10 Restaurant Chains Closing Locations In 2024
We've all had the experience of learning that one of our favorite go-to neighborhood coffee shops or burger joints is going out of business. After all, the restaurant industry comes with plenty of uncertainty, and even beloved local spots that seem to be doing well may shutter for a variety of reasons. You might think big national chains would be in a better position, but challenges related to inflation, changes in customer behavior, and other financial pressures mean even these restaurants may struggle to keep their doors open, despite being backed by large corporate entities.
Since the start of 2024, a wide variety of chains—from popular cookie chain Crumbl to Tex-Mex spot Tijuana Flats—have closed multiple locations. In some cases, the closings are directly tied to financial difficulties and may even coincide with bankruptcy filings. However, not all closings are a sign that a brand is in trouble. Some have cited other considerations, like the underperformance of specific stores. Others may simultaneously announce a slew of new openings, a signal the chain is actually growing even as it shutters a handful of locations. Meanwhile, still other restaurant chains have closed suddenly and without warning, leaving customers and even employees wondering what went wrong.
So, will your go-to chain restaurant be among the restaurants that are shrinking this year? Read on for the scoop on 10 restaurant chains that have already closed (or announced plans to close) locations in 2024.
Cracker Barrel
At the beginning of April, Cracker Barrel closed four restaurants located in Sacramento, Calif.; Santa Maria, Calif.; Medford, Ore.; and Columbia, S.C. The Oregon location was the last remaining Cracker Barrel in the state, with the chain closing three Oregon restaurants in 2023. California now only has five Cracker Barrel locations, while South Carolina has 23, according to the chain's website.
"As a standard course of business, we continually evaluate the performance of our stores, using various criteria to ensure we are meeting the needs of our guests and our business," Cracker Barrel said in a statement previously shared with Eat This, Not That! "The decision to close a store is never one we take lightly, and our focus right now is on assisting our impacted employees during this transition."
The recent shutterings follow more than a year of declining customer traffic, with the restaurant chain reporting a 4% decrease during its most recent quarter.
Applebee's
Over the last several years, Applebee's has faced numerous closures, shuttering around 300 restaurants since 2017. Last year, the chain closed 46 locations, and this year, Applebee's is bidding farewell to even more restaurants.
During a fourth-quarter earnings call, Tony Moralejo, the president of Applebee's, shared that Dine Brands Global, the chain's parent company, expects 25 to 35 more Applebee's locations will shut down in 2024.
As part of the company's growth efforts, Dine Brands plans to focus on initiatives like its co-branded Applebee's and IHOP restaurants. These could open as early as the first quarter of 2025, according to Nation's Restaurant News.
Additionally, Flynn Group, a major restaurant operator, plans to expand Applebee's with 25 new restaurants over the next seven years. The company recently acquired 26 Applebee's restaurants in Florida and Georgia.
TGI Fridays
At the beginning of the year, TGI Fridays announced the closure of 36 "underperforming" restaurants in select markets across the U.S. This decision was part of its "ongoing growth strategy," according to a company press release.
CNN shared a list of the affected locations, with New Jersey being the hardest hit, losing seven locations. Other states that faced closures included California, Colorado, Connecticut, Florida, Massachusetts, Maryland, New Hampshire, New York, Pennsylvania, Texas, and Virginia. Along with the closures, TGI Fridays also sold eight corporate-owned locations to Ray Blanchette, the company's former CEO.
"By strengthening our franchise model and closing underperforming stores, we are creating an unprecedented opportunity for Fridays to drive forward its vision for the future," Ray Risley, U.S. president and chief operating officer at TGI Fridays, said in the press release.
Denny's
In 2023, Denny's shut the doors of 57 restaurants, citing inflation-related challenges as the reason. The closures didn't end there. During the chain's fourth-quarter earnings call, Robert Verostek, the restaurant chain's CFO, said the breakfast chain is working through some "additional closures," which are the result of "those inflationary pressures."
According to the chain's earnings release, Denny's plans to close 10 to 20 locations in 2024. These would slow the closure rate relative to last year, according to Restaurant Dive.
Looking ahead, the chain plans to open about 30 restaurants in 2024.
Boston Market
Boston Market has been on the decline for some time, confronting mass closures, legal issues, and other financial troubles. In 2023, the restaurant chain had around 300 restaurants. As of March 2024, it's down to a mere 27 stores, according to Restaurant Business. The closures were reportedly driven by landlord evictions due to unpaid bills and state officials shutting down restaurants over unpaid sales taxes. The chain has also faced over 150 lawsuits, many of which also revolve around unpaid bills.
In response to Restaurant Business' reporting, Jay Pandya, Boston Market's owner, claimed there are "more than double" that number of Boston Market locations, though Restaurant Business noted that Pandya failed to provide a list.
We attempted to reach a representative at Boston Market for confirmation, but there is no media contact information available, and the contact page on the restaurant chain's website provides only a physical mailing address and a catering hotline phone number.
Mod Pizza
In March 2024, fast-casual chain Mod Pizza shut down 27 restaurants across 11 states and the District of Columbia. The closures affected restaurants in California, Philadelphia, Chicago, Dallas, Washington, D.C., Wisconsin, Seattle, New Jersey, Florida, Oklahoma, Virginia, and Oregon.
In addition to the recent closures, a franchisee shuttered one Atlanta location. While some suspected that the five California closures were prompted by the increased fast-food minimum wage, Rick Van Warner, a Mod spokesperson, told Restaurant Business that this was not the case, calling the timing coincidental. According to Van Warner, the shuttered restaurants were "underperformers."
PDQ
In February, this regional restaurant chain closed eight restaurants across North and South Carolina. Six of the closures were in North Carolina, which currently has four PDQ locations. South Carolina no longer has any PDQ stores. According to PDQ's website, the chain currently operates 59 locations.
In a statement shared with CBS 17, PDQ representatives said: "This difficult decision comes after careful consideration and evaluation of market conditions."
The brand did not share any more specific details on why it closed these eight locations or whether there would be additional closures in the near future.
Outback Steakhouse
During its fourth-quarter earnings call in February, Bloomin' Brands, the parent company of Outback Steakhouse, Carrabba's Italian Grill, and Bonefish Grill, announced that it closed 41 "underperforming locations."
Dave Dino, the company's CEO, said most of these restaurants were "older assets with leases from the '90s and early 2000s," adding that the company closed these restaurants because of "a variety of factors, including sales and traffic, trade areas and the investments that would have to be made to improve the restaurants."
During the earnings call, Chris Meyer, Bloomin' Brands' CFO, noted most of the closures were Outback restaurants. That being said, Bloomin' Brands expects to nearly triple its Outback openings in 2024 and plans to open around 18 new restaurants this year.
Hardee's
Following a string of closures in 2023, Hardee's shuttered several more locations this year. In Central Illinois, the chain closed restaurants in Champaign, Chatham, Monticello, Springfield, and Virden. In Southern Illinois, Hardee's closed locations in Carterville and Du Quoin, as reported by KFVS12. Hardee's did not reveal the reason behind the closures.
In addition to these Illinois restaurants, Hardee's also closed one restaurant in Spring Hill, Tenn., according to local news outlet Williamson Source.
Tijuana Flats
On April 19, Tijuana Flats, a chain of fast-casual Tex-Mex restaurants, announced it had filed for Chapter 11 bankruptcy and closed 11 restaurants. Flatheads, LLC. is now acquiring the restaurant brand. According to a company representative, 10 of these affected restaurants were in Florida, while one was in Virginia.
In a press release, Tijuana Flats said the closures were "a result of a unit-by-unit analysis of financial performance, occupancy costs, and market condition." As a new owner, Flatheads plans to "revitalize" the restaurants and "reinvigorat[e] the customer experience."
While those closings coincided with the bankruptcy news, they weren't the first Tijuana Flats closings this year. The brand has shuttered a total of 40 restaurants since the start of 2024. There are now 65 company-owned restaurants in Florida and 26 franchisee-run locations across Florida, Alabama, North Carolina, and Tennessee.
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