7 Beloved Restaurant Chains Quietly Closing Locations This Year
Going out to eat is not cheap, but some restaurants are struggling more than others. Customers are choosing to cook at home or go elsewhere to find the best bang for their buck, which means once established spots are facing dropping profits and the prospect of closing down locations entirely. These chains have been dealing with slow decline for a while, and in many cases the locations being closed down are underperforming. So which restaurants are quietly downsizing? Here are seven restaurant chains closing locations this year.
Pizza Hut
Pizza Hut is closing 250 locations and counting in 2026 in an effort to combat declining sales and close down underperforming stores. “We’ve made the difficult decision, together with certain franchisees, to close a limited number of locations in the U.S.,” the chain says. “The good news is that more than 6,700 Pizza Hut locations are open nationwide and serving you the delicious Pizza Hut pizza you know and love!”
Wendy’s
Wendy’s is expected to close up to 350 units in 2026. The company just reported a 7% drop in same-store sales in their second quarter, with traffic down by 12.5% and 245 closures so far in 2026. “Our quality differentiation has eroded, our value proposition has weakened, and we have not consistently delivered the experience customers expect from Wendy’s,” said CEO Bob Wright.
Papa John’s
Papa John’s is expected to close 300 locations by the end of 2027 and 200 in 2026 alone. “We believe these closures will further strengthen the system, increasing AUVs by at least 3% and improve franchisee health by allowing franchisees to reallocate resources towards operational excellence in their remaining restaurants and open units in priority markets,” Papa Johns CFO Ravi Thanawala previously said.
Bahama Breeze
Darden Restaurants permanently shut down every Bahama Breeze location, a chain which first launched over 30 years ago. Some locations are being converted to other Darden properties, but the brand itself will not continue.
Noodles & Company
Noodles & Company plans to shut down 30-25 company-owned restaurants in 2026 as part of a turnaround plan to improve sales. “We have and will continue to close restaurants that predominantly are in proximity to higher performing nearby restaurants,” said Noodles & Company CEO Joe Christina.
Jack In the Box
Jack In the Box said last year it would shutter 150–200 underperforming locations by 2026. “2026 is about laying the foundation for sustainable long-term growth, which requires doing a lot of hard work right now. We’re confident that the actions we’re taking will lead to a stronger, more stable platform from which to grow. We are beginning to see early results that reinforce that we are on the right path,” said CEO Lance Tucker.
Red Lobster
Red Lobster closed down its oldest continuously operating location in May of this year, two years after filing for bankruptcy. “There’s a lot of positive signs, but we inherited a very damaged brand, so there’s still work to do to repair all of that,” CEO Damola Adamolekun told the Wall Street Journal. The chain also closed down its flagship Times Square location in June.