Houston experienced more restaurant closures than any other U.S. city during the first half of 2026, underscoring the challenges facing the food service industry despite continued consumer demand for dining out.
Houston tops the list
According to a new report from RestaurantData.com, 119 restaurants closed in the Houston metropolitan area between January and June 2026, the highest total of any city in the United States and Canada. Texas also led all states and provinces with an estimated 1,039 restaurant closures during the six-month period.
Overall, the report found that 8,171 restaurants closed across North America during the first half of the year, reflecting ongoing pressure on independent operators and national chains alike.
Which restaurants were hit the hardest?
Nationwide, quick-service restaurants accounted for the largest share of closures during the first half of 2026, with an estimated 4,092 locations shutting down, according to RestaurantData.com reports.
Casual and family dining restaurants followed with 2,793 closures. Among cuisine types, sandwich restaurants were hit the hardest with 2,120 closures, followed by bar food (987) and American cuisine (702). The report also identified bakeries and cafés, pizza restaurants, and Mexican and Latin concepts among the categories experiencing significant closures.
Why closures remain elevated
Restaurant operators continue to face a combination of higher food costs, labor shortages, rising rent, insurance expenses, and softer discretionary spending from consumers. Many businesses are also carrying debt accumulated during the pandemic, making it more difficult to remain profitable as operating expenses climb.
While some Texas restaurant closures involve small independent businesses, several national chains have also announced location reductions this year as they focus on improving profitability and investing in stronger-performing markets.
Although Houston led the nation in restaurant closures during the first half of 2026, the city’s restaurant scene remains one of the country’s largest and most diverse. New restaurants continue to open throughout the region, but the latest data illustrates just how competitive—and challenging—the industry has become for operators trying to stay in business.
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