Locals criticised the restaurant in the city of Rincon, Georgia, for putting up a sign reading: “Our subs don’t implode".
Several people took to Twitter to vent their frustration at the joke.
Amanda Butler wrote: “Not only is it distasteful, it’s just sad. Do better.”
Another person added: “How tacky, people have no thought of the family members of those who died, disgusting.”
Five men died after the Titan submersible imploded as it descended to the wreck of the Titanic in the Atlantic Ocean last month.
British-Pakistani businessman Shahzada Dawood, 58, and his son Suleman, 19, were among those on board the vessel.
British adventurer Hamish Harding, 58, French explorer Paul-Henri Nargeolet, 77, and American sub owner Stockton Rush, 61, also died.
A manager at the Subway branch confirmed the sign has been taken down following complaints.
Subway’s head office blamed the franchise operator and promised it would not happen again.
A spokesperson for the sandwich chain told US media: “We have been in contact with the franchise about this matter and made it clear that this kind of comment has no place in our business.”
