Inflation is hammering the restaurant industry hard and there’s been a huge uptick in the number of restaurants closing. Here are 20 beloved restaurant chains that have either closed or are on the brink of shutting down for good.
20. Applebee’s
Founded in Atlanta Georgia in 1980, Applebee’s is one of the largest sit-down restaurant chains in the US. In 1998, the company opened its 1000th restaurant. IHOP Corp., later renamed Dine Equity, purchased the company for 2.1 billion in 2007. This year, the company announced it will be shuttering 25-35 locations across the US, after closing 33 restaurants in 2023.
19. Krystal
Founded in Tennessee in the early 1930s, Krystal is beloved in the South for its melting breakfast sandwiches, loaded hotdogs, beefy creations, and tater tots. But despite weathering the Great Depression during its nascent years, after struggling during the pandemic, in 2020, the company filed for bankruptcy. The company is trying to re-franchise to survive.
18. Cracker Barrel
Cracker Barrel is a southern and country-store-themed restaurant chain that was founded in 1969 in Lebanon, Tennessee. As of 2023, it operated 660 stores in 45 states. Cracker Barrel plans on closing four locations in three states this year. Customer visits are on a downward trend. Leadership faults cost-conscious consumers, a guest experience gap, and weak marketing.
17. Pie Five Pizza
Founded in Fort Worth Texas in 2011, Pie Five Pizza operates 33 restaurants in 11 states. The name “pie five” stands for a customized pizza in five minutes. Unfortunately, Pie Five has shuddered 66% of its original locations. The parent company operates another chain, “Pizza Inn” and may be transitioning Pie Five locations into their more successful cousin.
16. TGI Fridays
Founded in New York City in 1965, TGI Fridays once was a massively popular casual dining chain featuring American cuisine, thanks to lots of television commercials. The company operates over 600 locations in 55 countries. This year, TGI Fridays will permanently close 36 US locations. However, they’ve offered transfer opportunities to over 80% of the “total impacted employees.”
15. Pancho’s Mexican Buffet
Founded in 1958 in Dallas, Texas, Pancho’s Mexican Buffet is a Tex-Mex restaurant chain. At its prime, there were 140 locations. With new ownership, the company began to flounder. As of September 2004, there were 40 locations in 6 states. As of 2023, there are only three locations left, two in Dallas-Fort Worth and one in the Houston area.
14. Denny’s
Founded in Lakewood, California in 1954, Denny’s operates over 1700 restaurants in multiple countries. By 1991, there were 1000 restaurants in all 50 US states. After a 47% acquisition in 1992, by 1997, Denny’s parent company filed for Chapter 11 bankruptcy. The company has struggled ever since. Last year Denny closed 57 locations. This year they anticipate shuttering 10-20 more.
13. Tijuana Flats
Founded in Winter Park, Florida, in 1995, Tijuana Flats is a chain of Tex-Mex restaurants. The company operates roughly 91 locations throughout Alabama, Florida, North Carolina, and Tennessee. In April, the company filed for Chapter 11 bankruptcy protection and closed 10 restaurants in Florida and one in Virginia. The chain was recently acquired and is under new ownership, Flatheads LLC.
12. Boston Market
Founded in Newton, Massachusetts in 1985, Boston Market is known for its home-cooked-style take-out meals. Primarily focused in the Northeastern and Midwestern US, the chain has a large presence in California, Florida, and Texas. By 2020, Boston Market operated 342 company-owned restaurants in 28 states and Puerto Rico. In 2023, locations fell to 300. By 2024, only 27 locations remained.
11. Buffalo Wild Wings
Founded in Columbus, Ohio, in 1982, Buffalo Wild Wings is a sports bar/casual dining restaurant with locations in every US state and six other countries. By 2020, the chain operated 1,279 locations. This year, the company shuttered all its Canadian locations. The company was sued over its wings, admitting it used chicken breast prepared and fried to look like wings.
10. Red Lobster
Red Lobster was founded in Lakeland, Florida in 1968. The chain was popular for its affordable seafood. It blundered in 2003 with two promotions featuring endless snow crab legs and took a $3 million loss. In May 2024, the company closed over 100 restaurants in 28 states and filed for Chapter 11 bankruptcy with outstanding debt exceeding $1 billion.
9. Fuddruckers
Founded in San Antonio, Texas in 1979, Fuddruckers is a hamburger chain that grinds its own meat and bakes its buns on the premises. By 2019, the company operated 49 company-owned restaurants and 100 franchises across the US and internationally. But a downslide began after the acquisition by Luby’s in 2010. Currently, only 60 US Fuddruckers locations remain.
8. MOD Pizza
Founded in Seattle, Washington in 2008, the chain operated more than 560 US locations as of 2023 and two in Canada. “MOD” stands for “made on demand.” Customers appreciate its use of organic dough. But in the first quarter of 2024, the company closed 26 locations. Of the five closures in California, the chain says the minimum wage law wasn’t a factor.
7. White Castle
Founded in Wichita, Kansas in 1921, White Castle is credited with being the world’s first fast-food hamburger chain. It’s famous for its small, square hamburgers called “sliders.” White Castle’s biggest problem is a lawsuit from a manager that may cost the company $17 billion. Illinois also sued the company and the enormous potential fine could be the company’s death knell.
6. PDQ
PDQ was founded in Tampa, Florida in 2011 by Outback Steakhouse co-founder Bob Basham and MVP Holdings CEO Nick Reader. PDQ is a regional fast-food chicken chain operating in Florida, North Carolina, South Carolina, New Jersey, and New York. The company has recently announced that they were shuttering eight of their locations in the Carolinas.
5. Old Country Buffet
By the time of this writing, Old Country Buffet went defunct. There are currently no restaurants operating under Old Country Buffet, which is now owned by Ovation Brands, formally VitaNova Brands. The parent company owned several buffet-style sit-down restaurant chains including Old Country Buffet, HomeTown Buffet, Ryan’s Buffet, and Curry House. All of the locations of these restaurants have closed.
4. Outback Steakhouse
This Australian-themed casual dining restaurant chain was founded in Tampa, Florida in 1988. It swelled to over 1000 locations in 23 countries throughout North America, South America, Asia, and Australia. Parent company Bloomin’ Brands shuttered 41 restaurants across its brands, which include Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s.
3. Furr’s Fresh Buffet
Founded in Hobbs, New Mexico, in 1946 Furr’s has gone by many names including Furr’s Cafeteria, Furr’s Family Dining, Furr’s Fresh Buffet, and Furr’s All-You-Can-Eat Marketplace. Furr’s became known for their cafeteria-style dining and eventually evolved into buffet-style dining. In 2021, Furr’s parent companies filed for Chapter 11 bankruptcy. Eventually, all locations were permanently closed. The company is now defunct.
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2. Steak ‘n Shake
Founded in Normal, Illinois, in 1934, Steak ‘n Shake has its primary presence in the Midwestern US, with other locations in the South, mid-Atlantic, the West, Europe, and the Middle East. In 2018, 628 locations operated in the US. But by the end of 2023, it fell to 493 and more continued to close.
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1. Hardee’s
Founded in Rocky Mount, North Carolina, in 1960 Hardee’s is a fast food chain owned by CKE Restaurants Holdings, Inc., the parent company of Carl’s Jr. The two burger chains share a similar logo but are separate brands according to the company. In 2023, Hardee’s shut down 39 stores. Closures continue in Illinois, Missouri, and Tennessee.
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