It’s not a good time to be a fan of your favorite chain restaurant.
Some of the most recognizable names in American casual dining are vanishing from street corners and highway exits as a wave of permanent closures sweeps the country. Over 135 locations have already shut down this year, and more are on the chopping block as the industry battles rising costs, staffing shortages, and shifting consumer habits.
One of the biggest shakeups came when Hooters filed for bankruptcy in March to deal with a $376 million debt. As part of its restructure, the brand closed 30 restaurants across multiple states. A spokesperson said the decision wasn’t easy but necessary to focus on a pure franchise model moving forward. Hooters says it’s here to stay, but the brand’s financial troubles are far from over.
Then there’s Red Robin, which confirmed it’s closing 10 to 15 restaurants this year as part of a longer-term plan to shut down about 70 locations by 2030. CEO G.J. Hart explained the closures will help reduce debt and redirect funds into stronger-performing restaurants. Even as locations vanish, Red Robin still operates around 500 restaurants across the US and Canada and is betting on new menu additions to draw back diners.
But the biggest blow might be coming from Denny’s, which plans to close up to 90 more restaurants by the end of the year. That brings the total number of shutdowns to around 180 locations since 2024. CFO Robert Verostek said many of these stores have been open for 30 years or more and just aren’t performing well anymore. He added that the closures would help improve cash flow and allow the brand to reinvest in locations that still have foot traffic. And despite the mass exit, the company is planning to open up to 40 new restaurants and revamp about 265 others under a broad “portfolio optimization” initiative.
And these three aren’t alone. A bunch of other household names are also getting trimmed. Red Lobster plans to close more than 100 stores in 2025 under new CEO Damola Adamolekun. TGI Friday’s shut down 30 locations in April after a bankruptcy filing. Even Applebee’s expects to lose 20 to 35 restaurants this year, although it hopes to soften the blow by teaming up with IHOP for new dual-branded spots. Noodles & Company, another big name in fast casual, will shut down 17 to 21 locations this year after a tough 2024.
Here’s a quick look at how bad it’s gotten:
| Restaurant Chain | Locations Closing in 2025 | Reason |
|---|---|---|
| Denny’s | Up to 90 (180 since 2024) | Poor performance, brand optimization |
| Red Robin | 10–15 (70 by 2030) | Lease expirations, financial restructuring |
| Hooters | 30+ | Bankruptcy, debt restructuring |
| Red Lobster | 100+ | Leadership change, declining sales |
| TGI Friday’s | 30 in April | Bankruptcy-related closures |
| Applebee’s | 20–35 | Strategic downsizing, IHOP merger strategy |
| Noodles & Company | 17–21 | Financial losses from prior year |
It’s clear that the mid-tier restaurant sector is taking a serious hit. While fast food giants and luxury dining spots manage to hang on, the casual sit-down brands are getting squeezed out. From high wages and inflation to shrinking foot traffic and pandemic aftershocks, it’s a perfect storm, and diners are feeling it too.
Even loyal customers are taking the news hard. From Reddit threads to Facebook memories, fans have been sharing stories of first dates, birthday dinners, and family nights out, now tied to a location that no longer exists. These restaurants weren’t just places to eat; for many, they were part of growing up.
As of now, there’s no real end in sight to the closures. More could follow if inflation continues to climb or if consumers keep cutting back on eating out. The only certainty is that America’s dining landscape is changing fast, and not everyone is going to make it through.
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