These 6 Fast-Food Chains Are Losing Customers Fast, Data Shows
It's been a tough time for fast-food and fast-casual restaurant chains, with customers choosing to cook at home instead of spending what's become a very expensive meal at a fast-food restaurant. "On one hand, it's more expensive to operate restaurants due to higher wages and food costs," retail expert Mitchell Olsen told The U.S. Sun. "On the other hand, it's becoming increasingly difficult to pass those higher operating expenses on to diners with ever-increasing menu prices. Consumers are starting to push back against the high cost of dining out by thinking twice about that appetizer or going to a restaurant in the first place." Here are 6 fast-food chains closing down locations due to low profits.
Wendy's
Wendy's closed down 140 "underperforming" locations by the end of 2024. "Our focus is on building new restaurants because we know they deliver well over the average of these poor-performing restaurants," CEO Kirk Tanner said, according to NBC4. "We, overall, want the best restaurants for the customers and that customer experience we want to deliver."
Denny's
Denny's management announced plans in October 2024 to close down 150 locations throughout 2025, but now it looks like more than originally planned—often restaurants that are too old to be remodeled or are just not worth the cost of staying open. "Some of these restaurants can be very old. So when you think of a 70-year-old plus brand, you have a lot of restaurants that have been out there for a very long time," executive vice president and chief global development officer Stephen Dunn said via USA Today.
Pizza Hut
Pizza Hut shut down three Peoria-area restaurants in early 2025, according to the Journal Star, who noted all three locations are owned by EYM Pizza of Illinois, LLC. The publication reported that EYM Pizza and Pizza Hut, LLC filed legal complaints against each other in 2024, and EYM filed for bankruptcy.
KFC
The KFC in 202 North Main Street in Statesboro, Georgia, is closing down after 36 years. "It really saddens us to be forced to close a restaurant that has been such a landmark in Statesboro for so many years," said Dana Sanders, director of operations for the Hodges Management Company, owner of the restaurant. "Like me, many people have very fond memories of eating Original Recipe Chicken in this KFC for most of their lives. My parents brought home buckets of chicken from here as far back as I can remember and I'm really going to miss it."
McDonald's
McDonald's is still recovering from a less-than-ideal 2024, after a listeria outbreak negatively impacted McDonald's sales. "Our performance in 2024 did not meet our expectations," McDonald's CEO Chris Kempczinski said on a call with analysts. "It was a big year, and at times it felt like McDonald's was part of almost every major news story, reflecting the reach and visibility of our brand."
Red Robin
Red Robin is closing 15 stores in 2025, but the brand is hopeful it can turn things around. "[While] we're pleased with the progress we've made under the North Star plan, we have two key priorities in 2025 to continue our comeback," Chief Executive G.J. Hart said during its fourth-quarter earnings call. "First, further improve our traffic trends. Second, gain efficiency in our operations to deliver growth in restaurant and corporate level profitability."
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