Around 37% of Americans say they’re eating out less than they did a year ago. These changing consumer trends, as well as other factors, are driving well-known chains like Wendy’s and Denny’s to close a significant amount of their locations nationwide.
Wendy’s announces nationwide closures amid slowing sales
Wendy’s, the iconic fast-food hamburger chain, confirmed in late 2025 that it would close a significant portion of its U.S. footprint as part of a strategy dubbed “Project Fresh.” The company plans to shutter a “mid-single-digit percentage” reduction of its roughly 6,000 U.S. restaurants. Based on that amount, analysts estimate that anywhere from 240–360 Wendy’s locations will close nationwide through late 2025 and into 2026, with many observers centering on a figure of around 300 locations.
Executives explained that the closures are focused on underperforming and financially weaker units that have struggled to keep up with changing consumer habits and heightened competition in fast food and casual dining.
Rising food costs, softer same-store sales, and shifting customer traffic patterns were highlighted in earnings calls as key drivers behind the decision. Wendy’s leaders said redirecting resources to stronger, more profitable restaurants and modernizing technology could help stabilize performance.
Denny’s shutters ~150 restaurants
Denny’s, the classic American diner chain known for its 24/7 service, also contracted sharply in 2025. The company is executing a closure plan that will shutter more than 150 restaurants nationwide by the end of the year as it grapples with declining traffic and profitability.
Half of these closures occurred in 2024, with the remainder expected to be closed by this year’s end. Many of the restaurants selected for closure are older units with expiring leases, require costly renovations, or sit in trade areas with depressed customer demand.
Bloomin’ Brands executes targeted cutbacks across its portfolio
Casual dining giant Bloomin’ Brands, owner of Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse & Wine Bar, announced a series of closures this year as part of a broader turnaround strategy. During 2025, the company completed the closure of 21 U.S. restaurants and revealed that an additional 22 locations will not have their leases renewed over the next few years.
Bloomin’ Brands executives point to the need to optimize costs, update restaurant concepts, and strengthen long-term profitability as reasons for these closures, which are occurring alongside significant investment in menu quality and restaurant remodels.
One of these major investments is a $75 million plan for “returning Outback to its roots as an approachable, affordable source of high-quality steaks.”
Given the economic ups and downs in recent years, as well as rising food costs and inflation, time will tell how the restaurant industry performs in 2026.
Links on this page may be affiliate links, for which the site earns a small commission, but the price for you is the same
Leave a Comment