Major restaurant chains closing multiple locations in 2025

Several well-known restaurant chains are closing numerous locations in 2025. Denny’s, Red Robin, and TGI Fridays are among the businesses facing significant shutdowns due to economic pressures. High inflation, labor shortages, and changes in consumer habits are affecting the restaurant industry. Many chains are struggling to adapt to rising operating costs while keeping menu prices reasonable. Retail expert Mitchell Olsen noted that consumers are increasingly hesitant to spend money on dining out. Last year saw many restaurant closures, including popular names like Wendy’s, Outback Steakhouse, and Applebee’s. In 2025, Denny's plans to close 150 locations, following the closure of 88 restaurants in 2024. They aim to improve profitability by streamlining operations. Red Robin is also making cuts, with plans to shut down 70 underperforming locations by 2030. The chain reported a significant loss last year, leading to closures as leases expire. Similarly, TGI Fridays has faced financial challenges and filed for bankruptcy, resulting in the closure of over 100 locations last year. Other chains, including Cracker Barrel and Burger King, have also shut down restaurants in various locations. As diner spending decreases, many restaurants are taking drastic steps to adapt to the changing landscape.