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Starbucks has shaken up the fast-food landscape, surpassing Subway to claim the number two spot for the largest restaurant chain in the United States in terms of sales, and quantity of locations. This news comes despite Subway, at one point, boasting a significantly larger number of locations.
According to Technomic, a research and consulting firm in the food industry, Subway maintained its position as having the most restaurants globally, for years, but Starbucks passed the sandwich-focused chain in 2023 with the addition of 3,000 more locations.
In terms of revenue generation, (and now expansion rate), Starbucks has stolen Subway’s spot, and reigns supreme with only one another fast food giant in front of them. According to QSR Magazine’s rankings, Starbucks raked in $28 billion in sales within the U.S. in 2022, dwarfing Subway’s $10.3 billion.
The Top 2 Fast Food Chains In The World
Of course, the largest fast food chain in the world shouldn’t come as a surprise – the ubiquitous McDonald’s, has over 41,000 locations compared to Starbucks 38,000+, and Subway’s 36,000+…worldwide.
And the crazy thing is that, McDonald’s sales reached a staggering $120 billion in 2023…which means Starbucks is still almost $100 billion short of reaching their competitors’ mark.
The dethroned Subway, has faced some battles in recent years which likely contributed to locations closing, including; Increased competition, higher prices, and concerns about the quality of its offerings taking a toll on sales.
Starbucks’ focus on premium coffees and drinks allows them to command higher prices compared to Subway’s primarily lower-quality ingredients, and menu. It makes sense that the only other competitor poised to challenge McDonald’s is also a brand with as strong of a brand identity. Starbucks has positioned itself as “the” destination for on-the-go coffee, with a social atmosphere, and trending seasonal products that have taught customers to be willing to pay a bit more for the experience.
The tactic employed by Starbucks from the get-go…has always been centered around a pricier model, and products. This also happens to be the one area that jeopardizes McDonald’s loyal customer base. Rising prices, and disappearing value menu’s have been stoking anger among patrons, and now McDonald’s is being forced to pay attention by experimenting with bigger burgers, and adding value meal deals to appease value-seekers before it’s too late.
With customers placing a greater emphasis on quality and experience, Starbucks has managed to capitalize on this trend. It will be interesting to see how Subway responds to their defeat, and whether they can reclaim their former position.
Now that we’ve covered the largest fast food chains, there’s a whole other topic centered on “the best” chains around. Check out the chains that have been voted in polls, to be the best in quality within the US.
