These 5 popular restaurant chains are closing locations across the U.S. in 2026

Several major restaurant chains are under pressure in 2026, as inflation, declining traffic, and shifting consumer habits force companies to cut costs and close locations. Here are five well-known brands facing challenges—and the numbers behind their struggles.

Papa Johns: Hundreds of locations on the chopping block

Papa John’s plans to close 300 stores by the end of 2027. The move comes after a 5%+ drop in same-store sales and targets older, underperforming locations generating under $600,000 annually. 

Wendy’s: 300+ closures tied to declining performance

Wendy’s is expected to close 300 to 350 U.S. locations, or roughly 5–6% of its footprint, after weaker sales and profitability. The company is shifting focus toward stronger-performing restaurants and franchise efficiency. 

Pizza Hut: Sales slump triggers 250-store reduction

Pizza Hut is shutting down about 250 U.S. locations in 2026, roughly 3% of its domestic footprint, following declining sales and increased competition. The closures are part of a broader turnaround strategy under parent company Yum! Brands. 

Red Robin: Traffic declines and long-term downsizing

Red Robin has already closed dozens of locations in recent years and is considering more. A total of up to 70 underperforming stores have the potential to be on the chopping block by 2030. The chain has also reported declining guest traffic and revenue, underscoring ongoing pressure in casual dining. 

Popeyes (franchise operators): Bankruptcy and store closures

Popeyes is seeing strain at the franchise level. One major operator filed for bankruptcy with ~$130 million in debt and is closing at least 17+ locations, while attempting to cut costs and stabilize operations. 

An industry-wide reset

The challenges facing these chains reflect a growing industry trend. Analysts estimate up to 15% of restaurants could close in 2026, as brands cut under-achieving locations and focus on profitability over expansion. 

For consumers, that may mean fewer locations—but more streamlined operations. For workers, however, the ongoing wave of closures and restructuring signals continued uncertainty across the restaurant industry.

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