11 Restaurant Chains Struggling in 2025

It's been a particularly brutal five years for the restaurant industry. Starting with the COVID-19 pandemic, when closures and restrictions forced many into bankruptcy, leading up to this year with inflationary issues and President Donald Trump's tariffs shifting spending habits away from dining out and increasing the prices of everything from food to packaging and restaurant equipment. Here are 11 chains, including fast food, fast casual, and more traditional sit-down restaurants, struggling in 2025.

eeges

Southern Arizona-based eeges, founded in 1971, shuttered five restaurants and filed for Ch. 11 bankruptcy in December 2024. The sub and slushie chain still operates 20 other locations in the Tuscon and Phoenix areas. However, customers claim that everything went downhill after selling the company to 39 North Capital, an investment firm. "It's been a staple of Tucson for years," eegee's fan Lance Dahlstrom told 13 News. "Ever since they sold it, the original owner sold it, it's gotten more expensive and less quality." In October, a lawsuit was filed in Maricopa County claiming the company owed restaurant supplier Sysco over $1.2 million. Bankruptcy documents also show that eegee's owes $725,000 to another vendor Merit, $410,000 to Ramp Flex, and $100,000 to Punchh, Inc.

Sticky Fingers Filed for Chapter 11 Protection

Sticky Fingers, a BBQ chain which operates four locations in Greenville, North Charleston, and Summerville, S.C., and Chattanooga, Tenn., filed for Chapter 11 protection earlier this year for two locations only.  "Inconsistent leadership led to a decline in food quality and service and eventually a decline in sales. The company began closing restaurants. In 2019, under new leadership, Sticky Fingers started making great strides in improving food quality and modernizing menus and plateware. Unfortunately, the economic impacts of COVID-19 put a halt to those improvements and the difficult decision was made to close 9 of the 11 remaining restaurants," reads the Sticky Fingers website.

KFC

KFC has been struggling over the past year. According to Circana's Definitive U.S. Restaurant Ranking 2025 report, chicken chains, including Raising Cane's, Wingstop, Chick-fil-A, Zaxby's, Bojangles and Popeyes, saw consumer spending increase in 2024 while KFC saw consumer spending fall by 4% to $4.34 billion, ranking lower than Raising Cane's and Wingstop.

Burger King

After a dismal 2024, Burger King is also struggling. On Thursday, Restaurant Brands International reported quarterly earnings and revenue, with same-store sales of Burger King declining 1.3%, steeper than estimates of a 0.9% decline. However, execs believe things are turning a corner. "As we come into [the second quarter], that momentum has improved meaningfully, so we're seeing some better absolute results as we get into the second quarter that give us confidence in how we're going to navigate the rest of the year," CEO Josh Kobza told CNBC.

On the Border Filed for Chapter 11 in 2025

Things are heading south for Mexican chain On the Border, which filed for Chapter 11 bankruptcy earlier this year, after closing over 12 restaurants nationwide. According to data, the chain operates half as many restaurants as it did at the end of 2023.

Papa John's

Papa John's has a brutal 2024, with things getting slightly better in 2025. North America comparable sales were down 3% from a year ago, as Domestic Company-owned restaurants were down 5% and North America franchised restaurants were down 2%. However, total revenues of $518 million were up 1% compared with the prior year. "We are pleased with our continued progress in the first quarter to advance our transformation as we execute against our five key priorities. Our strategic investments in marketing and technology are driving early momentum in the business, and customers are responding positively to our strengthened value proposition and enhanced digital and loyalty experiences, as evidenced by sequential improvement in comparable sales and transactions," said Todd Penegor, President and CEO, per Business Wire."First quarter results were in line with our expectations, and we are confident we have the right team and strategy to grow restaurant sales, generate sustainable profits throughout the system, and build long-term value for all of our stakeholders," Penegor added.6254a4d1642c605c54bf1cab17d50f1e

Chipotle

Chipotle recently had its worst quarter in five years, with same-store sales falling 0.4% in Q1, the first quarter of 2025. Overall, restaurant transactions fell 2.3%. The popular Mexican chain, which sources about half of its avocados from Mexico, told NBC News it will absorb the costs of the tariffs without raising prices.

Popeyes

Popeyes, another Restaurant Brands chain, saw its same-store sales slide 4%, the most significant drop of the quarter. However, international demand was up with a same-store sales growth of 2.6%.

TGI Fridays Filed for Bankruptcy in November 2024

TGI Friday's confirmed it filed for Chapter 11 bankruptcy in 2024 and has continued shuttering restaurants in 2025. According to its website, only 85 remain open. However, the company recently appointed Phil Broad as President of TGI Fridays International Franchising and hopes to increase its international footprint.

BurgerFi

BurgerFi, the parent company of Anthony's Coal Fired Pizza, filed for Chapter 11 bankruptcy in September 2024. Later in the year, the two restaurants sold at a bankruptcy auction for 54 million.

McDonald's

McDonald's recently experienced the worst quarter since the pandemic, with U.S. same-store sales falling 3.6%, the largest three-month drop since Q2 2020, when they dropped 8.7%. "Consumers today are grappling with uncertainty," said McDonald's Chairman and CEO Chris Kempczinski.