20 Popular Restaurant Chains That Closed Hundreds Of Locations In 2024
Anyone who loves to dine out has likely had the misfortune of learning that one of their favorite eateries is going out of business. After all, there's plenty of uncertainty in the restaurant industry, and not even the most famous and successful chains are necessarily immune to difficulties.
McDonald's, for example, has dealt with rare drops in sales and a wave of consumer backlash over its prices in 2024. Coffee giant Starbucks has fallen in popularity, reporting three consecutive quarters of same-store sales declines. Additionally, a number of major restaurant chains have shuttered locations this year, totaling hundreds of closures across those prominent brands.
The reasons for these restaurant closures varied. Some chains decided to eliminate select underperforming stores to improve the health of their overall businesses, while others opted to shutter dozens of restaurants to stay afloat amid bankruptcy. Whatever the cause, the bottom line is that a lot of restaurants shut their doors for good this year.
Read on for the scoop on 20 restaurant chains that closed hundreds of locations in 2024.
In This Article:
- Wendy's
- Dickey's Barbecue Pit
- Denny's
- Shake Shack
- KFC
- Noodles & Company
- Buca di Beppo
- Hooters
- BurgerFi
- Red Lobster
- Rubio's Coastal Grill
- Cracker Barrel
- Applebee's
- TGI Fridays
- Boston Market
- Mod Pizza
- PDQ
- Outback Steakhouse
- Hardee's
- Tijuana Flats
Wendy's
Wendy's has been on a huge expansion kick in recent years, opening 500 new locations across 2023 and 2024 alone. This year, however, has also brought a significant number of store closures to the fast-food giant.
Wendy's executives announced earlier this fall that they planned to close 140 locations by the year's end. The closing units are all "outdated" stores in "underperforming trade areas" with lower-than-average annual sales and operating margins, Wendy's President and CEO Kirk Tanner said during an Oct. 31 earnings call.
According to Tanner, Wendy's plans to replace the shuttered stores with new locations that can bring in improved sales and profitability. It has also added new restaurants at a fast enough pace in 2024 to balance out the closures and expects to continue expanding in the years ahead.
Dickey's Barbecue Pit
America's largest barbecue chain isn't quite as large as it used to be. Dickey's Barbecue Pit revealed in a franchise disclosure document (FDD) this past fall its operators had closed 97 locations during its 2024 fiscal year, which ended on May 31. Dickey's shuttered a net total of 85 restaurants during the period with new openings taken into account.
Franchisees for the chain recently told Restaurant Business Magazine that more than 30 additional Dickey's locations have closed their doors since the end of May. The company did not respond to previous queries for confirmation and comment on the additional reported closures. But after unveiling the other 97 closures earlier this fall, a company representative told Eat This, Not That! that they had been working to "clean up" and strengthen the chain.
"We listened to our operators and we made the strategic decision to strengthen our core before growing again," Jeff Gruber, senior vice president of franchise relations, said in a statement at the time.
Gruber said that Dickey's plans to open four new restaurants during the current fiscal year and boost support for franchisees by assisting with store upgrade costs, updating the menu, paying for advertising, and reimbursing operators 1% of their sales when sales are up monthly.
Denny's
After shuttering dozens of locations throughout 2023, Denny's has been hit with another major wave of closures in 2024. This past fall, the diner chain announced during an investor conference that it was closing about 150 restaurants—around a tenth of its total store count. About half of these locations shut down in 2024, while the other half are expected to close by the end of 2025.
The reason for these closures? Executives said that the chosen locations were struggling financially and dragging down the chain's overall health. However, they believe eliminating those underperforming restaurants can strengthen Denny's as a whole.
"We believe this is absolutely the right thing to do to make our system stronger," CEO Kelli Valade said at the time.
The company has projected 30 to 40 consolidated openings for the full 2024 fiscal year across Denny's and its sister restaurant brand, Keke's Breakfast Cafe. It also projected a net decline of 45 to 55 locations across its restaurant brands for 2024.
Shake Shack
Shake Shack has been expanding rapidly this year and previously projected store 80 openings before the end of 2024. But even as the high-quality burger chain grew its footprint, it said goodbye to several locations for good.
In a filing with the U.S. Securities and Exchange Commission (SEC) over the summer, Shake Shack announced plans to shutter nine struggling restaurants across California, Ohio, and Texas. The company said that the closing locations were underperforming due to changes in their trade areas and, in some instances, competition from other nearby Shake Shake stores. This was the first time that Shake Shack shuttered restaurants for reasons unrelated to construction.
The company believes removing those struggling locations from its system will set it up for more prosperity in the long term.
"We're committed to sustainable growth and providing the best possible experience for our guests," Shake Shack CEO Rob Lynch said in a statement to Eat This, Not That! at the time. After careful consideration, we've made the tough decision to close a small group of Shacks due to various factors, including underperformance. We remain focused on supporting our team members through this transition and look forward to continuing our growth, opening many more locations across the country."
KFC
A major KFC franchisee abruptly closed about 25 locations this past summer across three Midwestern states: Illinois, Indiana, and Wisconsin. KFC confirmed to Nation's Restaurant News that all of the shuttered locations were owned by franchisee EYM Chicken, a subsidiary of the major fast-food operator EYM Group.
This was only the latest blow to EYM Group, which has struggled in recent years and gotten involved in a series of court disputes with its parent company and other parties. Since the start of 2023, two EYM Group subsidiaries that operate Burger King and Pizza Hut locations have also filed for bankruptcy.
Noodles & Company
Some diners may have one less spot to score macaroni and cheese and other flavor-packed noodle dishes by the end of the year. Noodles & Company executives announced during an Aug. 7 earnings call that they've identified approximately 20 underperforming restaurants that they'll consider closing before the end of their current leases.
The company expects to close 10 to 15 restaurants, including some of the 20 underperforming stores, during the 2024 fiscal year alone, CEO Drew Madsen said. Noodles' goal in shuttering the locations is to improve the health of the business as a whole, which has been struggling with declining customer traffic and other financial woes. The 20 underperforming locations that may be closed, for example, experience approximately $2 million in combined operating losses annually.
"We believe closing underperforming restaurants will allow us to focus more on our restaurants with the most growth potential and provide an increase in company earnings and cash flow post closure," Madsen said.
Buca di Beppo
The family-style Italian chain Buca di Beppo has been shuttering locations for years, and unfortunately, the trend has continued into 2024. A company representative confirmed to Eat This, Not That! in July that they'd decided to close down 13 struggling locations for good. California, Utah, Michigan, and New York were among the markets impacted by the closures.
"While Buca regrets having to take this difficult action, these restaurants were unable to recover from the damage caused by the pandemic and other market pressures," the representative said in a statement. "Buca di Beppo remains open in 44 locations and looks forward to continuing to serve its customers who have made Buca part of their traditions and celebrations for many years."
Buca filed for Chapter 11 bankruptcy protection about a week after the closures, blaming declining sales, elevated costs, staffing issues, and other factors for its financial woes. The chain plans to continue operations without interruption at its remaining locations during the bankruptcy process.
Hooters
One of America's most iconic sports bar chains—Hooters—shuttered dozens of locations across at least five states during the summer of 2024. While the company hasn't confirmed the exact number of closures, some local media outlets estimated that up to 40 Hooters locations closed their doors for good in June.
"Like many restaurants under pressure from current market conditions, Hooters has made the difficult decision to close a select number of underperforming stores. Ensuring the well-being of our staff is our priority in these rare instances," Hooters said in a statement at the time to Eat This, Not That!
Despite the closures and a nearly 15% decline in systemwide sales since 2018, Hooters said it's still opening new locations across the globe and the brand "remains highly resilient and relevant."
"We look forward to continuing to serve our guests at home, on the go, and at our restaurants here in the U.S. and around the globe," the statement read.
BurgerFi
BurgerFi is certainly experiencing its fair share of financial woes in 2024. The gourmet burger chain reported a 13% decrease in same-store sales and a 6% drop in revenue during the first quarter of the year, attributing its struggles to bad weather in key markets and a "challenging consumer environment."
The chain also shuttered eight underperforming restaurants during the quarter as it worked on "right-sizing" its footprint, CEO Carl Bachmann revealed during a May earnings call. BurgerFi ended up filing for Chapter 11 bankruptcy in September, blaming the move on rising costs and a "drastic decline" in consumer spending after the pandemic. Its lender (TREW Capital Management Private Credit 2 LLC) then purchased BurgerFi out of bankruptcy in October for $44 million.
Red Lobster
The world's largest seafood chain had a tough year in 2024. In May, Red Lobster abruptly closed nearly 100 restaurants amid then-unconfirmed reports that it was considering filing for bankruptcy. The chain had 570 locations left in operation following the closures.
Later that month, Red Lobster officially announced that it had declared Chapter 11 bankruptcy so it could continue operating while reorganizing its business. The chain had struggled for years with rising costs, underperforming restaurant closures, and major operating losses, particularly during its ill-fated Ultimate Endless Shrimp promotion that returned back last June. Since the bankruptcy filing, Red Lobster has been acquired by the lender Fortress Investment Group.
Rubio's Coastal Grill
Rubio's Coastal Grill, a fast-casual chain that specializes in tacos and other Mexican fare, abruptly closed 48 of its California locations in late May. The company confirmed the closures in a statement to several news outlets, attributing the decision to "the rising cost of doing business in California." California recently raised its minimum wage for fast-food employees from $16 to $20 in a move that has been celebrated by workers and decried by restaurant operators.
But even before the wage hike took effect on April 1, Rubio's had been struggling for some time. The chain saw its sales begin to decline in 2017, filed for Chapter 11 bankruptcy in 2020, and has been closing restaurants ever since, Restaurant Business Magazine reported. Rubio's is now down to 86 locations across California, Arizona, and Nevada.
Cracker Barrel
At the beginning of April, Cracker Barrel closed four restaurants located in Sacramento, Calif.; Santa Maria, Calif.; Medford, Ore.; and Columbia, S.C. The Oregon location was the last remaining Cracker Barrel in the state, with the chain closing three Oregon restaurants in 2023. California now only has five Cracker Barrel locations, while South Carolina has 23, according to the chain's website.
"As a standard course of business, we continually evaluate the performance of our stores, using various criteria to ensure we are meeting the needs of our guests and our business," Cracker Barrel said in a statement previously shared with Eat This, Not That! "The decision to close a store is never one we take lightly, and our focus right now is on assisting our impacted employees during this transition."
The recent shutterings follow more than a year of declining customer traffic, with the restaurant chain reporting a 4% decrease during its most recent quarter.
Applebee's
Over the last several years, Applebee's has faced numerous closures, shuttering around 300 restaurants since 2017. Last year, the chain closed 46 locations, and this year, Applebee's is bidding farewell to even more restaurants.
During a fourth-quarter earnings call, Tony Moralejo, the president of Applebee's, shared that Dine Brands Global, the chain's parent company, expects 25 to 35 more Applebee's locations will shut down in 2024.
As part of the company's growth efforts, Dine Brands plans to focus on initiatives like its co-branded Applebee's and IHOP restaurants. These could open as early as the first quarter of 2025, according to Nation's Restaurant News.
Additionally, Flynn Group, a major restaurant operator, plans to expand Applebee's with 25 new restaurants over the next seven years. The company recently acquired 26 Applebee's restaurants in Florida and Georgia.
TGI Fridays
This year has been a particularly tough one for TGI Fridays. It shuttered roughly 50 restaurants in 2024 after years of struggles with sales growth and closures. It also lost control of most of its assets after failing to file documents to bondholders on time, lost out on an acquisition deal, and ultimately filed for Chapter 11 bankruptcy protection in early November.
The company plans to use the Chapter 11 process to restructure its finances in the hopes of reviving the casual sit-down chain. The bankruptcy only impacts TGI Fridays' 39 company-owned locations, which have secured funding to remain open.
"The next steps announced today are difficult but necessary actions to protect the best interests of our stakeholders, including our domestic and international franchisees and our valued team members around the world," TGI Fridays Inc. Executive Chairman Rohit Manocha said in the bankruptcy announcement.
Boston Market
Boston Market has been on the decline for some time, confronting mass closures, legal issues, and other financial troubles. In 2023, the restaurant chain had around 300 restaurants. As of March 2024, it's down to a mere 27 stores, according to Restaurant Business. The closures were reportedly driven by landlord evictions due to unpaid bills and state officials shutting down restaurants over unpaid sales taxes. The chain has also faced over 150 lawsuits, many of which also revolve around unpaid bills.
In response to Restaurant Business' reporting, Jay Pandya, Boston Market's owner, claimed there are "more than double" that number of Boston Market locations, though Restaurant Business noted that Pandya failed to provide a list.
We attempted to reach a representative at Boston Market for confirmation, but there is no media contact information available, and the contact page on the restaurant chain's website provides only a physical mailing address and a catering hotline phone number.
Mod Pizza
In March 2024, fast-casual chain Mod Pizza shut down 27 restaurants across 11 states and the District of Columbia. The closures affected restaurants in California, Philadelphia, Chicago, Dallas, Washington, D.C., Wisconsin, Seattle, New Jersey, Florida, Oklahoma, Virginia, and Oregon.
In addition to the recent closures, a franchisee shuttered one Atlanta location. While some suspected that the five California closures were prompted by the increased fast-food minimum wage, Rick Van Warner, a Mod spokesperson, told Restaurant Business that this was not the case, calling the timing coincidental. According to Van Warner, the shuttered restaurants were "underperformers."
PDQ
In February, this regional restaurant chain closed eight restaurants across North and South Carolina. Six of the closures were in North Carolina, which currently has four PDQ locations. South Carolina no longer has any PDQ stores. According to PDQ's website, the chain currently operates 59 locations.
In a statement shared with CBS 17, PDQ representatives said: "This difficult decision comes after careful consideration and evaluation of market conditions."
The brand did not share any more specific details on why it closed these eight locations or whether there would be additional closures in the near future.
Outback Steakhouse
During its fourth-quarter earnings call in February, Bloomin' Brands, the parent company of Outback Steakhouse, Carrabba's Italian Grill, and Bonefish Grill, announced that it closed 41 "underperforming locations."
Dave Dino, the company's CEO, said most of these restaurants were "older assets with leases from the '90s and early 2000s," adding that the company closed these restaurants because of "a variety of factors, including sales and traffic, trade areas and the investments that would have to be made to improve the restaurants."
During the earnings call, Chris Meyer, Bloomin' Brands' CFO, noted most of the closures were Outback restaurants. That being said, Bloomin' Brands expects to nearly triple its Outback openings in 2024 and plans to open around 18 new restaurants this year.
Hardee's
Following a string of closures in 2023, Hardee's shuttered several more locations this year. In Central Illinois, the chain closed restaurants in Champaign, Chatham, Monticello, Springfield, and Virden. In Southern Illinois, Hardee's closed locations in Carterville and Du Quoin, as reported by KFVS12. Hardee's did not reveal the reason behind the closures.
In addition to these Illinois restaurants, Hardee's also closed one restaurant in Spring Hill, Tenn., according to local news outlet Williamson Source.
Tijuana Flats
On April 19, Tijuana Flats, a chain of fast-casual Tex-Mex restaurants, announced it had filed for Chapter 11 bankruptcy and closed 11 restaurants. Flatheads, LLC. is now acquiring the restaurant brand. According to a company representative, 10 of these affected restaurants were in Florida, while one was in Virginia.
In a press release, Tijuana Flats said the closures were "a result of a unit-by-unit analysis of financial performance, occupancy costs, and market condition." As a new owner, Flatheads plans to "revitalize" the restaurants and "reinvigorat[e] the customer experience."
While those closings coincided with the bankruptcy news, they weren't the first Tijuana Flats closings this year. The brand has shuttered a total of 40 restaurants since the start of 2024. There are now 65 company-owned restaurants in Florida and 26 franchisee-run locations across Florida, Alabama, North Carolina, and Tennessee.
Sign up for our newsletter!
