Fast-casual dining used to be a big draw for hungry customers, but thanks to new innovations like food delivery apps, customers are frequenting these restaurant chains a lot less. Sadly, many of these restaurants have closed their doors thanks in part to diminishing demand and partially due to other circumstances. It’s possible that in coming years, some of these huge restaurant chains may be a thing of the past.
Applebee's
Applebee's has been around since 1980 after their first location opened its doors. The restaurant chain was doing very well initially, but over time, they started seeing a decline in sales that wasn't improving. The chain had no other choice but to close more than 120 of its locations.
The owner of Applebee's, Dine Brands, tried different methods to attract customers, such as offering healthier options, a new delivery method, and even serving $1 cocktails. Unfortunately, none of these had worked, and the chain is likely to close another 20 locations this year.
Carrabba's Italian Grill
Owned by Bloomin' Brands, Carrabba's Italian Grill was founded in 1986 in Houston, Texas. The family-style Italian restaurant chain gained popularity and opened many new branches in the country.
All seemed to be going well for Carrabba's Italian Grill until they started noticing a decline in sales. Fewer and fewer customers showed up at the restaurant, and Bloomin' Brands had to close locations with the lowest performance. This year, 43 locations were closed.
Sbarro
Sbarro has been around for 20 years. At first, the chain proved to be very successful, but their revenue started to decline as the years went by. Customers claim the sudden drop in sales has to do with the quality of the food, especially their pizza.
Sbarro has another significant disadvantage – it doesn't deliver. Most of the restaurants are located in food courts, and since shopping malls are becoming a thing of the past, the chain is suffering. Several hundreds of its locations were closed, including the famous one in Times Square.
Ruby Tuesday
Ruby Tuesday was founded in 1972. Many people loved the chain for its high-quality fresh food and great cocktails. As time went by, the chain began lowering its standards, and the customers noticed the sudden drop in food quality.
Ruby Tuesday was no longer associated with unique cocktails and fresh meals. Between 2018 and 2020, the chain closed 76 of its locations. Owned by NRD Capital, Ruby Tuesday made a statement regarding its future, claiming they will make it as long as they "deliver on the basics."
Krystal
This chain is famous among people living in the South. Some of Krystal's menu items are similar to those of White Castle. The chain has 360 locations across the United States, but some recently had to close their doors due to financial difficulties.
Krystal filed for bankruptcy in January 2020 due to the dept of $50-$100 million. Currently, there are 116 franchise locations and 182 company-owned ones. All of Krystal's locations will likely disappear in the next few years.
Bar Louie
Many once knew Bar Louie for its great food and happy hour cocktails. However, the chain isn't doing well at the moment due to substantial dept. As a result, several locations had to close their doors forever, and the chain's future is uncertain.
When Bar Louie was still doing well, they had 134 locations across the country. However, after expanding too fast, the chain's sales began to fall. Bar Louise is now facing over $100 million in dept. They currently own 79 locations, with more of them closing every year.
Houlihan's
Similar to Bar Louie, this chain was also once known for its happy-hour drinks. Houlihan's was successful for four years before they started seeing a decline in revenue. For some reason, the younger generation was not interested in the chain, which has led to massive losses. In 2019, the former owner of the chain, HRI Holding Corp, filed for bankruptcy. That same year, Landry's bought the chain for the amount of its debt ($40 million).
Hooters
It's safe to say Hooters has seen better days. The tiny waitress outfits aren't increasing the sales like they used to. The chain has been seeing a slow decline in revenue in the last ten years.
More than 7 percent of their locations have been closed, and they lost millions of dollars in potential earnings. The chain tried to change things up by renaming some of their locations to "Hoots" and dressing the waitresses more conservative.
Boston Market
Boston Market has opened more than 1,100 locations in the '90s. Things haven't been going well for the chain in the last few years, and they're now left with only 400 locations. Moreover, their menu hasn't been updated in years, and the younger demographic isn't attracted to the Boston Market. The chain had no other choice but to file for Chapter 11 and close 700 of its locations.
Papa John's
From handcrafted specialty pizza menu options like The Meats, Super Hawaiian and Zesty Italian Trio to BBQ Chicken & Bacon, Papa John’s certainly sounds like a pizza lover’s dream come true. But the quality of the pizza leaves a lot to be desired and that’s not the only thing that put a bad taste in people’s mouths. Even the founder of the company has expressed his distaste for their pizzas.
Golden Corral
Golden Corral is one of the oldest chains in the United States. They opened their doors in the early '70s. Customers loved the chain for its all-you-can-eat buffet. As times started to change, people began losing their interest in buffet-style restaurants.
The chain also started suffering big losses due to the rise of health awareness, and hundreds of their locations had to be closed. There are currently 500 locations left in the country. Golden Corral decided to remodel and rebrand their restaurants in an attempt to survive.
Ponderosa Steakhouse
Ponderosa Steakhouse and Bonanza Steakhouse are both owned by the Homestyle Dining company, and both locations have similar menus and similar histories. Ponderosa offers steaks, seafood and chicken entrees, as well as a multitude of options at their buffet.
But like other buffet-style restaurants, Ponderosa Steakhouse is declining in popularity. The restaurant chain started operations in 1971 and had about 300 locations by 2016, but closures may be imminent as is suspected from news of many locations around the U.S. and Canada. The chain was acquired by franchise Johnny Rockets in 2020 for $25 million.
Steak 'n Shake
Steak 'n Shake is the oldest restaurant chain in the country. It was founded all the way back in 1934 and eventually expanded from the U.S. to Europe and the Middle East. Sadly, things haven't been going well for the chain over the last few years, and they had to close some locations to cut losses. Steak 'n Shake is in the process of rebranding, as they had to close more than 100 of its locations.
Joe's Crab Shack
Ten years ago, Joe's Crab Shack used to have nearly 140 locations across the country. Today they barely have 60 spots left. They're facing a $16.6 million loss and had to file for bankruptcy in 2017.
The chain closed 41 of its locations, and none of the employees working there received any notice. They increased their prices and employee's wages, which didn't go unnoticed by the customers. Overall, the chain is likely to disappear altogether.
Noodles & Company
Noodles & Company has been facing financial hardship for quite some time now. The chain closed many of its locations across the country in the last few years. Fifty-five of their spots were closed in 2017, and in 2018, they closed ten more.
Noodles & Company tried to fight the losses by introducing new menu items, such as vegetable noodles, but that didn't make a difference. The future of Noodles & Company is uncertain, and they will likely close more of their locations.
Old Country Buffet
Old Country Buffet was founded in 1983 and instantly became popular among consumers. Buffet-style restaurants were a big hit in the '80s and '90s, so it's no surprise this chain was a big hit. People loved Old Country Buffet for its reasonable prices and large portions.
At some point, the chain had more than 700 locations across the United States. Old Country Buffet was recently hit with major losses and went through 3 bankruptcies. More than 400 of their locations were shut down, with only 17 of them currently operating.
The Cheesecake Factory
The Cheesecake Factory is one of the most popular fast casual dining franchises in the United States, but even this brand has faced some serious setbacks. The Cheesecake Factory was founded in Los Angeles in 1972 and although the company is nearing its 50th anniversary, about 10% of the restaurant’s locations have been forced to close since the beginning of 2020.
TGI Friday’s
TGI Friday’s is famous for their many promotional deals and although the chain has remained popular in recent years, the company reported a loss in revenue in 2019 and are underperforming compared to other franchises. Currently, there are over 300 TGI Friday’s locations in the United States and 500 other locations around the world.
Red Robin
Red Robin has been suffering financial hardship due to receiving fewer customers and the rising cost of labor. The chain is on the verge of closing for good. The year 2018 was especially difficult for Red Robin as they suffered a loss of $10.6 million.
Poor customer service and health scares are part of the problem. According to a report by Macro Axis, the company is 43% likely to file for bankruptcy at any time now.
Friendly’s
Friendly's used to be the place families gathered for delicious ice cream and diner-style meals, but this is a thing of the past. Friendly's used to have 500 locations across the United States, but they had lost several patrons over the last few years due to the changes in the market.
As a result, the chain has closed many of its locations across the country and filed for bankruptcy in 2011. They hoped this would help them to survive, but it did more damage than good. Currently, Friendly's has only 167 locations left.
Qdoba
Qdoba also found itself in deep trouble. Founded in 1995, the chain was initially doing very well, but after ten years, their sales started to drop. Jack in the Box used to own Qdoba but eventually sold it to Apollo Global Management in 2017.
The sudden decrease in sales has to do a lot with health scares, as fewer and fewer people trust the chain. There are currently 700 locations across the U.S., with more of them closing every year.
Buffalo Wild Wings
Buffalo Wild Wings is one of the most popular sports bars in the United States and they have over 1,200 locations globally as of November 2020. But the chain recently raised their prices by 10% to cover rising labor and food costs, driving away customers. After the increase, many franchises saw a decrease in business.
Checkers and Rally’s
Checkers and Rally’s cater to customers in 28 states across the U.S. and specialize in hamburgers, hot dogs and other popular fast food items. But the small fast food franchise has been closing locations every year due to diminishing sales and some of the decrease in popularity is due to health code violations at a few of their locations.
Jack in the Box
Jack in the Box may not be as popular as other fast food chains like Burger King or Wendy’s, but they have over 2,200 locations as of 2020. Sadly, recently released business reports state that many of their locations are operating at a loss and have been for many years. It’s hard to tell if these locations will be able to bounce back or if they’ll be forced to close for good.
Roy Rogers
Roy Rogers is a restaurant chain that caters to the Mid-Atlantic and Northeastern United States. Their menu consists of hamburgers, roast beef sandwiches and fried chicken, and there are 43 Roy Rogers locations nationwide. But there were once over 600 Roy Rogers locations in the country at it appears that the brand is still declining in popularity, as is its namesake, actor and singer Roy Rogers.
Baja Fresh
Baja Fresh Mexican Grill was founded in the '90s. At some point, the chain had 300 locations across the country. The meals were made with fresh ingredients, and their famous "Salsa Baja" was put on everything. Another significant advantage of this chain was their legendary salsa bar.
At the beginning of the '00s, Wendy's bought Baja Fresh, and that's when the sales began to decline. The company eventually sold the chain to cut their losses, and now there are only 165 locations left.
Fuddruckers
Fuddruckers began operating in the late ‘70s in Houston and claimed they had “the world’s greatest burgers.” The customers seemed to agree with their statement and brought them a lot of revenue. But sometimes having good food isn’t enough to survive.
Fuddruckers found itself in a challenging situation during a financial crisis in 2008. There are only 150 of their locations left, and the chain is now under the Luby’s name. It’s uncertain whether the chain will survive the current pandemic or not.
O’Charley’s
O’Charley’s is popular in the Midwest and the South, and as of 2019, there are over 150 locations still open. But the company has been steady closing locations over the past few years including eight locations in July of 2019 and a Florida location in April of 2019. These closures may be due to news of lawsuits involving customer safety and employee wage payment defaults.
Quiznos
Quiznos is a sandwich shop, but they are often overshadowed by the more popular Subway brand. Although there are hundreds of locations across the U.S., Quiznos has been steadily closing some of their hundreds of locations in recent years. The company once had 4,700 locations worldwide, which has dwindled to about 1,500 locations in the following decade.
Bojangles'
Bojangles' Famous Chicken ’n Biscuits was founded in 1977 and the restaurant chain specializes in cajun-seasoned fried chicken and buttermilk biscuits among other Southern specialties. The restaurant has had locations areas as far as China, but in recent years, their most popular locations have remained in the Southern U.S. The company has closed most of its locations in states like Virginia, Alabama, Tennessee and Kentucky, but the company is currently trying to implement changes to bring in new customers.
IHOP
IHOP has been around since the 1950’s and although they have changed their menus frequently to cater to changing tastes, the chain just can’t keep up with their customers’ demands. Many diners may remember the brand’s inclusion of burgers to their menu, which included a promotional name change as “IHOB,” but the franchise has still closed about 40 locations in the last three years.
Luby's
Texas chain Luby’s is known for their deep-fried fare, but not everyone in the country is familiar with this comfort food brand. Although the franchise had over 200 locations in 11 states in 1996, the brand has dwindled in popularity since then, closing 84 of its locations in 2019 alone.
Taco Bell
This fast-food chain is suffering due to the global crisis, financial hardships, and competition. While Taco Bell is a pop-culture symbol, this doesn’t mean they are safe from going bankrupt. In fact, there have been quite a few health concerns within the company, but they don’t seem to be working on solving this at the moment.
Six of Taco Bell’s locations were closed in 2019, and this is not a good sign for the chain that spent years growing and evolving.
Subway
Subway has seen many ups and downs throughout its time in the industry. It was once considered a healthy choice restaurant chain with plenty of healthy options and superior marketing. However, soon people realized that the ingredients Subway uses in their sandwiches aren’t as healthy as they seem.
Subway began shutting down its locations in 2014, and by 2018, 1,100 of their locations were closed. There are still around 24,000 locations in operation, but the company is planning to close more of them in the nearest future.
Marie Callender's
Many people are only aware of the Marie Callender’s brand frozen foods that are available in grocery stores nationwide, but the brand was founded as a restaurant in 1948 and there are still 29 locations of the chain as of 2021. In 2011, a total of 31 locations were closed due to bankruptcy and the remaining locations are primarily in California, Nevada and Utah.
McCormick & Schmick's
McCormick & Schmick's operates under the same company that owns Bubba Gump Shrimp Company, but there are far fewer locations of this dwindling brand. As of 2019, there are only 26 locations still open in the United States, although there were once 85 locations across the country. Sadly, few patrons frequent these restaurants and it’s clear that the chain may close for good in the near future.
Chipotle
While many people still regularly visit this restaurant chain, not many are aware that Chipotle has been suffering greatly. Its first location was opened in 1993, and it instantly became a hit among consumers. However, Chipotle found itself in a challenging situation due to rising health concerns.
Fewer and fewer customers began visiting Chipotle, and their sales have dropped rapidly. Between 2019 and 2020, 65 of their locations have closed across the country.
Burger King
It looks like even the big chains like Burger King aren’t safe these days. Despite being one of the most popular food chains in the world, Burger King is also not doing well at the moment. As a result, they had to close more than 100 of their locations in the last few years. In 2019, Burger King closed 250 of its locations to avoid filing for bankruptcy.
Pizza Hut
Pizza Hut used to be one of the most popular restaurant chains in the country. People went there for family nights out, dates, birthday parties, and quick lunches. These days, many would rather go to an Italian restaurant instead and treat themselves to a high-quality meal. Now, Pizza Hut only does takeout, and 450 of its locations are closing this year.
Carl's Jr.
Carl's Jr. first opened its doors as a drive-in barbecue restaurant in 1945 and although there are hundreds of locations worldwide, the company is seeing increased closures in recent years. In 2020, the company abandoned their indoor dining services in favor of drive thru, pick-up or take-away services, which has seen some customers abandon the franchise altogether.
Kona Grill
This restaurant chain has brought Asian cuisine to the United States. The first location was opened in 1998, and Kona Grill soon became one of the most profitable restaurant chains in the country. Sadly, five years ago, their revenue started to drop. In order to survive, the chain began cutting costs on the service and the food, which didn’t go unnoticed by the customers. In 2019, the chain filed for bankruptcy.
Perkins
Founded in the late ‘50s, Perkins began operating in Cincinnati, Ohio, and instantly became a hot spot. The chain was known for its delicious buttermilk pancakes, and some called it “the pancake house."
Perkins was doing very well for a while until a few years ago when the company was left with no other choice but to file for bankruptcy. Since 2011, the chain has been closing more and more of its locations. Some stores were closed without any warning.
Starbucks
This is not the chain you would expect to see on this list, considering how popular it is in many countries around the world. Starbucks has also been going through a rough time in the last few years. As a result, many of Starbucks’ locations were permanently shut down.
In 2019, the company closed 150 of its locations. However, it still has 30,000 spots left, which is a significant amount. Unfortunately, the closing trend doesn’t seem to be slowing down, and it’s likely that more of their locations will be closed soon. Poor performance was the reason for the closure.
Hometown Buffet
Since buffet-style restaurants are no longer as popular, fewer and fewer people are visiting the Hometown Buffet. This chain was once a popular spot where customers could enjoy tasty food at a reasonable price.
These days, people are less likely to go to a restaurant that offers greasy food even if it’s very delicious. Hometown Buffet had no other choice but to file for bankruptcy for the third time. Ninety-two of their locations have been permanently closed in 2019 alone.
Pie Five
Pie Five is a pizza brand that offers made-to-order personal pizzas, but they have suffered dozens of closures in the last decade. In 2019 alone, Pie Five closed 8 of their locations due to drops in sales. It seems like pizza fans are either shopping at more popular pizza franchises or splurging on homemade pizza instead of visiting Pie Five.
Eat'n Park
Eat'n Park is a cult favorite in Pennsylvania, but the chain isn’t known to many people outside of that area. The restaurant’s most famous offering is their smiley face cookie, but although there were once over 75 restaurants, the chain has decreased this number to 59 as of 2020. Even though the chain is a staple in the area, there isn’t enough demand to keep their doors open.
Pollo Tropical
Pollo Tropical first opened its doors 34 years ago in 1988 and although the chain used to be popular in Florida and Georgia, all of the franchise’s Georgia locations have recently closed due to low sales. There are still 141 locations open in the state of Florida, but the brand has proven to not be popular in other states.
Taco Cabana
Owned by Fiesta Restaurant Group, Taco Cabana is also not doing well at the moment. The owners announced that 19 of the chain's locations would be closed this year to improve their financial situation.
"These closures eliminate all stores with significant losses, which we expect will result in a highly viable portfolio of restaurants," stated the CEO of Fiesta Restaurant Group. Thirty-eight locations are currently operating in New Mexico and Texas.
Potbelly Sandwich Shop
Potbelly Sandwich Shop is a fast-casual restaurant chain that offers sub sandwiches and milkshakes, but they have continually failed to find their footing among changes in the fast food industry. The chain partnered with DoorDash in 2019 in an attempt to get more regular diners, but the brand had to close 22 of their locations that year due to poor sales.
Denny's
Denny’s used to be a coffee shop called Denny’s Donuts. It was founded in 1953 and quickly transformed into a restaurant chain. They expanded to different states and even other countries.
While there are currently more than 1,500 locations of Denny’s nationwide, 15 of them had permanently close. The future of this restaurant chain is uncertain, but as long as they don’t get involved in more discrimination lawsuits, they should be in the clear.
Tad’s Steaks
Tad’s Steaks first opened in New York City in 1960 and since then, the restaurant became a popular chain offering affordable steak dinners. But the once iconic brand closed its flagship store in January of 2020, stating that they were closing due to economic troubles. There is still one functioning location in San Francisco, but the chain once had 28 locations across the country.
Pieology
Pieology is a chain that offers a make-your-own-pizza option, similar to Chipotle and Subway’s offerings, but the California-based chain isn’t as high in demand as their competitors. Pieology currently has locations in 21 states, but many of these have faced closures in recent years. Four of the five Pieology locations in Michigan recently closed due to “unfortunate circumstances beyond our control."
Brio Tuscan Grille and Bravo! Cucina Italiana
Brio Tuscan Grille and Bravo! Cucina Italiana are both owned by the FoodFirst Global Restaurants company, which unfortunately filed for bankruptcy in April of 2020. After this announcement, Brio Tuscan Grille closed 71 of their 92 locations, but there is still a chance that these restaurants could survive their downsizing and continue to operate in the future.
Zinburger
2020 was a tough year for many restaurants, including Zinburger, which closed 15 of their locations in 2020 alone. The chain still has nine other locations, which are located across the East Coast and in Arizona. Zinburger addressed their closures by saying, “Sadly, Zinburger is not able to reopen all locations as a result of the shut-down caused by the pandemic.”
TooJay’s
It looks like even the most profitable restaurant chains are at risk of going bankrupt. Founded in 1981, TooJay’s began operating in Palm Beach. For over 40 years, this chain has been serving dinner entrees, traditional gourmet items, handcrafted sandwiches, and other options.
In April 2020, the chain has filed for bankruptcy due to the coronavirus pandemic and received a $6.4 million Paycheck Protection Loan to cover expenses and payroll.
Benihana
Benihana is an iconic restaurant company that offered Japanese cuisine served table-side. The restaurant was founded by Hiroaki Aoki in 1964 and grew to have over 100 locations across the world. But unfortunately, the brand’s popularity has dwindled in recent years and there are only about 76 locations remaining open today.
Sonic
Known as “America’s favorite drive-in,” this chain hasn’t been doing well lately. Sonic’s quarterly reports had significantly dropped in 2019. CEO Cliff Hudson claims this is a result of "continued aggressive discounting by the competition” and “unfavorable weather."
The chain is currently working on improving the quality of its food and attracting the young generation. Sonic now offers half-priced shakes during certain hours of the day, as well as an order-ahead smartphone app.
Papa Murphy's
Papa Murphy's was founded in 1995 when two local pizza companies, Papa Aldo’s Pizza and Murphy’s Pizza, merged. Since then, over 1,500 Papa Murphy’s locations have opened around the world, and although the company sees hundreds of million of dollars in revenue each year, the chain’s popularity is decreasing in favor of delivery pizza chains. The company was sold to MTY Food Group in 2019 for $190 million.
Hard Rock Cafe
Hard Rock Cafe is one of the oldest fast-casual dining chains in the world, having opened its doors to the public in 1971. The chain also owns a number of cafes, hotels and casinos, but its restaurants are sadly closing a lot of locations in recent years. In May of 2020, the Houston location was permanently closed and two more locations in California closed shortly after.
Pappas Restaurants
Texas Monthly named Pappas Restaurants the best steakhouse in Texas in December 2007. Founded in 1976, this family-run business once had more than a hundred restaurants across the United States.
There were only 90 locations left in 2020, which were cut down to 85 due to the global crisis. Five of their 49 locations in Houston were permanently closed. Will the chain survive and continue to spoil us with its delicious steaks? We sure hope so!
Rubio's Coastal Grill
Known for its delicious fish tacos, Rubio's Coastal Grill is a Mexican chain founded by Ralph Rubio. A spring break with his friends is what inspired him to open this restaurant. While the chain is not currently in danger of disappearing entirely, 12 of their locations in Florida and Colorado were shut down due to the coronavirus pandemic. There are currently 17 locations left in Nevada, California, and Arizona.
Le Pain Quotidien
Le Pain Quotidien is famous for their long, communal tables in all of their locations, which has recently become less of a selling point for customers. The chain also serves baked goods, sandwiches and salads, but due to difficulties in 2020, the chain closed more than half of its branches. Later that year, the company filed for bankruptcy, but continues to operate 35 of its 98 locations.
Del Frisco’s Grille
Del Frisco’s Grille is another restaurant that has been acquired by a larger company to continue operations. The popular steakhouse was acquired for $325 million in 2018, before being sold to Landry’s restaurant group in 2019. After the sale, multiple locations closed including restaurants in Washington, D.C., Maryland and Massachusetts.
Tim Hortons
If you’re located in Canada, you don’t have to worry about Tim Hortons locations shutting down. The Tim Hortons branches located in the U.S. are the ones in danger. In 2019, more locations were closed in the United States than opened.
Several locations across the country are seeing a decline in revenue due to different factors. The main threats the chain is facing are competition with other coffee chains, franchisee problems, and regionalization.
PizzaRev
This Southern California-based chain has also been seeing a decline in revenue over the last few years. According to reports, PizzaRev was already in trouble before the Covid-19 pandemic even began. In 2016, the chain had 44 restaurants, but it fell to 32 within three years. PizzaRev has so far closed down more than half of its locations. There are currently only 13 PizzaRev restaurants left in the United States.
Specialty's Cafe & Bakery
Specialty's Cafe & Bakery is known for its delicious sandwiches, soups, salads, and cookies. They’ve been operating for over 33 years in Illinois, California, and Washington. Sadly, in May 2002, they announced that 40 of their locations would be permanently closed.
“Current market conditions attributed to COVID-19 and shelter-in-place policies have decimated company revenues. We sincerely thank you for your business and support over the years," they explained on their website.
Souplantation and Sweet Tomatoes
Souplantation and Sweet Tomatoes opened its first location in 1978 in San Diego, California. The chain quickly became popular and was doing well until 2020, when the global pandemic hit the world.
Souplantation and Sweet Tomatoes temporarily closed 97 of its locations in March 2020. Unfortunately, just two months later, the restaurant chain had gone out of business entirely. The reason for that was because they couldn’t find a solution to their operational model.
Dave & Buster's
Dave & Buster’s is also, unfortunately, not doing well. The chain is at a high risk of facing a complete shutdown. Dave & Buster’s doesn’t offer takeout and delivery, and that’s the only way we can enjoy a nice hot meal these days.
Since the chain also makes money from the games it offers inside the restaurant, the temporary closure has also affected that part of their income source. They could possibly go out of business if the situation remains as it is now.