The number of retail stores that have announced nationwide branch closures in the last year has been surprising. Aside from retail stores, many restaurants are also having a hard time. They are facing a substantial decline in traffic and also beginning to downsize, closing branches across the US. There are restaurants that have stopped or modified services in order to meet new regulations, but there are also some which are facing permanent closures because of plummeting business. Keep reading to find out which restaurant chains are closing branches this year.
Restaurant Chains That Are Closing Branches In 2020
Jack In The Box
A fast food chain which serves bar food, Jack in the Box is a popular chain on the West Coast and it operates 2,200 locations, with some of them in the East Coast and Midwest. In addition, it was the previous owner of Qdoba, Chipotle’s main competitor. While Jack in the Box announced plans for nationwide expansion, it has also been forced to shut down some stores in the West. The chain has had some tough times, like the deadly e.Coli outbreak that rocked the company back in the late 1990s.
Jack In The Box
Luby’s
The company Luby’s Inc. has several subsidiaries that are well-known chain restaurants, like Luby’s, Cheeseburger in Paradise, Koo Koo Roo, and Fuddruckers. Founded in Texas 72 years ago, the company was formerly called Luby’s Cafeterias, Inc. prior to changing its brand. As for the restaurant Luby’s, it has 83 branches all over Houston and one in Mississippi. Its headquarters is now in Houston, but it was originally in San Antonio, where Luby’s was originally founded. It has been announced that Luby’s would be shutting down underperforming branches. However, this is not the first time the restaurant has done this, and the last time that they closed down branches, they reported a $6.6 million profit, boosting their revenue.
Luby’s
Pizza Hut
In 1958, the pizza place Pizza Hut was founded in Wichita, Kansas. It has been more than 60 years since its first store opened and it has expanded significantly during that time, with 18,431 branches all over the world. Its parent company is the bigger Yum! Brands, which has made some strategic decisions with regards to Pizza Hut. In the US, there are almost 7,500 Pizza Hut restaurants though Pizza Hut has plans to cut this number to 7,000 or perhpas less to streamline profits. Despite the recent fast food boom, there is a need for Pizza Hut to reorganize quickly to remain afloat during a rough 2020.
Pizza Hut
O’Charley’s
The casual restaurant chain O’Charley’s has around 200 locations and all of them are not franchised. They are located in 17 states throughout the Midwest and South, reaching as far as Ohio in the north and Louisiana in the south. The chain has recently announced closures and in June 2019, it closed down eight stores in one day. It no longer operates in Florida, closing down a single restaurant there in 2019. Recently, Fidelity National has made an announcement that “what’s left” of O’Charley’s would be acquired by them. It is not sure if Fidelity will attempt to revamp the restaurant.
O’Charley’s
Steak ‘N Shake
The casual burger chain operates in the USA, the Middle East, and Southwest Europe. Steak ‘N Shake was founded by Gus Belt in Normal, Illinois in 1934 but it is now owned by Biglari Holdings. Its headquarters is currently located in Indianapolis, Indiana. Out of the 628 restaurants that Steak ‘N Shake has, 214 are franchised. The chain also has nearly 21,000 employees. It has been announced that several dozen stores would be closing down temporarily until the restaurant are able to find new franchise partners.
Steak ‘N Shake
Red Robin
In 1969, the burger chain Red Robin was founded in Seattle, Washington, and ten years later, it opened its first franchised restaurant in Washington. Currently, the company has 562 restaurants, 90 of which are franchises. The chain has some Canadian locations as well, and its current headquarters are in Colorado. Red Robin has announced it would be shutting down 35 restaurants as well as laying off quite a number of top HQ employees to stave off losses it incurred from COVID-19. For now, the casual dining chain still rejects the activist investors’ suggestions closing down the entire company.
Red Robin
HomeTown Buffet
At its peak, HomeTown Buffet had over 250 restaurants. Its parent company is Ovation Brands, which was recently bought by Food Management Partners, Inc. Old Country Buffet, Furr’s, Ryan’s Grill, and Tahoe Joe’s are also operated by Ovation, which had been a solo company for 28 years. HomeTown Buffet is a subsidiary which definitely feels the new management heavily since the buffet-style restaurant chain went from operating 250 stores to just 33.
HomeTown Buffet
McCormick & Schmick’s
The American seafood restaurant McCormick & Schmick’s has closed roughly half of its stores, with more in 2020. Bill McCormick and Douglas Schmick founded the restaurant in 1979 and, its base is located in Portland, Oregon. McCormick & Schmick’s is a subsidiary of Landry’s, Inc., which is behind the shutdowns. Currently, the company has under 40 branches in America and five in Canada, and its net income, revenue, equity, and assets have all fallen. Its base has been moved to Texas by Landry’s, which manages McCormick & Schmick’s as well as handles the closing down of branches.
McCormick & Schmick’s
Fuddruckers
This burger chain is known for baking buns and grinding its meat on-site. In the US, it had 77 company-operated branches and 111 franchises. Its revenue is around $150 million, but it is closing down stores which aren’t bringing in enough money to further increase revenue. Its headquarters is located in Houston, Texas and its founder is Phil Romano, who later left the company to start his own Macaroni Grill. The build-your-own-burger restaurant chain has had different owners and has declared bankruptcy before.
Fuddruckers
Roy Rogers
Named after the Western actor Roy Rogers, this chain of burger joints operates in the Mid-Atlantic and Northeast region of the US. Roy Rogers Restaurants was formerly known as RoBee’s House of Beef until the Marriott Corporation (the well-known hotel chain) bought the restaurant chain in 1968 and in the same year, the name Roy Rogers was used for the first time. With an aggressive sales campaign, Roy Rogers Restaurants drew in customers quickly and at its height, it had around 600 branches in America. In 1990, Hardee’s parent company bought it and the number of branches has been whittled down to 48.
Roy Rogers
Boston Market
Boston Market used to be called Boston Chicken and it specializes in rotisserie chicken. The casual dining restaurant is owned by Sun Capital and headquartered in Florida. While branches of Boston Market are mostly located in the Midwest and Northeast US, you can find a branch in Florida because Sun Capital owns the restaurant. As of 2013, there were 462 stores open, but the number of branches and employee count (used to be at 14,000 at one point) have been whittled down. According to the statement issued by the Boston Market, the restaurant was going through a “multifaceted transformation plan,” which caused the rapid closures.
Boston Market
Perkins
Perkins is a breakfast and bakery chain that is privately-owned and was founded in Cincinnati, Ohio back in 1958. Originally known as Perkins Pancake House, it started using the name Perkins Family Restaurant in 1982 and is now located in 32 states in the US and four Canadian provinces. It is owned by Marie Callender’s, which filed for bankruptcy on August 5, 2019. This happened after abrupt closures with zero notice given to both staff and customers. This move garnered Perkins a ton of criticism. There are 2,500 employees that were laid off.
Perkins
McDonald’s
You read that right, even one of the flagship restaurants of America – with the billions of burgers it served and the millions of dollars it has – hasn’t been immune to the COVID-19 pandemic. After stopping many of its operations overseas (including Israel, the UK, Spain, and Italy), the fast food giant was forced to shut doors across the U.S. as well. Fortunately, the chain has reconfigured its business model, and while some doors will stay closed for good, other branches have made the transition to takeaway-only offers. However, the death of on-site dining has already bitten a chunk off of the walk-in market of McDonald’s.
McDonald’s
Del Taco
Founded in the 1960s, this Mexican-inspired restaurant serves burgers and fries as well. Del Taco has 564 restaurants in total and is more popular in the Southwest and West. In 2020, it will close down branches that are less popular, continuing its trend, but it is moving more towards franchisee territory. In 2015, Levy Acquisition bought out Del Taco, which became a public company. Currently located in 15 states, Del Taco recently expanded into Detroit, but it did not have as much success in its eastward expansion. However, Del Taco’s revenue can still compete with Taco Bell.
Del Taco
Burger King
This fast-food chain’s main competitors are Wendy’s and McDonald’s. Burger King recently announced it would be shutting down 200 to 250 underperforming branches, which is an increase compared to the 100 to 150 restaurants it had been shutting down each year before. The burger chain has been around for some time and was founded in 1966. Originally named as “Insta-Burger King” in Jacksonville, Florida, its headquarters is now in Miami, Florida. Even though Burger King still has 17,800 restaurants operating in the country now, its future is uncertain, which is evidenced by the increase in the rate of closures.
Burger King
IHOP
IHOP means International House of Pancakes and it is a breakfast restaurant chain owned by Dine Brands Global, which is also the parent company of Applebee’s. Out of all the Dine Brands Global’s branches, 99% operate as independent businesses. In 1958, IHOP was founded in Los Angeles, and its headquarters is still in California. Recently, the Waffle House nemesis has announced changes to its list of stores and that they would be shutting down several hundred branches – though many could possibly reopen soon. IHOP has 32,300 employees in total and reported a $350 million revenue roughly a decade ago.
IHOP
Taco Bell
Another Yum! Brands company, Taco Bell serves Mexican-ish cuisine and value menu food and has approximately two billion customers each year. Glen Bell founded Taco Bell in Downey, California in 1962. He had run a hot dog stand before this and had seen the Mexican restaurant beside him make more money than he did, so he decided to try Mexican-inspired food. “Taco Tia” was the name he gave to his first Taco Bell and he based his food off of the neighboring stand’s recipes. Taco Bell expanded quickly, but it has announced cutbacks in 2020.
Taco Bell
TGI Friday’s
Thank Goodness It’s Friday or TGI Fridays has around 870 locations all over the world and operates practically everywhere except in sub-Saharan Africa. Its founders are Alan Stillman and Daniel Scoggin, who opened the first restaurant in New York City. Its headquarters has been moved to Dallas, Texas, though the casual dining restaurant is still everywhere. At the time, the chain was known for the red-and-white soccer shirts its employees wore and in some locations, the uniform is still common.
TGI Friday’s
Olive Garden
This Italian casual dining restaurant opened in 1982 and is among the most affordable restaurants of Darden Restaurant Company. The average check per person amount in Olive Garden is roughly $20, while it is $100 or so in its Capital Grille sister restaurant. Recently, the logo and restaurant design of Olive Garden have been changed due to a restructuring plan. The restaurant also offers online ordering. In attempt to cut costs, the company is shutting down its nonprofitable restaurants, converting the wait staff to part-time to avoid paying for benefits and health insurance.
Olive Garden
Ruby Tuesday
Ruby Tuesday is a casual dining chain that is similar to Applebee’s and TGI Friday’s and was established in Knoxville, Tennessee back in 1972. Recently, it has experienced a significant sales slide and has unfortunately announced massive closures of its branches because of a lack of income. Ruby Tuesday has 491 stores worldwide and majority are located on the east coast, but there are some branches on the Pacific Coast as well. The company also owned Marlin and Ray’s at one point, but it closed down all those locations.
Ruby Tuesday
Carl’s Jr.
CKE Restaurant Holdings owns Carl’s Jr., a fast-food chain which operates in America and Canada. In 1941, Carl Karcher and his wife founded the restaurant after a few years of running a hot dog cart. Carl’s Jr. is quite stable, but they are still not immune from closures. It closes at least a couple of stores each year, usually without making an announcement about the closures. They have 1,490 restaurants all over the world, operating in 44 states and several other US territories and in 38 countries.
Carl’s Jr.
Marie Callender’s
This restaurant chain was founded by Marie Callender, who baked cakes and pies to augment the income of her family. At the time, the Callender family was living in a trailer park, but they took a risk and opened a restaurant, which ended up taking off and becoming successful. The business had been flourishing until 2009, when Marie’s husband Don fell in his home and died from head trauma. Since then, the chain has declared bankruptcy several times and shut down many of its locations. They still have 28 venues in the US, mostly in California, where the headquarters of the restaurant are located.
Marie Callender’s
Kona Grill
Kona Grill is a Sushi restaurant chain that was established in Scottsdale, Arizona and has roughly 40 restaurants in America and Puerto Rico. It has three international locations as well. However, the chain filed for bankruptcy protection in 2019 and it has actually been plagued by closures for years since it was founded in 1998. In March of 2019, Kona Grill announced it was seeking a merger. Aside from filing the bankruptcy petition with the SEC, there were also reports that the CEO of Kona Grill is thinking of resigning from the company.
Kona Grill
Quiznos
This fast-food chain focuses on subs, similar to Subway. Even though Quiznos filed for bankruptcy back in 2014, it was managed to come out of bankruptcy protection after it reduced its debt by roughly $400 million. Its headquarters is still in Denver, Colorado even after High Bluff Capital purchased the chain. Jimmy Lambatos established Quiznos in 1981 and it had 5,000 locations in 2002. As of 2018, that number was whittled down to around 800 locations but the company still has both domestic and international locations. The first major closures started in 2007, with 1,000 stores in the US shut down.
Quiznos
Carrabba’s
In 1986, the family restaurant Carrabba’s Italian Grill opened its first venue in Houston, Texas. The restaurant took off and eventually merged with Outback Steakhouse, Inc., which later became Bloomin’ Brands. It also began opening up locations in Florida. In 2015, Carrabba’s opened its first restaurant outside of the US and the branch was named Abbraccio (located in Brazil). Carrabba’s may have opened new restaurants, but it has made strategic closures too. Bloomin’ Brands has 1,500 restaurants, but Carrabba’s is the subsidiary which keeps closing locations to do away with underperformance.
Carrabba’s
Sbarro
You probably have Sbarro in your local mall as they are one of the most popular Italian fast food chains. The restaurant was established in Brooklyn in 1956 and is very popular on college campuses. It has several hundred locations, but its headquarters are located in Columbus, Ohio. In 2014, it announced it would start a wave of closures which has lasted for several years and surged well into 2020. Sbarro is focusing on closing down restaurants which aren’t bringing in enough revenue and remodeling the ones which are profitable.
Sbarro
Outback Steakhouse
Similar to its sister restaurant Carrabba’s, Outback Steakhouse has been forced to shut down dozens of locations this year already. It has restaurants all over the world and it has more of an international presence compared to the other subsidiaries of its parent company, Bloomin’ Brands. In 2012, the first initial public offering of Bloomin’ took place and according to SEC filings, the company was aiming to raise $300 million. The IPO wasn’t unsuccessful, but Bloomin’ still had to shut down underperforming chains. Outback’s first location was in Tampa in 1988 and the chain has performed well in Florida, so its branches there are still open.
Outback Steakhouse
Bonefish Grill
Yet another subsidiary of the Bloomin’ Brands, Bonefish Grill is a casual seafood chain that was founded in St. Petersburg, Florida. Its headquarters are still in Tampa and as of 2015, it had 215 locations, but it has closed several of its branches in Florida because of underperformance. Currently, the chain has a $619 million revenue each year. The chain remains popular in Florida, in spite of the few closures, partly because it is a corporation that is socially responsible. It follows the NCOAA sustainability recommendations when it comes to procuring fish and frequently tests the DNA of its fishes to ensure the supply is not over-depleted.
Bonefish Grill
Church’s Chicken
Church’s Chicken has a franchise together with White Castle and was established in San Antonio, Texas, though its corporate headquarters are located in Atlanta, Georgia. It has restaurants in the US, Europe, the Caribbean, South America, and Asia. Known for its fried chicken, jalapenos, and biscuits, Church’s Chicken has a $786 million revenue each year, but it still continues to struggle. Friedman Fleischer & Lowe, its owner, has put Church’s on the market as of 2019 since the numbers for the store count and the sales were dropping. It remains unclear whether Church’s will close permanently.
Church’s Chicken
Papa John’s
The pizza delivery chain Papa John’s has roughly 5,300 locations in America and brings in almost $2 billion in revenue each year. It has been operating for more than three decades now but it has plans to carry out at least 51 closures around the world in the immediate future. Aside from the obvious market risk in the midst of COVID-19, a major reason for the sales drop is attributed to the departure of the longtime CEO and spokesman of Papa John’s, John Schnatter.
Papa John’s
Long John Silver’s
This seafood fast food chain has experienced bankruptcy several times. The company got its name from the novel Treasure Island by Robert Louis Stevenson and was previously owned by Yum! Brands, though it is now 80% franchise-owned. Recently, the company has restructured and purchased 76 franchised stores which were owned in Indiana with the plan to renovate and reopen these stores. The company also has a new CEO, who aims to close weak branches and refocus Long John Silver’s on a healthier menu with less fat and sodium.
Long John Silver’s
Chipotle
The Mexican-inspired fast-food chain Chipotle Mexican Grill has recently been embattled, closing down a total of 65 stores from 2018 to 2019, with more closures in 2020. This doesn’t necessarily mean bad news, though. On the contrary, the fortuitous switchover of Chipotle from dining rooms and physical locations to online deliveries in 2019 has ended up becoming a really profitable investment mid-pandemic. Its new tasty queso cheese recipe has to get some of the credit as well!
Chipotle
Dairy Queen
The ice cream chain established in Illinois in 1940 is a subsidiary of Berkshire Hathaway, Warren Buffett’s company. In addition, Dairy Queen purchased Orange Julius in 1987 and it was the new merged company that Buffett bought. Dairy Queen also has an international presence but it is struggling. It has small profit margins and high operating costs due to the many products the chain has to offer. Franchisees have also faced bankruptcy, with Vasari LLC as an example. In 2017, the company filed for bankruptcy and closed down 70 Dairy Queens.
Dairy Queen
Noodles & Company
Noodles & Co. is a fast food restaurant that is popular with people who love international and American pasta dishes. It was established by former Pepsi executive Aaron Kennedy, who raised money in 1995 from family and friends so that he could open the first restaurant in Denver, Colorado in the same year. Fast-forward to 2019, Noodles & Co. has 410 restaurants and branches internationally. The chain may have had some success, but it had to close down locations after it lost $72 million in 2018. Even though the company did get a loan, it wasn’t enough to stop closures.
Noodles & Company
Hooters
The privately-owned chain Hooters, Inc. serves bar food (including specialty chicken wings) and is famous for their scantily-clad waitresses who are called Hooters Girls. The company has had to shut down many of its restaurant and is changing its business strategy to survive. According to some experts, it is possible that Hooters is reacting to the evolving cultural attitudes towards how women are portrayed. Some stated that the older crowd is more interested in the restaurant compared to the younger millennial generation. Whatever the cause, Hooters has already started disappearing throughout America.
Hooters
Cheesecake Factory
In 1972, the Cheesecake Factory, Inc. was established as a bakery in Los Angeles, but it has expanded to become a chain of restaurants and now has roughly 211 branches. Somewhat pricey, Cheesecake Factory is known for its eclectic décor and long menus. Its headquarters are located in California and it also has production factories in the state and in North Carolina. It has been struggling and has closed down a number of long-standing branches with more closures predicted in 2020. On the other hand, the Cheesecake Factory’s profits have increased because of the distribution of its desserts and baked goods in Barnes & Noble Bookstores and supermarkets.
Cheesecake Factory
Bob Evans
Bob Evans Restaurants took off after it was founded by Bob Evans in 1953, and by 1957, it needed to open four sausage factories to keep up with the demand. The holding company for the plants and the restaurants was Bob Evans Farms. The restaurants are known for the farm-to-table appeal and red-and-white décor that they have. The company has closed down some branches and the workers who were unable to relocate to another store were offered termination benefits. It has shut down several dozen stores each year to increase profits, which has affected hundreds of restaurant workers.
Bob Evans
Joe’s Crab Shack
This seafood chain was founded in Houston, Texas and has locations all over America, specifically in the south, where it is more conducive to have the beach theme. It has gone through multiple sales, having been purchased by J.H. Whitney & Co. for $192 million in 2006. Joe’s Crab Shack was in debt for $225 million, which was assumed by J.H. In 2017, J.H. filed for bankruptcy and Joe’s Crab Shacks was bought by Landry’s, Inc., which has closed down and is planning to shut down dozens of locations. However, Landry’s, Inc. does not plan to close all Joe’s Crab Shacks, but it aims to revamp and reintroduce the chain instead.
Joe’s Crab Shack
Papa Murphy’s Pizza
The pizza company Papa Murphy’s Pizza is a “take and bake” and was established in Washington in 1995, after two companies were combined – Papa Aldo’s and Murphy’s. It has grown and now has 1,300 outlets in America and Canada. Papa Murphy’s Pizza is particularly popular on the West Coast, which makes it one of the five largest pizza chain in the US. However, it has still gone through some financial crises and was first bought by Lee Equity in New York. Four years later, it underwent an IPO. It began nationwide advertising in 2017, and it is now focusing on increasing revenue by shutting down unprofitable stores.
Papa Murphy’s Pizza
Tim Hortons
This quick-service restaurant business operates 4,848 stores worldwide, with its headquarters in Toronto. Tim Horton’s Inc. is the biggest fast-food joint in Canada and was established by Canadian hockey player Tim Horton and Jim Charade, his business partner, in Hamilton, Ontario in 1964. Their original venture was hamburger restaurants, but they made the switch to coffee and donuts. The franchise ended up becoming a multi-billion-dollar enterprise, though it has recently closed down stores which were underperforming. Four Tim Horton stores located in Dayton, Ohio have been most recently closed abruptly.
Tim Hortons
Applebee’s
IHOP’s sister restaurant, Applebee’s also announced it would be shutting down several stores which were underperforming. There are 1,830 Applebee’s restaurants throughout America, Guam, Puerto Rico, and 15 other countries. Most of the branches are franchised, and only 70 are company-owned. Applebee’s is a subsidiary of DineEquity, which relocated the headquarters to Glendale recently. Refusing to move, the president, Steven Layt, resigned from Applebee’s leadership. The restaurant chain brings in a revenue of $2.5 billion, its total assets amount to $935 million and, it has 28,000 employees.
Applebee’s
Buffalo Wild Wings
Buffalo Wild Wings is a sports bar franchise with 1,238 branches throughout the fifty states in the US and headquarters located just north of Atlanta. Buffalo Wild Wings was established in 1982 and had revenue of $2 billion per year, though the operating income of the franchise has been dropping yearly. The company was recently bought by Arby’s parent company for $2.9 billion. This happened after the closures of many Buffalo Wild Wings across the US. The company announced there will be changes to its operating plan and menu to cope.
Buffalo Wild Wings
Pollo Tropical
Established in Miami in 1988, Pollo Tropical (which means Tropical Chicken in English) is a Caribbean-inspired fast food restaurant chain known for its grilled chicken and black beans and rice sides. Fiesta Restaurant Group owns the chain, which has roughly 140 locations in Florida, Georgia, Texas, and Latin-American countries. The chain has been trying out new business strategies, such as selling fried chicken. In addition, it has streamlined its operations, closing stores in Texas, to slow development. It announced that it had trouble managing the too fast growth it experienced and is now planning to open some new stores only in Florida.
Pollo Tropical
Qdoba
The main competitor of Chipotle, Qdoba, Inc. was founded in Denver. The popularity of this Mexican-cuisine fast food chain was from the fact that it offered healthy food, replaced animal fat with vegetable oil and used more fresh vegetables and herbs whenever possible. It wasn’t super expensive as well. Jack in the Box previously owned Qdoba before it sold the chain to Apolla Global for $305 million. This means Apollo bought all 700 Qdoba locations, which operate in 47 states. Although Qdoba has already gone through several rounds of closures of underperforming stores, it is expected that closures will continue in 2020.
Qdoba
Sweet Tomatoes
Owned by Souplantation, Sweet Tomatoes is a popular restaurant chain that serves salad, soup, healthy food, and bakery items. It was founded in San Diego in 1978. The company went public in 1995 and went private again not ten years later. Currently, Sweet Tomatoes only has a handful of locations left in the US, and it has just announced that it is planning to close almost 100 locations. In an attempt to handle its debt ratio, Souplantation announced it was working with lenders.
Sweet Tomatoes
Old Country Buffet
There has been issues between Old Country Buffet and its parent company, Ovation Brands, which has filed for bankruptcy multiple times, in 2012 and 2016. Ovation claimed that its debts were $26.3 million more than its assets. As a result, dozens of Old Country stores has had to shut down, and there are only 19 locations left. There were once 350 Old Country Buffet restaurants in the US, but there may be zero left standing by the end of 2020.
Old Country Buffet
Chili’s
Founded in 1975, this bar food restaurant chain was bought by Brinker International. Known for its baby back ribs ad, Chili’s has had to cut down on that dish to focus more on Tex-Mex cuisine and burgers. The company has roughly 1,500 locations which operate domestically and internationally. Chili’s has been closing its company-operated chains to boost profits. While it has been struggling for some time, Chili’s has gotten a new life when Brinker purchased 116 of its locations early this year.
Chili’s
Sonic
The drive-in fast food chain Sonic was established in the 1950s and incorporated in the 1990s. Recently, Sonic started Sonic Beach, a chain that serves usual menu items and alcohol and seafood. There have been changes in Sonic. It ended its relationship with the ad agency Barkley – an abrupt termination of a 17-year relationship. In December of 2018, Sonic was bought by Inspire. Sonic has since had to close dozens of stores, with scattered closures still happening across the US.
Sonic
Checkers
This drive-in fast food chain is more popular in the Southeast, whereas its sister company, Rally’s, is popular in the Midwest. However, the two are basically the same restaurant. Rally’s was founded in 1986, and Checker’s was founded the year after that. In 1999, they merged and their dual headquarters are in Tampa, Florida. In 2017, Oak Hill Capital purchased Checkers for $525 million and in 2018, Checkers announced it was expanding into Pittsburgh. To have more profitability for the new expansion, it is closing some of its Southeast locations.
Checkers
KFC
Colonel Sanders founded Kentucky Fried Chicken (KFC) in 1930, when he began selling his famous recipe at a Kentucky roadside stand during the Great Depression. He knew KFC would be great for franchising, so he franchised it back in 1952. It became a direct challenge to fast-food places like McDonald’s which only served burgers and fries. In 2020, KFC is closing down dozens of branches as it aims to increase profitability. The company is struggling to maintain dominance in the chicken market due to businesses like Chick-fil-A and Popeye’s which directly compete with their products.
KFC
Arby’s
Arby’s has roughly 3,400 locations in the US, Canada, North Africa, and the Middle East. The fast-food sandwich chain is owned by Inspire. The company was formerly called Arby’s Restaurant Group, Inc., and it owns Buffalo Wild Wings. Bringing in over a billion dollars in revenue each year, Arby’s is definitely a success, but it is still closing underperforming branches. The restaurant is unfortunately known for abrupt branch closures, not notifying its own employees or the community when it decides to close a location.
Arby’s
Hardee’s
Hardee’s once merged with Carl’s Jr. The fast food chain has thousands of locations in America and is doing better than Carl’s Jr., but Hardee’s has announced strategic closures coming up. It also recently made headlines after it separated from Carl’s Jr. Hardee’s CEO found Carl’s Jr.’s racy advertising, featuring scantily clad women and envelope-pushing marketing campaigns, “incompatible” with Hardee’s, which aims to be a chain that is family-oriented, so the two companies divorced. Hardee’s is still headquartered in Tennessee, despite the split with Carl’s Jr. and CKE, Carl’s parent company.
Hardee’s
Rapid Fired Pizza
This gourmet pizza shop makes pizza within 180 seconds and it is often paired with Kroger’s, which gives shoppers a place to get something quick to eat while they do their grocery shopping. Rapid Fired Pizza announced it would be closing down several locations in 2020. A location in Wilmington, Ohio is the most recent closure. Compared to others on this list, Rapid Fired Pizza is relatively new. The industry of fast-casual pizza is new and has become a challenge to the pizza establishment.
Rapid Fired Pizza
Panera Bread
Specializing in fast-casual dining, Panera Bread has many dining rooms that are currently closed. The company has already shut down a few scattered branches across the country. It announced last year that it would be closing 2000 Panera Cares subsidiary locations, which is a massive reshuffling of the company’s physical footprint. However, Au Bon Pain, Panera’s other major subsidiary, is still alive and well.
Panera Bread
MOD Pizza
The pizza chain specializes in make-your-own salads and individual artisan pizzas. In the past years, MOD Pizza has had a lot of changes, raising $33 million in equity in 2018 and breathing new life into the chain. However, it is still closing a number of underperforming branches, such as the location in Centerville, Ohio. MOD currently has over 400 locations in America since the opening of its first flagship store in Washington in 2008. It is headquartered in Bellevue, Washington and has stores in the United Kingdom.
MOD Pizza
Five Guys
The popular fast-casual dining chain Five Guys Burgers & Fries serves hamburgers, fries, hotdogs, and other classic American food. Five Guys Enterprises, LLC. was founded in Virginia in 1986, and it has hundreds of locations in the Midwest and on the East Coast. It has shut some underperforming locations, though it is financially stable, as what its parent company, Five Guys Holdings, Inc., said. It has 15,000 employees and brings in a $57.68 million net income. As of 2016, its revenue is $831.95 million and is growing.
Five Guys
On The Border
The Tex-Mex chain On the Border has several restaurants in the Midwest and recently opened a South Korean chain. Founded in 1982, On the Border has recently gone through some rough financial times, closing many of its restaurants. The company’s CEO, Matt Hood, who started his duties in 2018, hopes to turn the business around. After Men’s Health ranked the company as the Unhealthiest American Chain several times, On the Border is trying out a new direction.
On The Border
Papa Gino’s Pizzeria
Papa Gino’s first closures were in 2018, and it abruptly closed nearly 100 locations, surprising both staff and customers. Based in Dedham, the company was well-known in the Northeast and some areas of the Midwest. D’Angelo’s, its sibling restaurant, has gone through closures as well. In late 2018, Papa Gino’s announced bankruptcy, and its parent company became financially insolvent. It still operates restaurants, but there are just a few dozen left.
Papa Gino’s Pizzeria
El Pollo Loco
El Pollo Loco was founded in Guasave, Mexico in 1975. In 2018, the company appointed its current CEO, who has made some changes. The Mexican-inspired food chain has closed restaurants in Texas and Virginia, though it still operates 487 stores in the south. El Pollo Loco first traded on NASDAQ as a public company back in 2014. It expanded into Lafayette and has gone even to Virginia, but that has not been quite a success as the past closures and upcoming ones in 2020 suggest.
El Pollo Loco
Pieology Pizzeria
Founded in 2011, Pieology Pizza operates 140 restaurants as of September 2018, but closures have happened and will continue to happen as the chain readjusts. In 2015, Pieology was among the fastest-growing restaurant chains, expanding into Hawaii by working together with Cotti Foods. In addition, the chain recently went international and opened a chain location in Guam. Franchise partners opening restaurants has allowed it to survive. The Cherngs, who established Panda Restaurant Group, also made a sizable investment in Pieology, which recently bought Project Pie. Pieology has shut several underperforming stores and more closures are upcoming.
Pieology Pizzeria
California Pizza Kitchen
California Pizza Kitchen has been around since 1985 and has experienced some financial issues, starting in 2003. According to its CEO, it was growing by 16%, but those estimates proved to be false. The company replaced the CEO and experienced some hard quarters ahead. Golden Gate Capital purchased California Pizza Kitchen in 2011, closing underperforming eateries and continuing that trend in 2020. California Pizza Kitchen has expanded overseas and has made its menu more diverse to include vegan and gluten-free products, such as its Cauliflower Pizza Crust.
California Pizza Kitchen
White Castle
Known for the mini-hamburgers it serves called “sliders” and the castle façade design, White Castle is usually open 24 hours, though at some branches, the grand openings had to be delayed due to the restaurant’s popularity. Not all locations are so lucky, however. In the 1980s, White Castle went global, almost 60 years after it first opened back in 1921 in Wichita, Kansas. Operations in several states had to be shut down, as well as White Castle locations in other countries like Canada Japan, Singapore, Malaysia, and Thailand, for lack of profits.
White Castle
Domino’s
Domino’s Pizza started in the US and expanded overseas. It has 63 UK franchisees, which operate 1,109 stores. However, Domino’s is facing economic hardship both at home and abroad, and it announced it would completely abandon its overseas operations. The pizza chain will close down not only its UK restaurants but also its chains in Sweden, Norway, and Switzerland. Domino’s allegedly incurred millions in losses in the past few years and there was no profit gain which would make up for the franchise-ending losses.
Domino’s
Long John Silver’s
Long John Silver’s has around 8,400 employees across the world. Before Yorkshire Global purchased it, it was a subsidiary of Jerrico, Inc. Its headquarters are in Louisville, Kentucky, and relatively recently, it ventured into the global markets. The seafood chain is closing locations in states in the South and West, but it announced it would be expanding and it acquired 76 franchises in Indiana. Also, LJS is on a mission to serve healthier food, since a health food publication declared it the “worst fast food restaurant meal” in the US.
Long John Silver’s
Panda Express
The Cherng family founded the fast-food chain Panda Express 36 years ago, and it employs 2,200 people. However, their employee count recently dropped, with Panda Express closing two Syracuse locations overnight, both almost next to each other. Restaurants in Sarasota were also shut down. Renowned for its orange chicken and chow mein, Panda Express still has 1,800 stores in the US, and more are opening in strip malls. There are Panda Express restaurants that have also been closed (temporarily) because of violations of the health code this year.
Panda Express
Little Caesars
Even though Little Caesars is opening some new restaurants on the East Coast, locations in Central America are struggling. Takeout makes up 90% of the business of the “Hot & Ready” restaurant and there are brick and mortar locations that aren’t making the cut. Employees were shocked when Little Caesars closed in Kansas City. Six locations in Kansas City closed in 2017, and two more joined them. There are currently 5,463 Little Caesars locations, but in a foreboding shock, the original store itself shut down last year.
Little Caesars
Jimmy John’s
Jimmy John’s was bought out by Inspire Brands, which announced the deal was closed in October this year. The CEO of the parent company, Paul Brown, spoke to CNBC about his company being “very selective” about the next move of the sandwich chain. Even though Jimmy John’s now belongs to America’s fourth-largest restaurant business, it has closed down stores on the East Coast and Midwest. There was also a CEO shakeup when the company’s head of sales resigned in September of 2019.
Jimmy John’s
Cici’s Pizza
CiCi’s Pizza has closed all its branches in New York. In total, the Texas-based brand has shut down almost one-tenth of all its restaurants because of low sales. Arlon Group bought the company in 2016, with buyout happening in a secret deal. Although that was a big shakeup, the pizza buffet chain kept Darin Harris, its original CEO, and it still has branches in 33 states (440 locations, many of which are franchises). For now, it is keeping its next moves quiet.
Cici’s Pizza
Potbelly Sandwich Shop
Potbelly Sandwich Shop still has 474 locations in America, but it is struggling. After reviewing second-quarter fiscal earnings, Potbelly Corp. announced it would be shutting down its international operations, which weren’t making enough to survive. So far, Potbelly Corp. has closed down ten percent of its stores this year. However, the company announced that it had plans to try out a new store format later this year to help stimulate growth.
Potbelly Sandwich Shop
Bojangles
Bojangles’ started closing restaurants in 2018. The chain known for its cheddar biscuits shut down locations in four different states. According to their announcement, it wouldn’t be closing stores in the Carolinas, but the heaviest losses would be in Virginia, West Virginia, Tennessee, Alabama, and Kentucky. In late November, there was a buyout. Durational Capital Management bought the company for $16 a share. Durational is planning to revamp the chain and allegedly, it will be focusing more resources on its more profitable stores, closing down those that are losing money.
Bojangles
Krystal
This southern burger chain is similar to White Castle and it is famous for the bite-size burgers it serves. Just like its main competitor, White Castle, Krystal has had to close underperforming restaurants. It announced it would be closing down all of its locations in Jacksonville, Florida, though the staff members wouldn’t lose their jobs automatically. The second-oldest fast food restaurant in the South, Krystal allows employees to move to nearby branches. In addition, it has shut down all of its branches in Virginia.
Krystal
Denny’s
American restaurant Denny’s serves diner-style fare. It has been operating since the early 1950s, when it was established in Lakewood, California. Recently, it announced it would be undergoing some restructuring, which would target between 90 and 125 restaurants. The founders, Richard Jezak and Harold Butler, likely had no clue their business would have such an explosive growth. The diner chain has revenue of $630.18 million per year as of 2018. Currently, there are 1,685 Denny’s all over the world, 1,593 of which are located right here in the US. The restaurant is headquartered in North Carolina.
Denny’s
McAlister’s Deli
McAlister’s Deli was founded by Don Newcomb in Mississippi in 1989. Its parent company is Focus Brands. In 2017, the Deli announced it would be closing roughly 400 shops over time. The restaurant chain’s headquarters are in Atlanta, Georgia, and the sandwich shop is popular, especially in the South. In addition, McAlister’s has northern locations in Indiana, Illinois, and Ohio. Known for its famous Club Wrap, McAlister’s was established by a retired dentist and has 400 locations throughout the US.
McAlister’s Deli
Jason’s Deli
Jason’s Deli is a fast-food chain founded in 1976. It announced it would be shutting down all its remaining locations in Indianapolis, Indiana. This meant a closure of two stores, but it had already been closing stores in the area for some time. Since 1976, Joe Tortorice, Jr. has been its CEO and the location of its headquarters has remained the same – Beaumont, Texas. Deli’s first branch opened in Beaumont as well. The company is privately held, and specializes in fast-casual dining, comparable to Panera Bread or McAlister’s.
Jason’s Deli
Schlotzsky’s
Focus Brands owns this fast-casual dining eatery. Married couple Don and Dolores Dissman founded Schlotzsky’s in Austin, Texas back in 1971, but its headquarters are currently in Atlanta, Georgia. It has roughly 350 restaurant locations. It announced it was shutting down almost a dozen branches, but it is also planning to open new restaurants. Privately owned, the deli has locations all over the US, and it is particularly popular in the South. It specializes in sandwiches.
Schlotzsky’s
The Habit Burger
It was recently announced that the fast-casual burger chain The Habit Burger Grill had been bought out by Yum Brands for $375 million. The restaurant specializes in charbroiled burgers and other typical fare (onion rings, fries, etc.). The business was established in Santa Barbara, California in 1969. It has 281 locations now, with new headquarters in Irvine. In summer of 2019, the Grill announced it would be shutting down all of its branches in Orlando, Florida. The burger joint is currently open in 12 states and has an international presence, as it has six global locations.
The Habit Burger
Fleming’s Steakhouse
Bloomin’ Brands owns Fleming’s Steakhouse & Wine Bar, which means it is the sister company of Outback Steakhouse. Fleming’s has headquarters in Tampa and was founded by Bill Allen and Paul Fleming in California in 1988. Its first restaurant opened in Newport Beach, CA. According to Bloomin’ Brands, the Steakhouse would be closing roughly 43 locations to close down “underperforming brands.” Currently, the Steakhouse & Wine Bar has 69 locations.
Fleming’s Steakhouse
PizzaRev
This pizza shop’s specialty is make-your-own pizzas. PizzaRev closed three of its branches in Memphis, Tennessee quite abruptly, making headlines and surprising its customers. Nicolas Eckerman founded PizzaRev in 2012 and it has a subsidiary called Pie Squared Pizza, LLC. Currently, PizzaRev has roughly sixty 60 restaurants and it had some substantial expansion towards the end of 2016 which helped it increase its revenue. It brings in revenue of $32.9 million each year, and the restaurant chain’s average yearly sales change is 93.5%. PizzaRev is mainly known for local deals since some locations let children eat free on Mondays.
PizzaRev
Johnny Carino’s Country Italian
Founded in Austin, Texas in 1997, Johnny Carino’s has 55 locations, but it will be shutting down a few in the northeast. Creed Ford III and Norman Abdallah are two business executives who used to work for Brinker International and founded the chain. The chain’s parent company is Fired Up, Inc., which Ford III and Abdallah also own. In the past, Carino’s Italian struggled repeatedly and Fired Up, Inc. even filed for bankruptcy in 2016. It was the third time it filed for bankruptcy in just three years, but it was luckily bought out.
Johnny Carino’s Country Italian
PDQ
PDQ means “People Dedicated to Quality,” which was the idea for the PDQ chain of fast-food restaurants. Nick Reader and Bob Basham founded PDQ in 2011 and its headquartered are located in Tampa, Florida. It is similar to McDonald’s and Popeye’s, and it is especially popular in the South. PDQ is involved in donations to the military and police officers, onscreen and off. A PDQ in Farmington recently invited Robert Clohessy and Abigail Hawk from the TV show Blue Bloods for a meet and greet held at their restaurant. Here is a fun fact: One of its investors is NFL player Tim Tebow.
PDQ
Village Inn
The American casual chain Village Inn has headquarters in Nashville and it was established in 1959 by Merton Anderson and James Mola. American Blue Ribbon Holdings owns the chain, which has 212 restaurants so far. It first opened in Denver and was a pancake house before it moved to a southern location. In the early 1960s, it became a franchise and its first franchises opened in Tampa, Florida. In 1982, the business began publicly trading as VICORP Restaurants, Inc.
Village Inn
Pie Five Pizza
On NASDAQ, Pie Five Pizza trades as RAVE. It was established in June 2011 and now more than one hundred locations, with its headquarters in Texas. It is a subsidiary of Pizza Inn, and it specializes in baking a personal pizza within five minutes. PFP has continued to be expanded throughout the country by its owner, the Rave Restaurant Group. After a lawsuit over profits and sales, Pie Five announced that it would close down nine restaurants. It is still continuing to franchise restaurants, but the nine-restaurant closure was not insignificant.
Pie Five Pizza
Eat’N Park
Eat’n Park announced they would be shutting down five branches in Northeast Ohio in February 2020. Its famous Smiley Cookies is what most people know the chain for, and it has adopted a motto to accompany the cookies – “This is the place for smiles.” Headquartered in Homestead, Pennsylvania, Eat’n Park has been operating since 1949. It is estimated that 200 employees located in Chapel Hill, New Castle, Boardman, Willoughby, Mentor, and Medina, Ohio will be affected by the closures. The chain was established by William D. Peters and Larry Hatch, and it has locations in Ohio, Pennsylvania, and West Virginia. The chain employs more than 8,000 people across those three states.
Eat’N Park
Zaxby’s
This popular casual chicken restaurant offers various chicken dishes and “Zalads.” It has over 900 locations across the Southern states, and most of them are owned by franchisees. The company announced in December 2019 that it would be shutting down some of its branches. Many employees and customers were surprised by the sudden closure of Zaxby’s branches in Roanoke Valley. Locations in Tulsa, Oklahoma were also closed down to improve operations.
Zaxby’s
Raising Cane’s Chicken Fingers
Todd Graves and Craig Silvey founded Raising Cane’s Chicken Fingers in 1996, and the company is reportedly on its way to being a $2.5 billion business in 2020 after it cut underperforming restaurants in order to streamline revenue. It currently has over 450 branches, operating in 28 states. According to Business Insider, the chicken finger chain is “the fastest-growing restaurant chain in America”.
Raising Cane’s Chicken Fingers
Culver’s
Culver’s is known for its Butterburgers, frozen custard, chicken, fish, cheese curds, and salads. The Culver family: Lea, Ruth, Craig, and George founded the chain in Sauk City, Wisconsin and its headquarters are in Prairie du Sac, Wisconsin. It remains privately-owned and has branches mostly in the Midwest but has a scattered presence across 25 states. It has a revenue of $3.2 billion a year.
Culver’s
Freddy’s Frozen Custard & Steakburgers
The chain was established by the Simon family (Bill, Freddy, and Randy) and a family friend, Scott Redler, in Wichita, Kansas in 2002. Freddy’s Frozen Custard & Steakburgers is known for the frozen custard it serves. Its specialties include chicken sandwiches, Vienna beef hot dogs, and steakburgers. It has branches in 30 states and brings in roughly $304 million each year, and its revenue is growing.
Freddy’s Frozen Custard & Steakburgers
Portillo’s
This truly Chicago brand rarely shuts down branches, except for the one branch in the Midwest that it is closing. It is a fast-casual chain which was established in Villa Park, Illinois back in 1963 and currently has 60 locations. Its founder is Dick Portillo, and it is a subsidiary of the Portillo Restaurant Group, Inc. Initially, it went by the nickname “The Dog House” and serves some Chicago classics and other specialties, including deep-dish pizza, Maxwell Street Polish, Italian Beef, and hot dogs. The restaurant is known for serving some of Chi-Town’s best food.
Portillo’s
Buona
In 1981, married couple Joe and Peggy Buonavolantos founded Buona, a Chicago classic that serves Italian Beef, Chicago-style hot dogs and deep-dish pizza. It has 27 locations, 25 of which are restaurants and two are catering facilities. It has a revenue of $81 million per year. The privately-held company has locations in Illinois and Pennsylvania, and it is very much dedicated to veterans, offering quite good discounts. In addition, it has ventured into the health food sector.
Buona
Lou Malnati’s Pizzeria
Serving deep-dish Chicago-style pizza, Lou Malnati’s Pizzeria is headquartered in Illinois and was established in Lincolnwood in 1971. It is among the best-known local pizza joints in Chicago (though it also has a presence across the state’s upper part of) and has fifty-six locations. Chicago Food Planet included the privately-held company in its list of “Best In Chow”. Unfortunately, a branch or two had to be closed, but thankfully, not too often. Chicago’s Pizza Museum also features Lou Malnati’s Pizzeria.
Lou Malnati’s Pizzeria
Home Run Inn
Founded in Woodridge, Illinois, Home Run Inn has been around since 1947 and it is still a privately-held company to this day. In addition, it is a popular local Chicago joint. In spring 2019, the pizza chain announced it was closing its North Side, Lakeview location but there are still nine branches left. Home Run Inn is known for the pizza and beer combo.
Home Run Inn
Friendly’s
This restaurant chain operates mostly on the East Coast. Friendly’s has declared bankruptcy before it emerged from bankruptcy protection and revamped its menus. However, it still plans to close stores which don’t make money. Friendly’s was founded in Springfield, Massachusetts in 1935, at a time when the Great Depression was at its the worst yet it was able to survive that period. It currently has 167 locations on the Atlantic coast.
Friendly’s