13 Restaurant Chains That Lost A Bunch Of Locations In 2025

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Even some of the most iconic restaurant chains struggle from time to time. Simply put, it's not easy to operate a company on a national or global scale. In what has become a notorious example, a series of closures in 2024 meant Red Lobster had to rethink how it did business. As a result, Red Lobster wound up with a new CEO, whose ideas helped the once struggling seafood chain stage a comeback.

Red Lobster may have reversed its fortune, but plenty of chain restaurants have had to close a bunch of locations in similar fashion over the course of 2025. Surely most, if not all of these businesses are hoping for a salvation similar to Red Lobster's, but such a turnaround is never guaranteed. While each of the following chains has closed a significant number of restaurants, for one chain, that significant number could be a handful, while for an international juggernaut, that number might be in the hundreds. Whatever the case may be, each of these chains lost its fair share of locations in 2025.

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Synonymous with the classic American diner concept in the chain restaurant world is Denny's. The quality of its food may not be the chain's defining characteristic, but 24-hour dining rooms and a large menu of inexpensive American staples earned Denny's its own particular niche. However, over the course of 2025, that niche got a little smaller as the Denny's company decided to shutter between 70 and 90 restaurants in total.

The trajectory of Denny's in 2025 started the year prior, when the chain shuttered a total of 88 locations in 2024. Initially, that wave was supposed to be the first step in a series of 150 closures before the end of 2025. But at the start of 2025, the number of additional locations planned to close increased. According to the company's executive vice president and chief global development officer, a major contributing factor behind many of the shuttering locations was the simple fact that they were old. Either because the cost of remodeling those old restaurants was too high, or because those restaurants' neighborhoods no longer maintained demand for a Denny's, conditions were purportedly such that it made more sense to close many of them than attempt to adapt.

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Some chain restaurants seem untouchable, inextricably intertwined with the American dining landscape — McDonald's, naturally, being the prime example. In the world of pizza, Domino's is the industry leader, synonymous to its countless customers with pizza delivery. Despite its spot at the top, more than 200 Domino's locations closed in 2025. That said, this was not necessarily the result of an overall downturn in Domino's business, but seemingly an issue localized in one particular market.

Specifically, all of the Domino's locations that were shuttered in 2025 were operated by a franchisee called Domino's Pizza Enterprises. Furthermore, 172 of those restaurants were in Japan. The locations of the remaining 33 Domino's that closed in this same wave are unclear. Behind many of these closures, according to a representative for Domino's Pizza Enterprises, was the fact they opened amidst the COVID-19 pandemic. During that time, demand for food delivery skyrocketed. In post-pandemic conditions, demand naturally dropped. Nevertheless, even if the majority of locations that closed were specific to one particular international market and potentially the victim of extenuating circumstances, it's not often that such an iconic business shutters stores in such a large quantity, regardless of rationale.

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Dairy Queen operates with a distinct and perhaps singular approach to fast food. The main attraction at Dairy Queen is its dessert menu, but it's also possible to order hot, savory entrees like burgers and chicken strips. That said, you might want to think twice before ordering a burger at Dairy Queen. Simply put, the chain's area of expertise is frozen desserts, and chains that specialize in burgers are ample in quantity. What could be described as a lack of focus didn't do Dairy Queen any favors in 2025, given the chain's shuttering of well over 30 locations in Texas.

For what it's worth, each of those Texas Dairy Queens was operated by the same franchisee. Seemingly behind the wave of closures was a disagreement over remodeling those restaurants, based on the fact that a court document claimed Dairy Queen would terminate the owner's franchise rights were they to not go through with remodeling. Nevertheless, it's hard to imagine that the franchisee would have let go of those locations if business had been booming. So, even if the closures were isolated in one market, it's safe to say financial issues were ultimately a significant motivating factor.

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For those with access to one, Del Taco may well be a viable Taco Bell alternative. There are plenty of Californians, for example, who prefer the former option. In 2021, Jack in the Box purchased Del Taco, and it seemed like it was a regional taco chain ready to take over the U.S. But that didn't quite come to fruition, with Del Taco operating in a total of 19 states as of 2025, and shuttering locations — albeit some just temporarily — throughout the year.

First, every Del Taco in Colorado but one closed in February. The establishments remained closed through June, though by mid-July, five of 17 closed locations were reopened. In short, those locations were all owned by the same franchisee, and the ones that reopened transitioned to corporate ownership. At least one of the shuttered locations was shut down for good, never to reopen. Across the country, in Atlanta, seven Del Taco locations closed down after its franchisee filed for bankruptcy. The Del Taco corporation announced its intent to sublease those Atlanta restaurants, but as of mid-August, they seemed to be without lessees. Some of these Del Taco closures may not be permanent, but simply put, a sizable number of customers in Colorado and Atlanta lost access to their local Del Tacos in 2025. Plus, the financial struggles of its parent company, Jack in the Box, suggest that more of those locations could ultimately shutter for good.

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On its surface, the Del Taco closures in Colorado and Atlanta seem like the responsibility of individual franchisees. However, Del Taco's parent company Jack in the Box struggled in 2025 too, and its ownership of Del Taco was even a contributing factor. In April, Jack in the Box announced its intent to sell Del Taco, predicated on the expectation the Mexican chain wouldn't help their business for years to come, reflected by a drop in sales of 3.6%.

At that same time, Jack in the Box revealed that it would close around 10% of its more than 2,000 locations. Its first wave of closures would consist of 80 to 120 stores before the end of 2025. Prior to this decision, the chain's stock price had fallen by 57% in 2025 alone, so some sort of drastic measure was necessary. With the states of Del Taco and Jack in the Box still developing nearing the end of 2025, these restaurant closures could help turn their fortunes around, or they could be the start of an ongoing downturn. Whatever the case may be, it's clear both chains are primed to kick off 2026 with fewer locations than there were before.

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In the world of casual chain sit-down dining, Chili's is 2025's big winner. Even if Chili's is changing in 2025, that initiative is not in response to a lack of sales but an adaptation to viral success, pretty much unprecedented in the chain's recent history. TGI Fridays may garner a similar degree of name recognition, but its 2025 was just about as bleak as Chili's was successful.

The decline of TGI Fridays kicked off in 2024, at the start of which the chain operated around 270 locations. By the end of that year, the company had filed for bankruptcy and closed around 100 restaurants. Closures persisted into 2025, reducing the chain's total footprint to around 85 stores not even halfway through the year. In April of 2025 alone, 30 TGI Fridays locations shuttered in total. So, as Chili's surges in popularity on the strength of its viral mozzarella sticks, TGI Fridays seems to be at risk of becoming a relic of chain restaurant history after losing about half of its restaurants that were in operation in the U.S. at the start of 2025. Not all hope is lost for the chain, however — in early September, TGI Fridays announced a plan to open 50 new international locations in Peru and Japan. Should this gambit pay off, the chain's future might not be closure but success abroad that eclipses its domestic footprint, or even a bounce-back funded by international business dealings.

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Chili's may be surging and TGI Friday's declining in the U.S., but what about the rest of the big names in casual chain sit-down dining? As it turns out, Chili's may well be the exception to the rule, if Red Robin's 2025 trajectory is any indication.

In March, Red Robin announced its plans to close between 10 and 15 locations. However, this will merely mark the first step in a larger initiative to close up to 70 Red Robin restaurants over the course of five years, the timing of each closure corresponding with whenever a location's lease is up. Revenue was down and losses were up for the chain in 2024, hence the move to shutter restaurants performing below expectations. With that said, some signs point to a bounce-back for Red Robin — namely, increases in same-store sales, foot traffic, and customer satisfaction. Paring down its total number of locations, then, could ultimately become part of the chain's revitalization if all goes according to plan.

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Based on its USDA classification, Outback Steakhouse actually serves low-quality steaks compared to some of its competitors. A steak at Outback is also quite a bit cheaper than at many of its rival chains, so that lower quality may well be warranted. Warranted or not, however, diners seemingly aren't eating at Outback like they used to based on the chain's trajectory since 2024.

Bloomin' Brands Inc., which is the parent company of Outback and a number of other sit-down chains, announced in February of 2024 that it would be closing a total of 41 restaurants across all of the brands it operates. While that means chains like Bonefish Grill, Carrabba's Italian Grill, and Fleming's Prime Steakhouse were included in this initiative, plenty of Outbacks indeed started closing that year. There's no public count of just how many locations closed in 2025, but Outback restaurants across the U.S. have been affected. Without an official list of shuttered locations available, it's unclear whether the restaurants that ceased operations in 2025 were part of the planned 41, or if they were in addition to that first wave. In either case, Outback's notorious restaurant closures persisted into 2025.

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In March of 2025, Hooters announced that it would revamp its business model in favor of a more family-friendly atmosphere and higher quality food. Naturally, Hooters wouldn't be planning such a drastic change if business weren't down and the brand was not in need of revitalization.

First, in conjunction with the March announcement of its new business practices, Hooters filed for bankruptcy. At that time, the chain claimed its financial state would not necessitate any restaurant closings. But that changed in June, when more than 30 stores located across several states shuttered. For what it's worth, the closures technically kicked off in 2024, prior to the bankruptcy announcement, so the new wave of closures continued a developing trend. Then, in August, the Hooters at Las Vegas' Oyo Hotel & Casino — formerly the Hooters Hotel & Casino — shut down, suggesting that the chain's planned revitalization wasn't quite taking hold heading into the final quarter of 2025.

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On the Border Mexican Grill & Cantina is a sit-down Tex-Mex chain, specializing in Mexican-American staples like fajitas and margaritas. Seemingly every casual sit-down chain not named Chili's found itself struggling in 2025, and On the Border wound up in more dire straits, even, than Red Robin or Outback Steakhouse.

In March of 2025, as is typically the case before a series of restaurant closures, On the Border filed for bankruptcy, having already closed a number of locations. Then, later that month, the chain announced it would be shutting down more than 70 locations in total, accounting for the vast majority of its remaining retail footprint. In cases where the company couldn't simply let a restaurant's lease expire, On the Border requested during its bankruptcy proceedings permission to break ongoing leases. A representative for the company cited simple economics as the leading cause of this downturn, highlighting the fact that an increasing number of consumers prefer to dine in than eat out.

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As its name makes clear, noodles are the Noodles & Company chain's specialty. Types of noodle dishes available on its menu range from Italian pastas to Asian staples, and even some bold fusions of flavors like a Bulgogi Steak Mac & Cheese. At the start of 2025, Noodles & Company operated more than 400 restaurants across the U.S., but declining sales necessitated the closures of a fair number of those stores.

Noodles & Company announced this development in August of 2025 in conjunction with the release of its second-quarter finances. Simply put, losses were up and revenue was down, leading the chain to initiate a downsizing initiative. Altogether, between 28 and 32 locations were marked for closure, all owned by the company rather than franchisees. With that said, in addition to six restaurant closures around the time of this announcement, Noodles & Company opened one new store, so not all hope is lost for fans of the chain's variety of noodle dishes. Plus, not only was this news preceded by a menu revamp, but the company decided to institute a new CEO. Altogether, then, a Noodles & Company renaissance is a distinct possibility, despite the fact that it shrunk in size over the course of 2025.

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Darden Restaurants is a major player in the sit-down chain restaurant world, owning popular names like Olive Garden, Ruth's Chris Steak House, and Yard House. Also in its portfolio is Floridian-Caribbean chain Bahama Breeze. As an American restaurant serving Caribbean-inspired fare, its menu includes some legitimately island-y dishes like conch fritters, as well as American staples like baby back ribs. That unique approach, however, apparently wasn't cutting it in 2025.

Not only did Bahama Breeze decline in business, but as of June, Darden Restaurants was considering what sounds like a complete brand shutdown. First, leading up to this development, 15 Bahama Breezes shuttered in the spring, leaving a total of 28 in operation. That wasn't enough to turn around business, and the CEO of Darden Restaurants announced that operating the chain no longer made economic sense. Before closing it down entirely, its ownership did float the idea of selling the brand. But from the looks of it, without any interested buyers, Darden Restaurants will convert any remaining Bahama Breeze locations to some of the other restaurants in its portfolio.

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In September 2023, FAT Brands — the company that owns Fatburger, Round Table Pizza, Johnny Rockets, and some other chains — acquired Smokey Bones Bar & Fire Grill for $30 million. Smokey Bones specializes in everything meat, from barbecue staples like brisket and ribs, to more universal fare like burgers and steaks. Less than two years after its acquisition, Smokey Bones hit a rough patch, with FAT Brands planning on converting the vast majority of its locations into Twin Peaks restaurants.

Unrelated to the all-time classic TV series, Twin Peaks is a Hooters competitor, apparently growing in popularity amidst Hooters' decline. Meanwhile, at the start of 2025, the Smokey Bones chain consisted of 54 locations. Nine of those closed in March. Then, in June, FAT Brands announced its intent to convert 30 of the 45 remaining Smokey Bones into Twin Peaks restaurants. While this is an ongoing process that will likely continue into 2026, even by the end of 2025, Smokey Bones is set to be a shadow of what it once was.