At a time when food delivery apps dominate smartphones and ghost kitchens operate behind unmarked doors, the familiar glow of chain restaurant signs is dimming across America’s highways and strip malls.
The restaurant scene of 2024 and 2025 reveals a story not just of changing tastes, but of financial reckonings long postponed. As iconic brands that defined casual dining for generations now face existential threats, their struggles reveal deeper truths about American consumption patterns, post-pandemic economics, and the fragility of nostalgia as a business model.
The following restaurant chains, once seemingly permanent fixtures in American culture, are now engaged in strategic retreats that leave communities wondering: Is this goodbye, or merely a painful reinvention?
TGI Fridays
Known for its classic casual dining atmosphere and striped decor, TGI Fridays has been rapidly shrinking its footprint. The chain has been forced to scale back dramatically due to declining sales (an impact of the pandemic) and increasing debt. The 59-year-old company filed for Chapter 11 bankruptcy in November 2024, after closing about 100 locations earlier in the year.
In January 2024 alone, Fridays shuttered 36 “underperforming” restaurants across 12 states, including Massachusetts and New Jersey. In early 2025, following the bankruptcy filing, the chain closed an additional 30 locations nationwide. The company has since shifted to a fully franchised model, with about 84 U.S. franchise-owned locations remaining open as it restructures its operations.
Denny’s
America’s Diner isn’t immune to the pressures facing casual dining and 24/7 establishments. In October 2024, Denny’s revealed plans to close 150 restaurants by the end of 2025, with the timeline split between 50 closures in 2024 and 100 closures in 2025.
However, the actual closure numbers exceeded this original timeline. The company ended up closing 88 locations in 2024 (38 more than the planned 50) and now expects to close between 70 and 90 restaurants in 2025. To partially offset these closures, Denny’s plans to open 20 to 40 new locations, but the net result will still be a significantly reduced footprint for the breakfast chain.
Ruby Tuesday
Once a mall dining staple, Ruby Tuesday has steadily disappeared from the American restaurant landscape. After filing for Chapter 11 bankruptcy in 2020, the company permanently closed 185 restaurants. The closures have continued in the years since, with locations quietly shuttering across the country.
In one specific example, Ruby Tuesday closed its last restaurant in Lancaster County, Pennsylvania. The chain, which once had over 945 locations, has now been reduced to a fraction of its former size (about 206 locations remain in the U.S.), with many places having closed in 2024 and about 25 more closures planned for this year.
Red Lobster
The seafood chain known for its Cheddar Bay Biscuits filed for Chapter 11 bankruptcy protection in May 2024, after accumulating more than $1 billion in debt with less than $30 million in cash on hand. The filing came after a disastrous unlimited shrimp promotion that reportedly cost the company millions.
While Red Lobster emerged from bankruptcy in September 2024 after being acquired by Fortress Investment Group, the restructuring resulted in numerous restaurant closures. The company now operates approximately 513 to 530 locations across 44 U.S. states, down from its previous footprint of over 650. Industry analysts called Red Lobster’s collapse “the most spectacular restaurant collapse of 2024.”
Outback Steakhouse
The popular Australian-themed steakhouse known for its Bloomin’ Onion has been closing numerous locations since last year. In February 2024, Bloomin’ Brands, Outback’s parent company, announced the closure of 41 “underperforming locations” across its portfolio, most of which were Outback Steakhouse restaurants.
These closures have affected more than eight states, including Illinois, Iowa, Michigan, Ohio, Florida, New Hampshire, and Hawaii. The latter two states lost all their Outback locations entirely. The company still operates hundreds of Outbacks, and these strategic closures aim to shed lower-performing sites to improve overall profitability. It signals a trimming of the herd rather than a total retreat, which means the boomerang might be gone from certain towns.
Hooters
The wing-focused restaurant, known for its waitresses in signature orange shorts, has been quietly closing dozens of locations. In mid-2024, approximately 40 Hooters restaurants closed across the United States. Texas and Florida—states with the most Hooters locations—were hit particularly hard, with at least 15 restaurants closing in Texas and 4 in Florida. Other states affected include Illinois, Kentucky, and Ohio.
Additional closures followed in March 2025, with approximately 30 to 40 more locations shuttered nationwide, including three in Texas and about six in Florida. In February 2025, reports emerged that Hooters was preparing to file for bankruptcy after shuttering these locations, with the company owing approximately $376 million. It officially filed for bankruptcy in March 2025.
Burger King
The “Home of the Whopper” has significantly reduced its restaurant count. By the end of 2023, Burger King had closed approximately 400 nationwide locations, leaving fewer than 7,000 restaurants across the U.S. The trend continued into 2024 and 2025, with more closures impacting locations in Florida, Georgia, Nebraska, and New York.
In April 2025, a major Burger King franchisee with 57 restaurants in Florida and Georgia filed for Chapter 11 bankruptcy, indicating that more locations could be at risk. While the chain itself isn’t going out of business, its footprint is shrinking considerably as franchisees struggle with profitability.
Applebee’s
The neighborhood bar and grill chain announced plans to close 25 to 35 locations in 2024, following the 33 restaurants it shuttered in 2023, citing underperformance. Applebee’s parent company, Dine Brands Global, revealed the closures during an earnings call in February 2024.
The situation has been particularly difficult in certain markets. For example, eight Applebee’s locations in the Kansas City metro area, spanning Kansas and Missouri, closed after a franchisee filed for bankruptcy, leaving just two restaurants in that market. These closures reflect the broader challenges facing casual dining chains as consumers cut back on eating out.
Red Robin
The gourmet burger chain announced in early 2025 that it’s considering the potential closure of approximately 70 underperforming restaurants over the next five years as leases expire. For 2025 alone, Red Robin projected that 15 locations would be shut down, with three expected to close in the first quarter.
The company closed one location during the fourth quarter of 2024 when its lease expired. These closures are part of Red Robin’s strategy to improve its financial performance and repay debt as the chain struggles to compete in the increasingly crowded burger market.
Boston Market
Perhaps the most dramatic restaurant collapse in recent years, Boston Market has seen its location count plummet from over 1,200 at its peak to about 74 restaurants as of mid-2025. The rotisserie chicken chain closed approximately 300 locations in 2023 alone, and about 16 by the end of 2024, before a modest rebound through franchising.
The rapid pace of closures has been attributed to landlords evicting the chain over unpaid rent and utility bills, and state officials shutting down locations for tax issues. Industry experts suggest Boston Market may be in its final days as a national chain.
IHOP
While not disappearing as rapidly as other chains, the International House of Pancakes has been quietly closing locations. According to reports, IHOP closed approximately 20 to 30 locations in 2024, with more closures expected.
Although some closures were related to a franchise bankruptcy filing from Exton Operating Group, the company has clarified that these specific closures don’t impact IHOP at the national level. However, the trend of shrinking locations continues as the breakfast chain faces increasing competition from other morning meal options.
Wendy’s
The square-patty burger chain has been shuttering numerous locations despite being one of America’s largest fast-food companies. In 2024, Wendy’s announced plans to close 140 poor-performing restaurants in the fourth quarter alone.
This followed a multi-year trend of closures across the country as the chain works to eliminate underperforming locations. While Wendy’s continues to open new restaurants in more promising locations, the net result has been a significant reshuffling of its national footprint, with some communities losing their local Wendy’s restaurants.
On the Border
For decades, On the Border was a go-to for sizzling fajitas and group celebrations, but the casual dining staple has hit a financial wall. The Tex-Mex chain filed for Chapter 11 bankruptcy protection in March 2025, a move that came after it had already shuttered 40 underperforming restaurants.
Citing a brutal mix of economic pressures, labor shortages, and declining foot traffic, the company is now navigating more than $25 million in debt. While 60 corporate-owned locations remain open during restructuring, the bankruptcy filing signals a profound crisis for a brand that once defined festive Tex-Mex dining for millions.
Bahama Breeze
The promise of a Caribbean getaway, complete with jerk chicken and tropical cocktails, defined Bahama Breeze for years. That island-themed escape is now facing a corporate verdict. Parent company Darden Restaurants has officially ceased all new investment in the chain, a decision that followed the abrupt closure of 15 “underperforming” locations in May 2025.
CEO Rick Cardenas has put the brand up for sale, stating the remaining 28 restaurants are no longer a “strategic priority.” If a buyer isn’t found, the Bahama Breeze name could vanish entirely, with its locations potentially converted into other Darden concepts such as Olive Garden or LongHorn Steakhouse.
Bravo Italian Kitchen
For fans of Bravo Italian Kitchen, this story may sound painfully familiar. The parent company of the casual Italian dining chain filed for Chapter 11 bankruptcy in August 2025—its second such filing in just five years.
Citing the crushing weight of inflation and soaring interest rates, the company has already shut down seven restaurants, including a 15-year-old staple in Naples, Florida. This recurring financial collapse suggests that Bravo’s model is fundamentally struggling to survive in the post-pandemic economy, placing the future of its remaining locations in serious doubt.
Noodles & Company
As a fast-casual pioneer, Noodles & Company aimed to offer a globally inspired alternative to burgers and sandwiches. Now, the brand is in a fight for relevance, announcing a sweeping plan to shutter 49 underperforming restaurants by the end of 2026.
The decision comes as the chain grapples with a significant 2.5% decline in customer traffic and an admission from leadership of an “unexpected drop in guest value perception”—a clear sign its prices are no longer connecting with inflation-weary diners. While not in bankruptcy, this massive retrenchment marks a critical and uncertain turning point for the pasta chain.
Salad and Go
Built on a promise of healthy, affordable fast food served through a drive-thru, Salad and Go expanded with remarkable speed. That aggressive growth came to an abrupt halt in September 2025. In a major strategic retrenchment, the company announced the sudden closure of 41 locations across Texas and Oklahoma, including all in Houston, Austin, and San Antonio, while retaining a few in Dallas.
Under new leadership, the company stated the move was necessary to concentrate efforts on its core markets. For a brand once seen as the future of quick-service dining, this sudden disappearance from entire regions is a stark reminder of how challenging it is to scale a new concept in the current economic climate.