2025 restaurant closures: Starbucks, Wendy’s shutter areas

Because the restaurant trade endured one other tough 12 months, many chains opted to shut underperforming areas as they attempt to flip round their companies.

Inflation-weary customers have pulled again their restaurant spending, selecting to eat at residence or chasing offers after they exit for a meal. Whereas some eating places have received over reluctant diners, the trade has largely struggled with the gross sales droop. Visitors to eating places open at the least a 12 months fell each month in 2025, excluding solely July, in accordance with Black Field Intelligence.

In years previous, restaurant closures have been extra concentrated throughout casual-dining chains, which misplaced prospects to fast-casual rivals like Chipotle. However this 12 months, chains throughout the trade introduced plans to shutter at the least a whole bunch of areas.

In such a tricky surroundings, some restaurant firms even filed for chapter safety. Hooters, Pinstripes and On the Border had been a few of the notable names that landed in chapter courtroom this 12 months.

Listed below are the chains that introduced closures in 2025:

In September, the espresso big introduced a $1 billion restructuring plan that included closing roughly 500 of its North American areas. The closures even prolonged to shuttering its upscale Reserve Roastery cafe in Seattle, the corporate’s hometown.

Starbucks’ announcement adopted CEO Brian Niccol’s one-year anniversary on the helm of the corporate. Below his management, Starbucks is making an attempt to reverse a gross sales droop within the U.S., its largest market.

Executives plan to share extra particulars in regards to the turnaround on the firm’s upcoming investor day in late January in New York.

In November, Wendy’s introduced that it might endure a strategic assessment of its restaurant footprint and start closing underperforming areas that quarter. Whereas the corporate didn’t announce a selected variety of closures, interim CEO and CFO Ken Cook dinner informed analysts that the corporate might shutter a “mid-single digit proportion” of its U.S. eating places shuttering, which might imply a whole bunch of the burger chain’s areas.

The closures are one section of Wendy’s “Challenge Contemporary” turnaround plan. The corporate has reported same-store gross sales declines at the same time as rivals McDonald’s and Burger King see greater demand for his or her Huge Macs and Whoppers.

In 2024, Wendy’s shuttered about 140 areas.

In February, Denny’s mentioned it deliberate to shut between 70 and 90 eating places in 2025. In current months, the diner chain’s gross sales sunk as prospects opted to go to cheaper fast-food eating places for breakfast. The shift in conduct led the corporate to shutter underperforming areas and try to enhance the remainder of its restaurant footprint.

In November, the chain introduced it had offered itself for $620 million to Yadav Enterprises, TriArtisan Capital Advisors and Treville Capital Group. The deal is anticipated to shut within the first quarter of 2026, pending regulatory approval.

In April, Jack within the Field mentioned it might shut between 150 and 200 eating places as a part of its “Jack on Monitor” technique to enhance its monetary efficiency. By the tip of its fiscal 2025 on Sept. 28, the chain had completely shuttered 86 eating places.

In Might, Bahama Breeze dad or mum firm Darden Eating places closed 15 of the chain’s areas, which represents roughly a 3rd of its general footprint.

Following the closures, executives determined that the Caribbean-inspired chain was not a strategic precedence for Darden, so the corporate is exploring strategic options for the model. Choices embody promoting the chain outright or changing its eating places into different Darden manufacturers, like Olive Backyard. Darden expects to decide on Bahama Breeze by the tip of its fiscal 2026, which concludes in Might.

Dozens of Hardee’s areas will shut by finish of the 12 months after the franchisor sued ARC Burger, one in every of its largest franchisees. Hardee’s alleges that the operator fell behind on funds like royalties, lease and taxes.

ARC, which is owned by personal fairness agency Excessive Bluff Capital Companions, operated 77 Hardee’s eating places earlier than the authorized battle started. Its footprint stretched throughout eight states, together with Alabama, Florida, Georgia, Illinois, Missouri, Montana, South Carolina and Wyoming, in accordance with authorized filings.

Within the first three quarters of 2025, Papa John’s shuttered 173 eating places worldwide, in accordance with firm filings. A lot of the closures affected worldwide areas, though 62 of the pizza chain’s U.S. areas additionally closed.

Regardless of the closures, Papa John’s nonetheless had almost 6,000 eating places in operation on the finish of September.

On the finish of October, Noodles & Co. had closed 29 company-owned eating places this 12 months, and executives mentioned that they deliberate to shutter one other two to 5 underperforming areas by the tip of 2025.

In 2024, the fast-casual chain closed 20 areas.

By the tip of 2026, Noodles & Co. is planning to shut one other 12 to 17 shops, because it goals to enhance the corporate’s monetary efficiency and enhance gross sales on the chain’s close by areas.

In October, restaurant firm Bloomin’ Manufacturers closed 21 areas throughout the corporate. The closures hit Outback Steakhouse, the gem of its portfolio, in addition to Bonefish Grill and Carrabba’s Italian Grill.

Bloomin’ has recognized almost two dozen different eating places that won’t renew their leases after they expire over the subsequent 4 years, executives mentioned in November when sharing the corporate’s quarterly earnings. On the identical time, the corporate introduced a $75 million turnaround plan to enhance Bloomin’ gross sales and its general monetary well being.