2024 Restaurant Chain Closures: A Comprehensive List
In a year marked by economic challenges and shifting consumer preferences, the restaurant industry faced a significant downturn in 2024. As consumers grappled with rising inflation and sought value in their dining experiences, many restaurant chains made the difficult decision to close underperforming locations in an effort to stay afloat in the ever-evolving landscape of the food service industry.
Wendy’s: Pruning Outdated Restaurants
Leading the pack of closures was iconic fast-food chain Wendy’s, which announced plans to shutter 140 underperforming locations by the end of 2024. These closures came on the heels of roughly 80 shutdowns in the first three quarters of the year. Despite this significant pruning, Wendy’s CEO Kirk Tanner remains optimistic about the company’s future, citing plans for new restaurant openings to offset the closures and maintain a stable restaurant count.
Applebee’s: A Global Decline
Another casualty of the challenging year was Applebee’s, a beloved casual dining chain that saw a global reduction in its unit count by 36 locations compared to the previous year. With declining same-store sales for six consecutive quarters, the brand’s parent company, Dine Brands, announced plans to close between 25 and 35 U.S. locations. This downward trend underscores the broader struggles facing casual dining chains in a rapidly changing market.
Denny’s: Shifting Focus for Future Growth
Similarly, Denny’s faced its own set of challenges in 2024, closing approximately 50 locations with plans to shutter an additional 100 restaurants by the end of 2025. By focusing on improving the performance of its lower-performing locations, Denny’s aims to boost both same-store sales and annual unit volumes in the coming years. Despite these closures, the 24-hour diner chain remains committed to future growth, with plans to open new locations annually post-2025.
TGI Fridays and Red Lobster: Facing Bankruptcy
Joining the ranks of struggling chains was TGI Fridays, which filed for Chapter 11 bankruptcy protection after closing 86 locations throughout the year. Similarly, Red Lobster faced financial challenges, closing over 120 restaurants in 2024 as part of its bankruptcy restructuring. While both chains have weathered significant closures, they remain hopeful for a brighter future with a renewed focus on financial stability and operational efficiency.
In a year marked by unprecedented challenges, the restaurant industry grappled with closures, bankruptcies, and shifting consumer preferences. As these iconic chains navigate the road ahead, the industry as a whole faces a critical moment of transformation and adaptation to survive in an ever-changing market landscape.
