You’ve probably seen the news headlines of popular restaurant chains closing locations across the country. Learn how to ensure your restaurant survives through economic challenges and shifting consumer behaviors.

Are you looking for answers to questions like what restaurants are closing, and why are so many restaurants closing? Below, we explore all the complex reasons why fast casual and fast food chains are being forced to close locations and, in some cases, even file for bankruptcy. We also provide a list of chain restaurants that are closing locations.

Discover how CashSimple® offers a smarter, more secure solution for managing your restaurant’s cash flow.

What Chain Restaurants Are Closing?

Have you noticed a restaurant chain closing locations in your area? You are not alone. All over the country, casual dining and fast food chains are closing restaurants. The media is filled with headlines like “More Restaurants Closing Permanently” and “Another Restaurant Going Out of Business.” Here is a list of restaurant chains that closed recently or that are planning to close some or all of their locations in the near future.

Restaurant chains closing:

  • Denny’s: Shut down 88 low-performing locations in 2024 and plans to close another 70-90 in 2025
  • Hooters: Closed about 40 locations in 2024 and filed for Chapter 11 bankruptcy in 2025
  • Red Lobster: Filed for bankruptcy and closed 23 locations in 2024
  • Bucca di Bepo: Shut down 18 low-performing locations and filed for bankruptcy in 2024
  • T.G.I. Fridays: Has closed more than half of its locations over the past decade, and also filed for bankruptcy in 2024
  • Applebee’s: Several franchises have filed for bankruptcy, with around 60 locations closed since 2023
  • Smokey Bones: Most locations will close or be converted to Twin Peaks restaurants in 2025
  • Tijuana Flats: 15 closed restaurants and filed for bankruptcy in 2024
  • Outback Steakhouse: In 2024, 41 restaurant locations across 8 different states closed
  • Noodles & Company: 15 to 20 underperforming restaurants closing in 2025

Fast food chains closing:

  • Boston Market: Closed 95% of its locations since 2022, with only 16 remaining
  • Wendy’s: Shut down around 240 underperforming locations in 2024 with plans to open 250-300 new restaurants in better locations
  • Hardee’s: Closed over 40 locations in 2023 and 2024, mainly in Illinois, Missouri, and Tennessee
  • Shake Shack: In 2024, shut down 9 low-performing locations in California, Ohio, and Texas
  • Evos: This regional burger chain in Florida closed all its locations in 2025

This may be the right time to buy a successful restaurant franchise, but make sure to do your research first using our guide. 

Why Are Chain Restaurants Closing?

Now that you know what restaurants are closing, let’s explore why this is happening. It’s common knowledge that running a restaurant is hard, and many restaurants fail due to a lack of capital or market saturation. Others fail when owners and managers do not adequately calculate restaurant labor costs or develop consistent cash-handling procedures. However, what we’ve been seeing these past few years goes beyond normal restaurant challenges.

Why are so many restaurants going out of business?

  • Rising cost of supplies
  • Labor shortages are affecting operations
  • The negative economic impact of the COVID-19 pandemic
  • Shifting consumer habits

According to industry experts, the increased use of delivery apps has remained prominent even after the pandemic ended. With people dining out less, when they do choose to dine out, they usually prefer a unique experience, not a chain. When consumers are looking for a casual option when dining out, they usually prefer faster and cheaper chains that offer healthy options, such as Chipotle and Sweetgreen.

How ICL’s Cash Management Solution Helps Restaurant Chains Thrive

Integrated Cash Logistics (ICL) provides restaurant chains with smart, secure cash management solutions that improve operational efficiency to help avoid being one of the restaurants that go out of business. Solutions like CashSimple® help streamline cash handling and support long-term growth even in a challenging industry landscape. We buy the restaurant’s cash from our smart safe and wire it to the bank of choice, so you don’t have to deal with the hassles of provisional credit and trips to make deposits.

Schedule a free demo with ICL today to see what makes our solution different and the advantages we deliver to help restaurants not just survive, but thrive.