The Subway near the corner of Main Avenue and 10th Street closed Aug. 31 and it will not be reopening.
Franchise owner Michael Cobb declined to say why his restaurant was closing.
This brings the total number of Subways in La Plata County down to six, but it might still be too many.
Steve Redding, who owns two Subway franchises in town, has been in the Subway franchise business locally for 14 years, and he has noticed the impact new stores have made over the years.
Three new Subway stores have opened since he has been in business, and after the Ignacio Subway opened in February, he noticed a reduction in sales.
It is a nationwide problem for Subway franchise owners because the corporation has 27,000 locations, more outlets than any other retailer, The Wall Street Journal recently reported.
“You just end up cannibalizing existing stores,” Redding said.
The downtown Subway location was also competing with all the restaurants along Main Avenue, and it has had challenges over the years, he said.
“There is too many great places to eat in Durango for lunch,” he said.
Recently, Schlotzsky’s and Jimmy John’s both opened near Main Avenue, adding to the list of competitors in the fast-sandwich niche.
Hair Fusion Salon and Spa will be expanding its 10th Street location into the space formerly occupied by Subway, said Holly Whatcott-Woolverton, owner of the salon.
The business will be taking down walls between the two spaces to make way for the expansion she said.
mshinn@durangoherald.com
This story has been updated to clarify that Hair Fusion Salon and Spa will be expanding.