If you’ve gone to a chain restaurant recently and noticed that it’s…a little empty…you’re not alone.
There have been a LOT of changes to the restaurant industry over the last five years.
Mostly ones that have made it tougher and tougher for long-beloved brands to compete.
And inevitably, that leads to closures.
We’ll get to four restaurants that threw in the towel and announced massive closures here in a moment, but first I think it’s helpful to talk about how we got here.
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Of course, we all know that buying patterns have changed since the 2020 pandemic. There’s a lot more takeout and a lot less eating out.
But there are also a number of recent factors that have made things quite a bit tougher too.
Like – the fact that interest rates are so high. (Mortgages are nearly 7%!)
“How does that impact restaurants?” you might ask. “People still have to eat, right?”
Well…
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That’s all true – but the specific issue actually is that many of these chain restaurants are laboring under debt loads they took out years ago when times were better…
And as interest rates increase, so often do their interest payments. (It’s often floating-rate debt.)
Especially if foot traffic is down…
Suddenly it gets a lot harder to make those interest payments.
And thus begins the downward spiral…
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There’s also another issue that I think is specifically plaguing chain restaurants…
Now anyone can open up DoorDash or UberEats and find dozens of alternatives.
When you think “I’d like seafood” you don’t have to go to Captain D’s or Red Lobster…or for a steak, it doesn’t “have” to be Outback or Chili’s…and for a burger, it doesn’t “need” to be Red Robin or…well…just about every chain restaurant.
Suddenly you’ve got a lot more options, right at your fingertips.
And with pictures and reviews…it feels like less of a “risk” trying something new – especially if you’re getting it delivered!
Plus, let’s face it…
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People are increasingly opting for healthier options.
I’m not saying everyone’s eating a salad for takeout – lord knows I’m not – but more that maybe not as many people want the double-fried whatever topped with butter, you know?
Just a few percentage points change in that sort of thing can be the final nail in the coffin of a restaurant that was barely hanging on given all the other trends.
And so it’s not all that shocking that we’re seeing these four restaurants tap out:
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Denny’s has shared plans to close over 150 restaurants by the end of 2025 – starting with 88 in 2024, and another 70-90 by the end of this year.
America’s diner just hasn’t been able to maintain relevance lately.
Which is incredibly disappointing – their slams have always been some of my favorites, for the nostalgia alone!
It’s solid, consistent, filling fare – which tastes good.
But I guess that’s just not good enough for people these days.
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Hooters abruptly closed 30 restaurants last week after a bankruptcy filing.
Like many casual restaurants, it’s been struggling under a mountain of debt and declining food sales.
I personally think they need to bring back unlimited wings. Those were a huge hit.
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This one’s a heartbreaker, because I’ve always loved Red Robin’s burgers and shakes.
But just last week, Red Robin announced that it’s likely going to close 15 stores in 2025 on the way to as much as a 70-restaurant reduction in the next few years.
So disappointing – I hope my local Red Robin stays open so I can keep indulging my craving for their Whiskey River bbq burger!
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Noodles & Company recently announced that it’s expecting to close between 17 and 21 total restaurants in 2025.
What’s interesting about their decision is – it’s despite overall numbers looking pretty good.
Same-store sales were up 4.4% overall, with foot traffic up 1.8%.
But of course – and I think this is important to highlight – any average number means there are stores above and below that line. Maybe there’s a small cluster of stores that are WAY below that, and they’re the ones being targeted for potential closure.
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I’ve actually never been a huge Noodles & Co. fan. While the other closures I’ve highlighted here are truly disappointing…I’m just not all that torn up about Noodles closing a few stores.
After all, pasta is just about the easiest dish to make at home, you know?
But that brings us to what might be the toughest loss of them all:
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So as you can see – hundreds of restaurants are closing, and probably more to come from other corners of the United States.
It’s a sad state of affairs, for sure – and if your community is impacted by these, I’m sorry to hear it. (I’m losing some, too, for what it’s worth.)
What do you think these restaurants should be doing to try and turn the ship around?
Let us know in the comments!
And make sure that you…
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Follow The Coconut Mama
• For fun lists, healthy living tips, and bar conversation topics, make sure to follow The Coconut Mama. Click here to access The Coconut Mama’s profile page and be sure to hit the Follow button here or at the top of this article!
• Have feedback? Add a comment below!
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