts, croissants, paninis, and sandwiches. Both fast-food chains customize their seasonal menus to enhance culinary experiences.
In Feb 2022, Dunkin’ introduced its seasonal menu for spring, including salted caramel cream latte, chocolate croissant, and roasted tomato toast. Dunkin’ is the best alternative to Subway for freshly baked goods. [9]
7. Arby’s
Year founded: 1964
Headquarter: Atlanta, Georgia
Arby’s is a fast-food restaurant dubbed “America’s second-largest sandwich chain.”It is owned by Inspire Brands, which operates Baskin-Robbins, Buffalo Wild Wings, Jimmy John’s, and Dunkin’. In 2021, Arby’s reported a 6% increase in revenue to $4.5 billion.
Arby’s offers deli sandwiches that compete against Subway’s submarine sandwiches. The chain operates about 3,400 restaurants in the US. In May 2022, Arby’s added a hamburger to its menu for the first time.
The “Wagyu Steakhouse Burger” is a 52% blend of American Wagyu and 48% ground beef. It weighs 6.4 ounces and costs $5.99.Arby’s is the best alternative to Subway for mouthwatering hamburgers.[10]
8. Jimmy John’s
Year founded: 1983
Headquarter: Champaign, Illinois
Jimmy John’s is an American sandwich chain owned by Inspire Brands. Its parent company also owns Baskin-Robbins, Buffalo Wild Wings, Arby’s, Dunkin’, and Sonic. In 2021, Inspire Brands operated over 32,000 restaurants and accumulated around $30 billion in revenue.
Jimmy John’s has around 45,000 employees working across 2,755 locations. The chain serves subs and deli sandwiches, making it a direct competitor to Subway. In Feb 2022, Jimmy John’s opened its first drive-thru-only store in Florida with two lanes and pick-up points.
The company will replicate this design in other locations across the US to attract health-conscious consumers. Jimmy John’s is one of the top Subway competitors in the sandwich market. [11]
9. Jersey Mike’s Subs
Year founded: 1956
Headquarter: Manasquan, New Jersey
Jersey Mike’s Subs is an American submarine sandwich chain, officially known as A Sub Above, LLC. The chain has over 2,000 locations across the US and serves sliced grilled subs on freshly-baked bread. In 2021, Jersey Mike’s franchise had 19,000 employees and generated $974.1 million in revenue.
In Mar 2022, Jersey Mike’s and its customers raised a record-breaking $20 million to help US athletes attend the 2022 Special Olympics Games in Orlando, Florida. All its 2,000 restaurants accepted donations throughout the month and donated100% of sales on Mar 30, 2022.
This noble campaign is enough to poach some customers from Subway. Jersey Mike’s is one of the best alternatives to Subway for delicious subs and sandwiches. [12]
10. Panera Bread Company
Year founded: 1981
Headquarter: St. Louis, Missouri
Panera Bread is a bakery-café and fast-casual restaurant chain owned by JAB Holding. The chain operates around 2,000 locations in the US and Canada. In 2021, Panera Bread had about 10,000 employees and generated $2.8 billion in revenue.
Both Panera and Subway offer sandwiches, muffins, donuts, cakes, paninis, croissants, and other baked goods. But Panera also serves delicious fried chicken like KFC. In Jul 2021, Panera Bread filed for an IPO.
The company will go public in 2022 via SPAC company, USHG Acquisition Corp. Panera Bread is a worthy alternative to Subway for baked goods. [13]
11. Chipotle Mexican Grill, Inc.
Year founded: 1993
Headquarter: Newport Beach, California
Chipotle Mexican Grill is a fast-casual restaurant chain that spun off McDonald’s about 30 years ago. The chain operates 2,950 restaurants in the US, Canada, the UK, France, and Germany. In 2021, Chipotle had around 100,000 employees and reported a 26.1% increase in revenue to $7.5 billion.
ChipotleservesTex-Mex foods, including tacos and burritos. But it also offers salads and baked goods, similar to Subway’s menu items. Chipotle is the world’s largest company-owned fast-food chain, while Subway is the leading fully-franchised restaurant brand. They operate on the extreme ends of the business model spectrum.
In 2021, Chipotlewas recognized in Forbes’ America’s Best Employers and Fortune’s Most Admired Companies. Chipotle Mexican Grill is one of the best alternatives to Subway for freshly-made salads. [14]
12. Tim Hortons
Year founded: 1964
Headquarter: Oakville, Canada
Tim Hortons is Canada’s largest quick-service restaurant chain. It operates 4,846 restaurants in 14 countries andserves coffee and baked goods.In 2021, Tim Horton’s had around 1000 employees.
Tim Hortons offers donuts, croissants, muffins, biscuits, paninis, and other baked goods featured on Subway’s menu. In Nov 2021, Tim Hortons collaborated with Justin Bieber for a co-branded launch of limited edition Timbiebs Timbits donuts.
This partnership boosted Tim Hortons’ sales by 10% in Q4 2021, after a decline of 11% over the same period in 2020. Tim Hortons is one of the top alternatives to Subway for tasty donuts. [15]
13. Domino’s Pizza
Year founded: 1960
Headquarter: Ann Arbor, Michigan
Domino’s is one of the largest pizza chains globally. The pizza specialist operates around 14,000 restaurants worldwide. In 2021, Domino’s had 260,000 employees and generated $2.47 billion in revenue.
Dominos has a cult-like following among pizza lovers. But the chain also serves sandwiches, pasta, desserts, and chicken wings. Its sandwiches compete against Subway’s sub.
In 2021, Dominos introduced new pizza with 34 toppings on a single crust. These unique offering combine tomato sauce, basil, pepperoni, Hokkaido camembert, and seafood mix to enhance consumers’ experience. Domino’s is one of the top Subway competitors. [16]
14. Quiznos
Year founded: 1981
Headquarter: Denver, Colorado
Quiznos is an American franchised fast-food restaurant owned byREGO Restaurant Group. The chain specializes in toasted submarine sandwiches. In 2021, Quiznos made less than $100 million in sales from around 400 locations in the US and globally.
Quiznos declined in recent years due to stiff competition. In 2021, Quiznos’ owners implemented a comprehensive rebranding plan focused on consumer preferences, new tastes, dining options, and drive-thru experiences. The newly rebranded Quiznos and its updated menu can threaten Subway. [17]
15. Taco Bell
Year founded: 1962
Headquarter: Irvine, California
Taco Bell is a fast-food chain specializing in Tex-Mex foods.It is a Yum! Brands subsidiary and operates around 7,300 locationsglobally. In 2021, Taco Bellhad around 175,000 employees.
Taco Bell serves Mexican-inspired foods like quesadillas, tacos, nachos, and burritos to about 2 billion customers annually.
In Aug 2021, Taco Bell relaunched its Tex-Mex breakfast menu. This offering can poach customers from Subway. Taco Bell and Subway are indirect competitors due to differences in their menu items. Taco Bell is the go-to Subway alternative for Mexican-inspired foods.[18]
16. Chick-fil-A
Year founded: 1946
Headquarter: Hapeville, Georgia
Chick-fil-A is a fast-food chain that offers chicken sandwiches, salads, and other food items. The company operates in the US, Canada, and the UK. In 2021, Chick-fil-A had 2,730 restaurants and generated $16 billion in sales.
The main competitive advantage for Chick-fil-A is its excellent customer service. The founder adopted the phrase “my pleasure” to differentiate Chick-fil-A from fast-food chains with subpar customer service.
Chick-fil-A staff replied “my pleasure” whenever customers thanked them. This brand catchphrase is part of Chick-fil-A’s allure. Chick-fil-A is a customer-friendly alternative to Subway.[19]
17. Pizza Hut
Year founded: 1958
Headquarter: Plano, Texas
Pizza Hut is one of the largest pizza chains globally and a subsidiary of Yum! Brands. The fast-food chain operates18,703 restaurants worldwide. In 2021, Pizza Hutemployed around 350,000people. [20]
Pizza Hutofferspizzas and Italian-American desserts and dishes, such as Buffalo wings. But the ever-increasing number of health-conscious consumers threatens Pizza Hut’s revenues, profits, and existence in the future.
In 2021, the pizza chain implemented a campaign to regain lost market share. However, the labor shortage impeded its comeback in the US market. Pizza Hut can challenge Subway in the fast-food sector.
18. Popeyes
Year founded: 1972
Headquarter: Miami, Florida
Popeyes is afast-food restaurantchain owned by Restaurant Brands. It specializes in fried chicken but also offers other foods.In 2021, Popeyes had around 6,000 employees andoperated 3,451 restaurants.
Popeyes reported a 2% drop in sales in 2021 due to stiff competition from new sandwiches. More consumers switched from chicken to sandwiches introduced in the first half of 2021.
In Jun 2021, Popeyes launched its first-ever rewards program to boost revenue. This strategy minimized the impact on its bottom line. Popeyes is one of the best alternatives to Subway for fried chicken. [21]
19. Costa Coffee
Year founded: 1971
Headquarter: Dunstable, UK
Coca-Cola-owned Costa Coffee is one of the largest coffee brands globally. The British coffee chain has over2,500 company-owned and franchised coffee stores in the UK. In 2021, Costa Coffee had around 16,000 employees. Its franchises employ more than 10,000 people globally.
In 2021, Costa Coffee was recently awarded The Nation’s Favorite Coffee Shop by UK consumers. The coffeehouse also partnered with Marks & Spencer to provide fresh sandwiches, salads, vegan-friendly dishes, and gluten-free baked products in its locations.
These food items are Subway’s top-selling offerings. With the expanded menu, Costa is now the top alternative to Subway in the UK market. [22]
20. Papa John’s Pizza
Year founded: 1984
Headquarter: Louisville, Kentucky
Papa John’s is a pizza delivery and take-out chain. It operates more than 4700 company-owned and franchised pizzerias in about 45 countries globally. In 2021, Papa John’s had around 70,500 employees and reported a 14.1% increase in revenues to $2.1 billion. [23]
Papa John’s only offers pizzas for home delivery and take out. So, it is an indirect competitor for Subway. In 2020, the company hired 30,000 workers to exploit the increased demand for home-delivery services. Papa John’s is one of the top indirect Subway competitors.
21. Pret a Manger
Year founded: 1983
Headquarter: London, UK
Pret is a British sandwich shop with around464 locations globally. The chain offers freshly-made sandwiches, soups, coffee, and foods. In 2020, Pret a Manger generated $320 million in revenue.
Pret a Manger operates 324 sandwich shops in several UK cities and about 140 locations spread across Europe, the US, and Hong Kong. In Jan 2022, the owners doubledPret’s standby facility reserved to £200m. The additional funds strengthened the chain’s financial position in 2022.
Both Pret and Subway offer freshly made sandwiches in the UK, Europe, and the US. But Pret is a household name in London, making it the top Subway competitor in the UK’s sandwich market.[24]
22. Jack in the Box
Year founded: 1951
Headquarter: San Diego, California
Jack in the Box is the fifth-largest burger chain in America. This restaurant chain operates about 2,200 locations in 21 states. Most of its burger shops are on the West Coast. In 2021, Jack in the Box had around 22,000 employees andmade$1.14 billion in revenue. [25]
Jack in the Box offers Mexican-inspired foods through its subsidiary Qdoba with 700 restaurants. The chain blends beef, chicken, and soy-based proteins to create low-cost tacos.
Although Subway has more locations, Jack in the Box outperforms the sandwich giant on the West Coast thanks to its cult-like following. Jack in the Box is one of the topSubwaycompetitors on the West Coast.
23. Sbarro
Year founded: 1956
Headquarter: Columbus, Ohio
Sbarro is an Italian-American pizzeria chain. It offers NY-style pizza sold by the slice, appealing to students and young professionals in US cities. In 2021, Sbarro’s US operations generated $185 million in revenue.
Sbarro serves Italian-American cuisines and pizzas in more than 600 locations in 26 countries globally. But most of its restaurants are in the US.
In 2021, the fast-food chain opened seven restaurants in Columbus. The new joints were established in malls and convenience stores to deliver pizzas closer to the consumer. Sbarro is one of the best alternatives to Subway for pizza lovers. [26]
24. Hungry Jack’s
Year founded: 1971
Headquarter: Sydney, New South Wales, Australia
Hungry Jack’s is a franchise of Burger King Corp, with a strong market presence in Australian cities. Competitive Foods Australia owns and operates over 400 Hungry Jack’s restaurants. In 2021, the fast-food chain had around 16,500 employees.
AllBurger King restaurants in Australia operate under Hungry Jack’s. This flexible approach reduces bureaucracy, enhancing operational efficiency.
For example, a 2021 recent report found that Hungry Jack’s handled Australia’s supply chain crisis better than McDonald’s. Hungry Jack’s is one of the top Subway competitors in Australia. [27]
25. Luckin Coffee
Year founded: 2017
Headquarter: Xiamen, China
Luckin Coffee is one of the fastest-growing restaurant brands in China. The fast-food chain serves coffee, tea, and baked goods similar to Subway’s menu. In 2021, Luckin Coffee had about 22,000 employees working across its 4,507 locations.
In May 2022, Luckin Coffee posted its first-ever profitable quarter after a 90% increase in revenue. The company ended the period with 6,580 stores in China, about 1,000 more than Starbucks’ 5,650 outlets.
Luckin Coffee is now the largest coffee chain in China. But the new kid on the block still has a long way to go to the top of Subway’s competitors’ list. [28]
References & more information
- Subway (2022, Feb 22). Subway Record-Setting 2021 Sales to Fuel 2022 Positive Momentum. PRNewswire
- Kosman, J. (2022, Apr 28). Subway lost more than 1,000 US locations last year, filings reveal. New York Post
- McDonald’s Corp (2022, Jan 27). McDonald’s Reports Fourth Quarter and Full Year 2021 Results. PRNewswire
- Creswell, J. (2022, Jan 27). McDonald’s, now with higher prices, topped $23 billion in revenue in 2021. The New York Times
- Praveen, P. (2022, Feb 9). KFC-parent Yum Brands sales were boosted by demand for tacos and fried chicken. Reuters
- Paramasivam, P. (2021, Jul 31). Burger King U.S. sales power Restaurant Brands’ results beat. Reuters
- Wendy’s Company (2022, Mar 1). Wendy’s Reports Fourth Quarter and Full Year 2021 Results. PRNewswire
- Starbucks Corp (2021, Oct 28). Starbucks Reports Record Q4 and Full Year Fiscal 2021 Results. Starbucks Press
- Dunkin’ (2022, Feb 23). Dunkin’ Introduces New Items to Shake Up Spring Menu. Dunkin’ Press
- Valinsky, J. (2022, May 23). Arby’s is selling a fast-food staple it’s never offered before. CNN Business
- Meisenzahl, M. (2022, Feb 3). Jimmy John’s opened its first drive-thru-only restaurant in Florida. Business Insider
- Jersey Mike’s Subs (2022, Apr 5). Jersey Mike’s Subs Raises $20 Million in March For 2022 Special Olympics USA Games. PRNewswire
- Lucas, A. (2021, Nov 8). Panera Bread announces SPAC investment and will return to the public markets through an IPO. CNBC
- Chipotle Mexican Grill (2022, Feb 8). Chipotle Announces Fourth Quarter and Full Year 2021 Results. PRNewswire
- Meisenzahl, M. (2022, Feb 15). Justin Bieber’s collaboration with Tim Hortons led to a boost in sales. Business Insider
- Bondarenko, V. (2022, Mar 7). Domino’s Does Something Brilliant or Terrible to Its New Pizza. The Street
- FC Editor (2021, Aug 12). Quiznos shifts to a rebranding effort. Fast Casual
- Lucas, A. (2021, Oct 28). Taco Bell’s parent earnings beat, fueled by strong demand for KFC. CNBC
- Meyersohn, N. (2022, Apr 9). Why do Chick-fil-A workers always say “my pleasure.” CNN Business
- Lucas, A. (2022, Feb 9). Yum Brands misses earnings estimates as higher costs weigh on profits. CNBC
- Doughman, E. (2022, Feb 19). Popeyes ties 2021 sales decrease to chicken competition. Wattag.net
- WCP Editor (2022, Jan 27). Costa Coffee was voted ‘The Nation’s Favorite’ for the 12th consecutive year. World Coffee Portal
- Papa John’s International (2022, Feb 24). Papa John’s Announces Fourth Quarter and Full Year 2021 Financial Results. Business Wire
- Butler, S. (2022, Fed 18). Pret a Manger in cash call on shareholders as finances is under pressure. The Guardian
- Lock, S. (2022, Jan 24). Revenue of Jack in the Box Inc. from 2009 to 2021. Statista
- Eaton, D. (2021, Jan 12). Sbarro opens a new Columbus site, with more coming in 2021. Biz Journal
- Sharples, S. (2022, Jan 12). Hungry Jacks, McDonald’s, Red Rooster, and Oporto struggling with Omicron surge. News Au
- Toh, M. (2022, May 25). Luckin Coffee is back and bigger than Starbucks in China. CNN Business
- Featured image by Erik Mclean
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