13 Restaurant Chains That Shed Many Locations in 2025

The Struggles of Iconic Restaurant Chains in 2025

Even some of the most iconic restaurant chains have faced significant challenges over the years. Operating on a national or global scale is no easy task, and many have had to make tough decisions to stay afloat. Red Lobster, for example, experienced a series of closures in 2024 that forced it to rethink its business model. This led to a new CEO who helped the seafood chain stage a comeback. However, Red Lobster's success story is not common among all chain restaurants.

In 2025, numerous chain restaurants had to close a significant number of locations. While some chains might have lost just a few, others saw hundreds of closures. Each of these businesses faced their own unique set of circumstances, but the overall trend was clear: the restaurant industry was experiencing a difficult year.

Denny's: A Decline in Locations

Denny's, known for its 24-hour dining rooms and affordable American staples, faced a significant reduction in locations in 2025. Between 70 and 90 restaurants were shuttered, continuing a trend that started in 2024 when 88 locations were closed. According to the company's executive vice president, many of these closures were due to the age of the restaurants and the lack of demand in certain areas. This move was part of a larger plan to close 150 locations by the end of 2025.

Domino's: A Regional Challenge

Despite being an industry leader in pizza delivery, Domino's faced a notable number of closures in 2025. Over 200 locations were shut down, primarily due to issues with a specific franchisee, Domino's Pizza Enterprises. Out of these, 172 were located in Japan, while the remaining 33 were in other regions. These closures were attributed to the post-pandemic drop in demand for food delivery. Although the closures were localized, they highlighted the challenges even well-established chains can face.

Dairy Queen: A Shift in Focus

Dairy Queen, known for its frozen desserts, struggled with a lack of focus on its core offerings. In 2025, the chain closed more than 30 locations in Texas. These closures were linked to disagreements over remodeling and franchise rights. Financial difficulties were likely a contributing factor, as the closures were concentrated in one market.

Del Taco: Struggles Under Parent Company Ownership

Del Taco, acquired by Jack in the Box in 2021, faced several closures in 2025. In Colorado, nearly all locations closed temporarily, with only one remaining open. In Atlanta, seven locations closed after a franchisee filed for bankruptcy. These closures were attributed to financial struggles, and the parent company, Jack in the Box, also faced its own challenges, leading to plans to sell Del Taco.

Jack in the Box: A Major Restructuring

Jack in the Box, the parent company of Del Taco, experienced a decline in sales and stock price in 2025. As a result, the company announced plans to close around 10% of its locations. This move was intended to stabilize the business, but the future of both Jack in the Box and Del Taco remains uncertain.

TGI Fridays: A Decline in Popularity

TGI Fridays faced a steep decline in 2025, with over 100 locations closing since 2024. By mid-2025, the chain had reduced its footprint to around 85 stores. Despite this, the company announced plans to open 50 new international locations in Peru and Japan, hoping to revitalize its brand.

Red Robin: Strategic Closures

Red Robin, like other casual dining chains, faced declining revenue and losses in 2024. In 2025, the company planned to close between 10 and 15 locations, with a long-term goal of closing up to 70 over five years. While this strategy may help the chain recover, it also highlights the challenges of maintaining profitability in a competitive market.

Outback Steakhouse: Ongoing Closures

Outback Steakhouse, known for its lower-priced steaks, continued to face closures in 2025. Bloomin' Brands Inc., the parent company, announced plans to close 41 restaurants across its portfolio, including several Outback locations. The exact number of closures in 2025 is unclear, but the trend of reductions persisted.

Hooters: Bankruptcy and Revitalization

Hooters announced a major shift in its business model in 2025, aiming for a more family-friendly approach. However, the chain filed for bankruptcy and closed over 30 locations. These closures continued a trend that began in 2024, indicating ongoing struggles despite the proposed changes.

On the Border Mexican Grill & Cantina: Bankruptcy and Closures

On the Border, a Tex-Mex chain, faced severe financial difficulties in 2025. The company filed for bankruptcy and announced plans to close over 70 locations. These closures were driven by economic factors, including a shift in consumer preferences towards dining in rather than eating out.

Noodles & Company: Downsizing and Revival

Noodles & Company, known for its variety of noodle dishes, faced declining sales in 2025. The company announced plans to close between 28 and 32 locations. However, it also opened one new store, signaling potential for a revival. The company also implemented a new CEO and menu revamp, suggesting a possible turnaround.

Bahama Breeze: Potential Closure

Bahama Breeze, part of Darden Restaurants, faced declining business in 2025. Darden considered shutting down the brand entirely, with 15 locations already closed. The company explored selling the brand but ultimately decided to convert remaining locations into other Darden restaurants.

Smokey Bones: Conversion to Twin Peaks

Smokey Bones, acquired by FAT Brands in 2023, faced a significant downturn in 2025. The company planned to convert 30 of its remaining locations into Twin Peaks restaurants, marking a major shift in its business strategy. This conversion process is expected to continue into 2026, leaving Smokey Bones as a shadow of its former self.