Restaurant Chains Closing Locations in 2025: The Complete List
Updated January 2025: This post has been updated with the latest restaurant closures and bankruptcy filings. The restaurant industry continues to face challenges from inflation, changing consumer habits, and post-pandemic shifts in dining preferences.
The restaurant industry has faced unprecedented challenges over the past few years. From pandemic-related closures to inflation and shifting consumer preferences, many beloved chains are scaling back or shutting down entirely. Whether it is rising food costs, labor shortages, or customers choosing to cook at home, these factors have forced major chains to close hundreds of locations. Here are the restaurant chains closing locations in 2025 and what it means for diners.
Red Lobster
Red Lobster filed for Chapter 11 bankruptcy in May 2024 and has been closing locations rapidly. The seafood chain, once a casual dining staple, announced plans to close over 100 locations. The company blamed rising costs and an ill-fated “endless shrimp” promotion that cost them millions. As of 2025, the chain continues restructuring with significantly fewer locations than its peak.
TGI Fridays
TGI Fridays filed for bankruptcy in November 2024, marking a dramatic fall for the casual dining pioneer. The chain has closed dozens of locations and continues to struggle with declining foot traffic. What was once the go-to spot for appetizers and cocktails has seen customers move to fast-casual alternatives.
Denny’s
The 24-hour diner chain announced in late 2024 that it would close approximately 150 underperforming locations over the next year. Denny’s cited changing late-night dining habits and increased operational costs as key factors in the decision.
Applebee’s
Applebee’s parent company has continued closing underperforming locations, with dozens more shuttered in 2024 and additional closures planned for 2025. The chain has struggled to attract younger diners despite menu updates and promotional deals.
Boston Market
Boston Market has been quietly closing locations for years, and 2024 saw accelerated closures. The rotisserie chicken chain, which once had over 1,200 locations, now operates a fraction of that number.
IHOP
IHOP continues to close underperforming locations as part of its ongoing restructuring. The breakfast chain has pivoted to focus on virtual brands and delivery, but brick-and-mortar closures continue in 2025.
Hooters
Hooters filed for bankruptcy in 2024 and has been closing locations across the country. The chain has struggled to modernize its image and compete with newer sports bar concepts.
Rubio’s Coastal Grill
Rubio’s filed for bankruptcy and closed all California locations in 2024, citing the state’s increased minimum wage. The fish taco chain continues operating in other states but at a reduced scale.
Buca di Beppo
The family-style Italian chain filed for bankruptcy in 2024 and closed nearly half of its locations. Rising food costs and declining traffic at shopping center locations were cited as key factors.
Noodles & Company
Noodles & Company announced it would close up to 40 locations in 2024-2025 as part of a cost-cutting effort. The fast-casual chain has struggled with profitability despite a loyal customer base.
Mod Pizza
The build-your-own pizza chain closed dozens of locations in 2024 after rapid expansion left many stores underperforming. The company continues to restructure its footprint heading into 2025.
What This Means for Diners
If your favorite restaurant is on this list, it is worth checking if your local location is affected before making plans. Many chains are focusing closures on underperforming markets while keeping flagship locations open. The trend toward fast-casual dining and delivery continues to reshape where and how Americans eat out.
We’ll continue updating this list as more closures are announced throughout 2025.
