The restaurant industry endured a grueling climate throughout 2025. As dining costs climbed, many families pivoted toward home-cooked meals instead of eating out.
Aside from July, customer traffic dropped consistently every single month, according to data from Black Box Intelligence and CNBC.
The harsh economic climate forced several iconic brands to shrink their footprints. Here are the major chains that announced or completed significant closures this year:
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The classic diner chain axed between 70 and 90 units during 2025. Sales dipped because morning diners sought cheaper fast-food alternatives instead of sit-down meals. By December, a group of private investors purchased the company for $620 million to help stabilize operations.
The coffee titan executed a billion-dollar overhaul strategy over the past twelve months and shuttered approximately 500 North American cafes to improve efficiency. Surprisingly, this included its high-end Seattle Roastery. CEO Brian Niccol aimed to stabilize domestic sales during the massive transition.
The pizza maker shuttered 173 locations globally through the third quarter of 2025. While 62American kitchens closed, most cuts happened within international markets. Despite these losses, Papa John's still maintained nearly 6,000 active stores as the year ended.
Under a plan called “Project Fresh,” Wendy's reviewed every storefront this year. Executives suggested that a “mid-single digit” percentage of shops would vanish by year-end. This resulted in hundreds of shuttered burger joints.
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The parent firm of Outback Steakhouse shut 21 diverse locations during the latter half of the year. This impacted Outback, Bonefish Grill and Carrabba's Italian Grill. A $75 million turnaround project launched recently to help fix their bottom line.
By October’s end, the pasta chain closed 29 corporate-owned shops and expected to shut a few more by the final week of December. The company's goal involved improving financial health by focusing on its strongest remaining markets.
The parent company of Bahama Breeze closed 15 Caribbean-themed eateries in May, representing roughly one-third of the brand's total presence. Darden spent the remainder of 2025 considering selling the chain or converting buildings into Olive Gardens.
Dozens of Hardee's storefronts disappeared this month following a major legal battle. The franchisor sued one of its largest operators for failing to pay rent and taxes. The affected restaurants spanned across eight different states, including Missouri and Georgia.
The “Jack on Track” initiative included heavy cuts throughout 2025. Eighty-six locations were permanently closed by late September and the company plans to remove up to 200 underperforming locations to help boost overall profits.
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