15 Fast Food Chains Shutting Down In 2024

over the years Fest food has been a major part of American Life holding a special spot in the hearts of many and it's been heavily exported to the rest of the world too take for instance McDonald's with more than 39,000 locations in about a 100 different countries McDonald's not only dominates the industry but the company has seen many competitors come and go over the past several decades however many of these restaurant chains love are on the brink of filing for bankruptcy some even end up meeting a surprising or tragic ending no matter their size from Iconic pancake chains to famous entertainment venues these are some of the Beloved restaurant chains we might lose in 2024 one sup Plantation Sweet Tomatoes these buffet restaurants known as Soup Plantation in Southern California Sweet Tomatoes elsewhere were not just places to eat they were Community hubs family favorites and culinary Havens but then the unthinkable happened after the Corona virus swept through it left a devastating blow to the restaurant The Heartbreak was palpable all 100 or so locations shuttered during State shutdowns and then the final blow the parent company Garden Fresh restaurants filed for bankruptcy though these doors may have closed the spirit of supplantation Sweet Tomatoes will live on two Bravo Mario the company behind the Beloved Italian restaurant chains Bravo cuchina Italiana and Brio Tuscan Grill has been facing tough challenges with Rising food costs and other issues already putting a strain on their business and then just when they thought things couldn't get any worse the Corona virus pandemic hit we've experienced nothing short of devastating sales declines those were the words of food first Global Restaurant CEO Steve late as he addressed the impact of covid-19 on their business reports indicate that early in 2021 10 of their restaurants were forced to closed their doors for good and as States implemented restrictions on dining in an additional 71 locations was shut down leaving just 21 still operating faced with mounting Financial pressure the company had no choice but to file for chapter 11 bankruptcy protection three Outback Steakhouse just a few months after bidding farewell to two Outback Steakhouse locations in Hawaii it looks like another spot from the popular steakhouse chain has served its last bloing onion the Outback Steakhouse of matthan Massachusetts has recently closed its doors for good as reported by local news Outlet the daily voice and if you head over to their Facebook page you'll see the heartbreaking announcements that they're shutting down for good despite these closures Outback is still sizzling with ambition the chain announced back in 2022 that they're gearing up for a big expansion aiming to open 75 to 100 additional locations across the United States in the coming years for Red Lobster from their famous ched Bay Biscuits to aimless shrimp platters Red Lobster has been a go-to spot for seafood enthusiasts Nationwide but despite their tasty offerings the restaurant has faced some choppy Waters in recent years several once thriving locations have been forced to close their doors signaling rough times ahead for the chain in 2021 alone Red Lobster Bid Farewell to five of its restaurants and from 2022 through 2023 eight more locations were shuttered while these closures only make up 1% of Red Lobster's total locations there's concern that the trend could continue into 2024 but the Tha Union group the proud owner of Red Lobster assures us that these closures are all part of a bigger plan five Crispy Cream despite scoring record sales in 2022 and teaming up with the golden arches of McDonald's crispy cream is making some strategic moves in 2023 they announced plans to close four locations last year but don't worry it's all part of a plan to prune away low performing stores rather than a sign of trouble brewing in 2022 the chain Bid Farewell to 10 units that just weren't bringing in enough dough pun intended but here's the sweet part these closures seem to be paying off by the end of the year crispy K cream raked in a whopping $1.52 billion in net revenue according to crispy president and CEO Mike tatsfield we remain very confident in our long-term goal of achieving more than 50,000 points of access globally they're even rolling out a new harb and spoke business model where larger locations act as donut production hubs shipping out freshly baked goodies to smaller shops known as spokes but why do you think awaits them for the rest of the year six California Pizza Kitchen unfortunately C California Pizza Kitchen has found itself in a tough spot it's already filed for bankruptcy while many fast food pizza joints have thrived with delivery services California Pizza Kitchen's focus on sitdown dining has left it struggling to keep up and things have not been easy even before the bankruptcy announcement locations were already shutting down for good including spots in Texas Alabama and Georgia to make matters worse the company is Dr counting in debt with a whopping $400 million owed but only a fraction of that in available funds despite the challenges the CEO remains optimistic stating that California Pizza Kitchen will quickly emerge from the setback but it won't be a cake walk the business also faces months of unpaid rent at many of its locations seven Golden Corral unlike some restaurants that were able to adapt Golden Corral's buffet style service proved to be a major challenge during the pandemic their communal dining spaces and shared serving utensils rais concerns about hygiene and safety forcing many locations to shut down in fact Golden Corral's largest franchisee owning 33 locations in Florida and Georgia had the file for chapter 11 bankruptcy protection while some locations have reopened the road to recovery has been slow CEO L Trenary acknowledges that not all franchises will be able to continue operating without additional financial support according to trainer recovery has been steady but slow eight pot belly back in May 2023 the Pot Belly restaurant chain dropped a bombshell announcing plans to permanently shutter up to 100 locations roughly one quarter of their total company-owned restaurants to tackle a challenge headon they brought in a restructuring consultant and a bank rup the attorney to help navigate the situation and it seems like those efforts have paid off at least to some extent by August the Chicago based chain had revised their estimates now expecting to close fewer than 50 restaurants now that's quite a drop from their initial projection however they did confirm the closure of 16 locations so the road to recovery is still ongoing one major hurdle for partt belly is its lease agreements espe espcially in high rent cities where it operates many locations reportedly the chain has amassed over $200 million in unpaid lease payments adding to its Financial strain to alleviate some of this pressure part belly applied for and received a $10 million payback Protection Program loan however after facing public backlash over large companies receiving PPP loans pot belly made the decision to return the fund nine dve and Buster according to experts at SNP Global Market intelligence dve and Buster's faced a 16% chance of being unable to repay its loans in 2021 if that scenario unfolds again the chain may have to consider filing for bankruptcy closing locations or perhaps even both S&P rack D Busters as the most likely among the largest publicly traded restaurant chains to default on its loans but there's a glimmer of hope in this situation the odds of Dave and Busters defaulting on its loans were over 50% plus S&P believes that with many competing entertainment Concepts struggling dve and Busters could seize the opportunity to expand its market share however the road ahead still looks challenging for the food and game chain and to add to the uncertainty reports emerged that the company would be laying off over 1,300 w workers across seven states 10 PF Changs founded 1993 in Scottdale Arizona the company was riddled with debt pre-2020 when new owners took over in 2019 the chain owed about $675 million the popular Asian beastro restaurant chain pfchangs had its credit rating downgraded largely due to the impact of the Corona virus outbreak but like so many others pfj was suffering from already weak Trends before the pandemic one month after the credit downgrade the chain permanently shut at a location in New York laying off more than 100 people and then in May did the same to a restaurant in Maryland the most telling sign of PF Chang's travels however occurred as recently as September that's when the company announced it would be extending temporary layoffs of thousands of employees worse for the is the fact that it was unable to bring those workers back even though it received a multi-million dollar loan from the federal government 11 KAG Grill back in 1998 Kor Grill burst onto the scene with its unique offerings with 40 scratch made sauces and Global flavors infused into their stove fry and Sushi it quickly became a stand out in the dining World however fast forward to last year and the chain found itself in trouble Port Waters cona Grill filed for bankruptcy closing a staggering 19 locations and sending Shar waves through the industry part of the problem is that the stunning Kona Grill restaurants come with a hefty price tank of around $4 million to build according to a former CEO the leadership's ambitious expansion plans may have been a contributing factor to the chains downfall as one former CEO revealed to restaurant business the company's leadership may have been too eager to expand leading to financial strain however when sales started the drop off in 2015 K panicked and cut back on candary Innovation cut back on management and support staff and employee training all of this had a negative impact on the guest experience as of 2024 we hope they're not going to close totally 12 Marie calender you might recognize Marie Calendar's name from the frozen food aisle but did you know there was a real Marie calendar Marie started out baking delicious dessert pies in her modest Orange County home back in the 1940s in California by the 1950s she was whipping up 200 pies a day for local restaurants and soon enough her family decided to open their own restaurants to Showcase Maurice colonary Creations but despite their early success the chain faced challenges when it was owned by the Perkins Pancake restaurants company which filed for bankruptcy in 2019 today B Calenders is moving forward under new ownership but the number of locations has dwindled from over 50 to fewer than 30 in the western us but fear not pie of fishos even if your local Marie calendar is no more you can still enjoy their Delicious Pies from the comfort of your own home with their Frozen options 13 metro d din Metro Diner first opened its doors in Jacksonville Florida back in 1992 serving up classic comfort food with a Twist but it wasn't until 2010 when the chain was featured on the Food Network show Diners Drive-Ins and Dives that his popularity sore to new heights however despite its initial success Metro Diner has faced challenges in recent years resulting in the closure of several locations both Las Vegas locations have shut their doors along with restaurants in Indianapolis Birmingham South Tulsa and makon one reason cited for the pull out from Las Vegas is the state's wage loss Nevada requires employers to pay tipped workers the regular minimum wage unlike many other states where workers who receive tips can be paid a lower base rate Metro Dino stated that complying with this law made it difficult for the company to remain profitable in Las Vegas 14 Gordon Bish Brewery restaurant Gordon Bish with its Signature German style loggers has been a fixture in the American Brewing scene for 30 years but lately the chain has been facing some challenges over the past year all four Arizona locations have closed their doors and in early 2020 Gordon Bish B A loha to a zon restaurant in Hawaii now only 17 locations remain across the United States half as many as there once was but Gordon beish isn't ready to call it quits just yet the company's very first Brew PB opened in Palo Alto California in 1988 has undergone a transformation it's been rebranded as Dan Gordon and now offers a Farm totable menu with a big focus on barbecue 15 Benny Hana when the first Benny Hana Restaurant opened its doors in 19 64 it revolutionized a dining experience with its captivating theatricality from the mesmerizing Onan volcano to the skillful tonaki chefs Benny Hana never fails to entertain its guests over the years Benny Hana became synonymous with Tepanyaki introducing Americans to the art of Japanese griddle cooking they unique approach quickly gained popularity But as time passed competition in the teaki industry grew fiercer as of now the Benny hter in Sacramento California has closed its doors with the years still Ono you might hear that this beloved restaurant is totally shut down what do you think about these restaurants will they disappear or are we going to see them rebranded the new ones we look forward to your comments and thank you for watching

Channel: Epic Economist

Views: 229,975

Keywords: restaurant shut down, restaurant closing, restaurants struggling, fast food chain collapse, fast food chain closing, restaurant bankruptcies, fast food chain in trouble, restaurant sales, food inflation, restaurant prices, retail crisis, retail collapse, fast food shutdown, restaurant crisis, fast food chain crisis, economic collapse, economic crisis

Id: 7Mww32h46zQ

Length: 15min 54sec (954 seconds)

Published: Sun Feb 11 2024