The restaurant industry continues to face significant challenges in 2026, with several major chains closing locations as they work to improve profitability and streamline operations. While closures have occurred nationwide, Florida and California have experienced some of the most notable restaurant losses.
Florida hit by Red Lobster, Hooters, and Popeyes closures
Florida has been at the center of several high-profile restaurant shutdowns. In May 2026, Red Lobster permanently closed its longtime Tallahassee restaurant after more than five decades in business, marking another chapter in the chain’s post-bankruptcy restructuring.
The state was also affected by Hooters’ ongoing restructuring efforts. In 2025, the company closed several Florida restaurants, including locations in Jacksonville, Sanford, Melbourne and Gainesville, as it worked through financial challenges and a Chapter 11 bankruptcy filing.
Meanwhile, a major Popeyes franchise operator filed for bankruptcy protection in late 2025, resulting in the closure of numerous restaurants across Florida and Georgia. The closures affected communities throughout the state and highlighted the financial pressures facing franchise operators.
California sees casual dining and fast-food reductions
California has also endured a steady stream of restaurant closures. Most recently, an Applebee’s in Calexico announced plans to permanently close on June 23, 2026, ending more than 20 years of service in the community.
The state has also been impacted by Pizza Hut reductions. In 2024, franchise operator Southern California Pizza Company closed more than a dozen delivery-focused locations after changes in operating costs and business conditions.
Red Lobster’s bankruptcy restructuring similarly affected California, with multiple restaurants among the locations shuttered during the company’s nationwide closure plan.
More changes may be ahead
Industry experts expect additional restaurant closures and relocations throughout 2026 as chains continue evaluating underperforming locations. At the same time, many brands are investing in remodels, technology upgrades and new restaurant concepts in an effort to adapt to changing consumer preferences and economic conditions.
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