9 Fast-Food Chains Quietly Closing Stores in the US
With increased prices and customers cutting back in recent months, fast food chains are facing a decrease in sales, with some companies able to weather the storm better than others. Those unable to bunker down and simply ride out the current economic climate could be in trouble, and many are facing the reality of locations shutting down. It's never a good feeling when your favorite restaurant closes, but for some fast-food chains, that feeling has been faced numerous times in recent years.
Closing locations is not the only sign of a fast-food chain under duress. It's also worth mentioning that closing locations, just like opening them, are a normal part of operations, but anything beyond the typical scope of activity can raise concerns. Restaurants may also be forced to adjust other business practices to keep customers returning. Actions like major modifications to its menu or rebranding could be signs a fast-food chain is falling apart, or at least on a fast track to doing so. Early signs, like underperforming quarterly and annual reports, could signal such drastic actions further down the road. Considering those factors, the coming years could be a challenge for the following fast-food restaurant chains.
Starbucks
Despite price hikes, Starbucks has struggled to show an increase in sales in recent quarters. This led the coffee chain to make drastic changes to its menu and business practices in early 2025. This includes reducing its menu by 30%, including beverage and food items. Starbucks made other adjustments to win over customers, like removing the extra charge for nondairy milk and offering free refills to those who choose to dine in-store with a mug or glass.
KFC
While some restaurant closures are foregone conclusions that don't tend to catch customers off guard, others can be rather abrupt and be cause for some concern. That happened in summer 2024 when KFC suddenly closed multiple locations in Illinois. Rather than one or two restaurants closing, last summer saw nearly one dozen locations shutter in one region. Along with other fast food chains in this lineup, KFC could face rough waters if the pattern continues.
BurgerFi
BurgerFi filed for Chapter 11 bankruptcy protection in September of 2024 after its preceding quarterly earnings could not be reported due to "significant adverse developments that occurred with respect to the company's business and liquidity," per Nation's Restaurant News. There were other warning signs leading up to these headwinds, including the abrupt closure of several restaurant locations earlier in the year.
Steak 'n Shake
Steak 'n Shake is no stranger to adversity, with the fast-food burger chain closing 200 locations from 2018 to 2025, according to QSR Magazine. Following a major overhaul of the senior management team, Steak 'n Shake is hopeful it can turn things around in 2025. Even if the tides turn, Steak 'n Shake owner Sardar Biglari shared with QSR Magazine, "it will take some time to spur traditional franchise growth after several years of decline."
Hardee's
Hardee's has exhibited a pattern of regular closures over the past couple of years. The fast food chain closed multiple locations in 2023 in the Midwest and South, with more closing in 2024 across Central Illinois. At the time, Hardee's did not disclose the reasons behind the closures, but there were enough to raise concerns.
Noodles & Company
Despite a reported improvement in customer satisfaction, Noodles & Company isn't without its challenges. The fast casual company with a menu focused on pasta and noodle dishes faced the closure of nearly 20 locations in summer 2024, many of which were suffering from low sales and contributed in total to a $2 million loss combined. The company hoped that these closures could stop the bleeding and re-focus on the performing locations.
Pizza Hut
Pizza Hut's recent struggles seemingly came out of nowhere, with 19 locations abruptly closing in the summer of 2024. Those restaurants were located in Ohio and Indiana, with at least some of the closures tied to an ongoing legal battle between Pizza Hut and one of its franchisees. Struggles with franchised locations aren't new for Pizza Hut, with its largest U.S. franchisee filing for bankruptcy in 2020. Without drastic signs of improvement, Pizza Hut could be in survival mode.
Popeyes
Popeyes may be a consumer favorite for fried chicken, but the fast-food chain has struggled to be equally impressive financially. The chain's comparable sales in the U.S. decreased by nearly 4% during the third quarter, Restaurant Brands International CEO Josh Kobza revealed during an earnings call in November of 2024. That said, Popeyes' net restaurant sales were up 3.6%, and systemwide sales decreased 0.8% that same quarter. With a re-focus on value menu items, Popeyes is hopeful it can turn the ship around.
Papa John's
Fast-casual pizza has been a tough market to compete in, and all signs point to Papa John's struggling more than most in 2024. The restaurant chain reported an overall 3% decline in revenue last year, with its third quarter of 2024 marking three straight quarterly declines and its worst since the second quarter of 2019. Urgency is the name of the game, as mentioned by CEO Todd Penegor. "We are laser-focused on strengthening our foundation in the near-term, while positioning the company to capitalize on opportunities to drive success and value creation over the long-term," Penegor shared in November.
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