10 major restaurant chains that have closed locations in 2024
Big restaurant chains aren’t fairing too well in the inflation economy.
With financial pressures, shifting consumer demand, lagging sales, and cost-cutting measures all playing a role in daily operations, some beloved chains have been forced to close locations in a bid to salvage their business.
Prime dining staples, such as Applebee’s, Red Lobster, and most recently Hooters, have each pointed to underperformance as one key factor in their decision to close locations. The trio isn’t alone. We’ve compiled a list of some other major chains that have decided to shutter spots this year. Let’s take a look.
Hooters
On June 24, a Hooters spokesperson confirmed to Quartz that it was under pressure from current market conditions and would close a substantial number of locations. The Atlanta-based chain did not confirm the number of locations it would close. Reports have pointed to at least 41 locations closing.
Applebee’s
Applebee’s has closed hundreds of locations since 2017. So far this year, the Dine Brands-owned company has closed 5 restaurants and is on track to close between 25 and 35, according to chief executive officer John Peyton.
The international house of pancakes, better known as IHOP, has closed 9 locations this year. The Dine Brands-owned company is bracing for more closures, according to CEO John Peyton.
Red Lobster
Red Lobster has closed more than 50 locations. The seafood giant famous for its “all you can eat shrimp” bundle is filing for bankruptcy protection. What’s more, its liquidator TAGeX Brands said it would auction off whatever’s inside empty locations to the highest bidder. To make matters worse, Red Lobster’s owner, Thai Union Group, said it wanted to sell its remaining stake in the chain by the end of 2024.
T.G.I. Fridays
T.G.I. Friday’s started off the year in a less cheery tone. In January, it said it planned to close 36 of its underperforming locations across the U.S. as it looked to streamline operations.
Denny’s
America’s beloved diner Denny’s has closed dozens of its locations since last year. In 2023, it closed 57 restaurants. This year, it plans to close 10 to 20 locations, but it does have hopes to open 50 new restaurants, according to chief financial officer Robert Verostek.
Boston Market
Boston Market is down to the wire. It started 2023 with roughly 300 locations and is down to just 27, according to Restaurant Business. The Colorado-based chain is dealing with a slew of financial issues, including unpaid bills, lawsuits, and evictions.
Outback Steakhouse
Outback Steakhouse said during its fourth quarter earnings call that it planned to close 41 underperforming locations. But even so, the Bloomin’ Brands-owned company has plans to open 40 to 45 news restaurants to make up the difference.
Cracker Barrel
In April, Cracker Barrel closed four of its locations, two in California, one in Oregon, and another in South Carolina, due to underperformance. The chain has increased menu prices by 6.8%, according to its latest quarterly report. Meanwhile, it plans to remodel between 25 and 30 of its shops in 2025. The Tennessee-based company has over 660 locations across 45 states.
Wendy’s
Gunther Plosch, chief financial officer at Wendy’s, told investors during the company’s earnings call in early May that the fast casual chain plans to close “a little bit more” than 100 restaurants in 2024. The chain, however, plans to open as many as 300 spots during the year.