There was a time when major restaurant chains were thought to be impervious to all predicaments. That was, of course, before COVID-19 altered our world as we knew it. Some chains were forced to close a few stores, while others had to permanently close their corporate offices. From Outback Steakhouse to TGI Fridays to IHOP, there are some real heavy hitters on this list. Even “healthy” fast-food restaurants like Subway and Chipotle are experiencing a drop in business. Do you think these restaurant chains will go out of business?
These Beloved Fast Food Stores Might Close Down This 2021
Applebee’s
By the end of the year, Applebee’s plans to close over 200 underperforming locations. As millennial customers continue to make up a larger share of the potential customer base, they struggled to find a new core demographic. In order to attract millennial customers, the company invested millions of dollars in renovations and menu changes. This hasn’t worked, as Applebee’s management team seems to acknowledge. Applebee’s has been attempting to return to the preferences of its original Baby Boomer demographic by closing restaurants year after year.
Applebee’s
Burger King
Burger King announced in August 2020 that they expect to close several hundred locations. “Burger King executives said the company plans to close 200 to 250 low-volume locations per year over the next couple of years,” even before the pandemic hit the U.S. market.
Burger King
Boston Market
Boston Market, known for its Thanksgiving-style fast food, has been in financial trouble since declaring bankruptcy in 1998. It should come as no surprise that the pandemic wreaked havoc on a business that was already in decline. Former CEO Frances Allen stated last year that the closures were necessary in order for the company to survive in the long run. In 2019, Boston Market closed 45 locations.
Boston Market
Denny’s
According to WARN notices filed by a Denny’s franchisee, the company closed 15 locations in New York and one corporate location due to “unforeseeable business circumstances prompted by COVID-19.” More franchisees are expected to request permanent closures, but Denny’s executives say the chain is “not at that point right now.”
Denny’s
Ruby Tuesday
There’s a good chance that the nearest Ruby Tuesdays has already closed its doors in most American cities. Ruby Tuesday used to have restaurants in a lot of malls, but each year, more and more of them close. This was exacerbated by the resignation of then-CEO JJ Buettgen and the company’s sale to NRD Capital in 2017. Since 2009, more than 400 Ruby Tuesday locations have closed across the country.
Ruby Tuesday
Hooters
There’s no denying that Hooters restaurants revolutionized the industry. Few restaurants embrace beer and boobs quite like Hooters, with short shorts and low-cut shirts that reveal a young waitress’s midriff. Hooters, on the other hand, has had a rough decade. As sales stagnated in the 2010s, the restaurant chain closed a number of locations. There’s a theory that the chain’s sales model isn’t connecting with younger customers, so it’s responding by launching Hoots, a new restaurant concept with more modestly dressed waitresses.
Hooters
Subway
While Subway’s motto is “Eat Fresh,” the company’s recent scandals suggest otherwise… Jared Fogle, a former spokesman for Subway, was sentenced to prison for possessing child pornography. Sales were undoubtedly harmed as a result of this. Furthermore, customers are becoming increasingly concerned about what is in their food and how it is produced. As a result, Subway has lost up to 25% of its traffic in recent years. In response, the restaurant has updated its logo and sourced better ingredients, such as antibiotic-free chicken and cage-free eggs.
Subway
Pizza Hut
Pizza Hut is in an odd position because it is owned by a major corporation but is regarded as one of the worst pizza chains in the country. Much of this is due to the consistently poor quality and taste of its offerings. Yum! Brands, the company’s parent company, is the only thing that can save it at this point. It has more than enough funds to keep Pizza Hut afloat, but it is not profitable. Pizza Hut will most likely close if nothing changes soon, allowing investors to keep more of their money.
Pizza Hut
Papa John’s
Papa John’s has been in hot water recently due to declining sales, but the company’s founder, John Schnatter, made matters worse in 2018 with some disparaging racial remarks. He has since been removed as the company’s CEO, but his actions continue to have an impact. As more information about the company’s negative work environment became public, sales continued to plummet. If customers continue to boycott the chain, it’s not impossible that it will close down.
Papa John’s
Buffalo Wild Wings
Buffalo Wild Wings is a new restaurant chain that is experiencing financial difficulties. Despite the fact that the first “BDubs” restaurant opened in 1982, the current franchise model has only been in operation since 1998. The chain’s problems have been attributed to a number of factors, including the rising cost of chicken wings as a result of its popularity and the trend among young people to order takeout or cook at home, making it difficult to maintain high sales volume. Buffalo Wild Wings was purchased by the same parent company that owns the fast-food chain Arby’s in 2017.
Buffalo Wild Wings
TGI Friday’s
TGI Friday’s is another well-known casual dining establishment in the United States. TGI Friday’s, which first opened in 1965, is known for its drink specials, appetizers, and burgers. In recent years, however, fast-casual restaurants like Chipotle and PDQ have had a negative impact on their sales. The restaurant’s unlimited appetizers promotion is popular, even if it isn’t as profitable as regular menu orders. Customers who order endless appetizers may experience slower service, according to Yelp and Google reviews.
TGI Friday’s
Cheesecake Factory
With younger and more health-conscious audiences, the Cheesecake Factory is in serious trouble. The food may be tasty, but it’s also high in empty calories, which most people aren’t interested in. Furthermore, the prices are quite high, and many of the stores are in unusual locations. To put it another way, the chain is losing favor with a changing demographic that is actively opposed to the things that make Cheesecake Factory what it is. It’s difficult to see how this problem could be solved without a fundamental shift in the restaurant’s core concept.
Cheesecake Factory
Chipotle
A food scare is one of the most surefire ways for a restaurant chain to close, and Chipotle has had several in recent years, including an E. coli outbreak. Customers were infected in droves, and the outbreak became a national news story, much to the chain’s embarrassment. Chipotle has been struggling since the outbreak because it has lost a large portion of its customer base. It is developing new food options as well as high-tech ways to make ordering and delivery more convenient, but the fact remains that people are unwilling to risk becoming ill by eating there.
Chipotle
Chili’s
Baby back ribs were once almost synonymous with Chili’s. Its catchy commercials make it difficult to forget that this particular menu item is available at the restaurant. Chili’s, on the other hand, has recently struggled with declining sales, particularly among millennials. The stock of the company dropped by 40% in 2017. Since then, Chili’s has attempted to revamp its menu as well as clean up the appearance of its restaurants, moving away from cluttered decor and toward a more modern look with more open seating.
Chili’s
Jack In The Box
Jack in the Box competes against major players such as McDonald’s and Burger King in an oversaturated market. Even Wendy’s is outselling Jack in the Box in terms of sales. To cut costs, the chain is closing stores, but that may not be enough. It even sold Qdoba to avoid a more serious closure. Jack in the Box will most likely close permanently without a safety net and customers fleeing for other options.
Jack In The Box
Bojangles
If you’ve ever visited North or South Carolina, you’ve probably seen a Bojangles. The restaurant chain is extremely popular in that area, and as a result of its popularity, the company attempted to expand to other states, but with little success. While Bojangles isn’t planning to close all of its locations, it is reducing the number of locations outside of the state. Many of them have closed due to their inability to establish a presence in states other than the Carolinas. This inability to expand further may hurt the company in the long run, but for now, staying in their comfort zone should suffice.
Bojangles
Pollo Tropical
Some restaurants are extremely successful, but only in one area. One of them is Pollo Tropical. It is extremely popular in Florida, but it has yet to gain traction elsewhere. Despite a push into other southern states in recent years, the company decided to close all of those locations except those near Atlanta, GA. While the company appears to be doing well after downsizing, it is difficult to see where it can go from here if it can no longer expand.
Pollo Tropical
Qdoba
Over the years, Qdoba’s biggest issue may have been poor management. While it performs well in the market, poor management decisions and missed opportunities appear to be severely harming the brand. It ran into problems when its costs skyrocketed as a result of legislative changes. However, the company squandered its best chance to attract customers as a viable alternative to Chipotle. Qdoba did nothing to take advantage of the situation as Chipotle faced food shortages after food shortages.
Qdoba
Sonic
It’s unclear what caused Sonic’s demise, but it’s been attributed to a variety of factors, including bad weather and stiff competition. This has led many observers to believe that Sonic is on a downward spiral from which it may never recover. The company is considering several pricing options, but the drive-in experience may not be right for everyone.
Sonic
IHOP
IHOP has had trouble selling as many pancakes, crepes, and omelets as it once did. The well-known breakfast spot is struggling to retain customers as younger customers move toward more cost-effective methods of cooking at home and healthier options. It recently attempted to focus on other options, such as burgers, which drew a lot of criticism for its “IHOB” promotion. Unfortunately, if it can’t find another way to attract customers, this well-known pancake house may have to close soon.
IHOP
Steak N’ Shake
The chain that made a name for itself by grinding prime steak into delectable burgers has certainly lost its luster. In a letter to shareholders in February 2019, the company revealed that it had lost over $2.5 million in the previous fiscal year and that the outlook for 2019 was not much better. The company believes that outdated kitchen equipment and design are slowing services, which is important to many customers’ hearts (and wallets) these days. The letter stated, “We failed customers by not being fast and friendly.” Over 100 locations have temporarily closed as the company seeks to sell the remaining stores to potential buyers.
Steak ‘n Shake
Noodles & Company
Noodles & Company is closing a lot of stores, but that doesn’t necessarily mean the company is failing. The chain is shutting down stores in areas where it isn’t doing well. As a result, removing them could significantly benefit the company by keeping it lean and focused. New store openings are already in the works, but in better locations for the company’s operations. After all, Noodles & Company might not be finished yet.
Noodles & Company
Carrabba’s Italian Grill
Carrabba’s Italian Grill is facing significant difficulties. Carrabba’s is part of the Bloomin Brands family of restaurants, which also includes Outback and Bonefish Grill. Many people blame Carrabba’s sales decline on the restaurant’s poor food quality. Many people are looking for higher-quality, healthier options, which makes Carrabba’s more traditional (and calorie-dense) cooking less appealing. As the company looks for ways to cut costs and attract new customers, some locations have begun to close. Bloomin’ Brands, unfortunately, is dealing with more than just Carrabba’s…
Carraba’s Italian Grill
Ovation Brands
Old Country Buffet, Ryan’s Buffet, Country Buffet, and HomeTown Buffet are among the popular national buffet restaurant chains owned by Ovation Brands. The company declared bankruptcy in 2016, and most of its stores were shuttered with little notice to the employees who worked there. It’s possible that Ovation Brands’ problems are related to American eating habits, which have shifted toward smaller portions of more freshly prepared foods.
Ovation Brands
Outback Steakhouse
Bloomin’ Brands owns Outback Steakhouse. It, like the other chain restaurants on this list, has been influenced by millennial customer trends, such as customers who buy high-quality steaks to cook at home. Bloomin’ Brands investors also point to the company’s performance being hampered by its efforts to keep so many restaurant brands operational. Fleming’s Prime Steakhouse & Wine Bar, Carrabba’s Italian Grill, and Bonefish Grill are among the company’s other restaurants. Its most recent initiatives, such as delivery, are aimed at bettering the company’s performance.
Outback Steakhouse
Joe’s Crab Shack
Restaurants all over the country are experiencing significant declines as a result of the same unnoticed trends that are driving customers away. One of them is Joe’s Crab Shack. Due to a rapid drop in sales, nearly one-third of the company’s stores were forced to close. To make matters worse, the company’s parent has declared bankruptcy. Joe’s Crab Shack was saved at the last minute when the company was purchased by an investor, but more closures are on the way, and things for Joe’s don’t look good.
Joe’s Crab Shack
BJ’s
BJ’s is very popular, particularly among mall-goers, as many of the restaurants are located in or near malls. However, the company’s sales and stock prices have both plummeted. Its stock dropped 25% in the first quarter of 2018, indicating major problems ahead. To make matters worse, the stock of its parent company fell by 47%. BJ’s operations are quickly becoming unsustainable as a result of such losses. With fewer than 200 locations across the country, BJ’s could face a rapid closure if it can’t find a way to increase the company’s value.
BJ’s
Sweet Tomatoes And Soulplantation
In 2016, Sweet Tomatoes and its sister restaurant, Souplantation, filed for bankruptcy. The restaurant chain was sold to a private investment firm in 2017 as a result of its bankruptcy. There are fewer than 100 restaurant locations across the United States since the bankruptcy proceedings began. Lower sales, higher operational costs, and state minimum wage requirements in the states where they have stores are all cited by the restaurant’s leadership team as reasons for the financial problems.
Sweet Tomatoes And Soulplantation
Marie Callender’s
It isn’t just a frozen pie manufacturing company. Marie Callender’s is a well-known restaurant chain that dates back to the 1950s. Homestyle meals, pot pies, and classic American fare were popular at the restaurants. The chain had over 80 different locations in the Western United States during its heyday. It was popular enough for 50 locations to remain open for years. Over 20 of the chain’s stores were recently closed. The holding company filed for Chapter 11 bankruptcy in 2019, potentially putting the chain to rest for good.
Marie Callender’s
Pinkberry
Pinkberry exploded in popularity in the early 2000s as a froyo hotspot for women and teen girls across the country, thanks to celebrity social branding. Hundreds of locations sprang up in malls across the country, contributing to the company’s current problems. Pinkberry has lost its legs due to increased competition and a lack of foot traffic in malls that are closing across the country. Despite Kahala Brands’ purchase in 2015, sales have continued to decline, and franchises are closing faster than the frozen yogurt can melt.
Pinkberry
Perkins
People couldn’t get enough of the top-secret buttermilk recipe when the first Perkins Pancake House opened in Cincinnati in 1958. The sit-down restaurant for families quickly grew to hundreds of locations across the country. However, consumer preferences have shifted, and more health-conscious people are skipping places like Perkins and their high-calorie meals. Though it had been steadily declining for decades, the company still had 242 locations in the United States when it filed for Chapter 11 bankruptcy in 2019. The chain was purchased by Huddle House in September, but the future for Perkins appears to be bleak.
Perkins
Howard Johnson’s
The last lone Howard Johnson’s location in Lake George, New York, is said to be closed for good, but Yelp reviews from the fall of 2019 suggest it’s still alive. For fans of the classic chain and its iconic orange roofs, it’s a sad day. There were once over 1,000 locations across the country, but the chain struggled to stay relevant as consumer preferences for more eclectic fare grew, as did competition across the country.
Howard Johnson’s
Houlihan’s
Houlihan’s Restaurant and Bar, like many other bar-restaurant chains across the country, has hit a brick wall. The chain has struggled to stay relevant with standard American fare and mediocre-at-best drink options. Local craft breweries have gotten a lot of attention from drinkers, and chain bar-restaurants don’t carry those small-batch brews. Locations across the country are closing, and the company is reportedly in debt to the tune of $50 million.
Houlihan’s
Baja Fresh
Baja Fresh debuted in 1990 and quickly established itself as a popular alternative to Taco Bell for its higher-quality burritos, taquitos, and self-serve salsa bar. Wendy’s bought the franchise in 2002 when it had grown to over 300 locations. However, only two years later, things began to deteriorate. Locations are now closing their doors quietly and without fanfare. Will the chain be able to survive until 2020? We’re not so sure.
Baja Fresh
Ground Round
Ground Round, which began as a spinoff of the popular Howard Johnson brand, is known for its large portions and high-calorie meals, which has left the company in financial trouble. When the company declared bankruptcy in 2004, nearly half of its 100+ locations were forced to close. There are now only 17 locations left, and they are all gradually closing.
Ground Round
Bob Evans
Bob Evans is known for its hearty breakfast platters, biscuits, and chicken pot pies, all of which are inspired by Southern cuisine. However, in the mid-2010s, their food didn’t seem to be enough to keep the business afloat, and in 2016, Bob Evans closed many of its underperforming locations. Golden Gate Capital, a private equity firm, added the Bob Evans restaurant chain to its portfolio in 2017. Since then, the restaurant chain has improved its menus and added more fresh-ingredient entrees, bringing things back to normal. Red Lobster and California Pizza Kitchen are also owned by Golden Gate Capital.
Bob Evans