These Once-Struggling Restaurant Chains Are Making Big Comebacks In 2026

Just about everyone has their favorite restaurant chain. Whether it's a beloved local chain specific to your region, or simply an old standby that has been serving food to your family for generations, there's something comforting about heading to your favorite chain restaurant for some familiar food.

Nothing lasts forever, though. Over the decades, numerous once-famous restaurant chains have completely disappeared, closing their doors forever. And if a chain as powerful and ubiquitous as Howard Johnson's – once the biggest restaurant chain in America – can shut down, any restaurant chain could potentially be one financial misstep or scandal away from going the way of the HoJo.

But not every restaurant chain that goes down stays down for the count. Sometimes, even restaurant chains that have been forced to declare bankruptcy have managed to rebound and rebuild. And 2026 is shaping up to be a pivotal year for a number of large restaurant chains that have formulated plans to reverse recent struggles and rebuild. So is your favorite chain among those poised to make a big comeback in 2026? Or, like Howard Johnson's, will you soon only be able to visit your favorite eatery in wistful memories? Here's a look at what the future might hold for these restaurants coming back from the brink.

In 2023, Red Lobster generated headlines when it decided to make its Endless Shrimp promo a permanent part of the menu. But it turns out that the old adage "there's no such thing as bad publicity" isn't necessarily true — and that permanent menus aren't so permanent. The company reportedly lost over $11 million in revenue before yanking the promotion, and a year later declared bankruptcy, closing over a hundred locations in the process.

Did Endless Shrimp really bankrupt Red Lobster? It's a little more complicated than that, as the Endless Shrimp promotion was just one symptom of a sick business model. That ultimately resulted in Red Lobster reorganizing and emerging from bankruptcy in 2025 under a new ownership group with a new CEO: Damola Adamolekun.

Following some layoffs in December 2025, Adamolekun has big plans for what he told Fortune magazine would be the "greatest comeback in the history of the restaurant industry." Red Lobster will be embracing cutting-edge, AI-assisted ordering technology, and is planning an expanded Lobsterfest with new cocktail options. He told Geoff Bennet on the PBS "Settle In" podcast that the company started by strengthening the menu, fixing areas of concern with old favorites while also adding new updated options. "This is about like a turnaround, so it's very high stakes and very high risk in terms of the outcome of the business," he said (via YouTube). "People care about what happens to Red Lobster a lot more than a lot of other companies." 

On the surface, Chipotle Mexican Grill seems like one of the strongest restaurant chains around. In October 2025, the company issued a press release touting growth numbers that included revenue for the third quarter topping $3 billion and the opening of dozens of new locations. In December 2025, Chipotle opened its 4,000th restaurant, up from less than 2,800 just five years earlier.

But peek under the hood and you'll see a different story. Over the course of 2025, Chipotle stock dropped a whopping 35%, and was down 46% from the summer of 2024. The main reason? The economy, with reports indicating that the chain's core demographic — customers between 25 and 35 years old with an income under $100,000 — were choosing to eat at home rather than hit up Chipotle, or any restaurant for that matter.

But that hasn't shaken the company's conviction that they are on the right path. Restaurant number 4,000 is just the latest milestone on the company's long-term plan to expand to 7,000 locations worldwide. And the chain has no plans to slow down, stating in a press release that they expect to open around 350 new locations in 2026 alone. Indeed, if anything Chipotle's ambitions have even grown. In September 2025, the chain announced that it would be expanding into Asia, with new South Korea and Singapore locations set to open in 2026 — a move attributed in part to K-Pop stars falling in love with Chipotle while on tour.

TGI Fridays has been through the ringer in recent years. After reaching its peak with roughly 600 locations in the United States back in 2008, the casual dining chain had consolidated down to around 270 at the start of 2024. By the end of the year, though, TGI Fridays had closed more locations, shrinking down to just 85 as the company was forced to declare bankruptcy.

The chain has continued to shrink, ending 2025 with only 79 domestic locations left in operation. But while TGI Fridays may seem to be on the ropes, there are signs of hope. With approximately 300 franchised locations still in operation outside the United States, the company's international imprint remains strong. And the chain has big plans to help turn around its fortunes in America as well.

In January 2026, TGI Fridays' CEO Ray Blanchette announced in a company press release a new plan called "1-2-3 Strategic Vision." The overall goal: to expand by 2030 from the current 400 or so locations worldwide to a global total topping 1,000. As a start, the company announced various development deals to build 150 new locations. "Our focus as we accelerate our growth is to resonate with the next generation of consumers while preserving the classic Americana feel and signature experience that has made the brand beloved in more than 40 countries," Blanchette said.

One of the most surprising and unlikely comeback stories in chain restaurant history is underway with the announcement that Chi-Chi's is planning a return. To understand why this is a big deal, you have to rewind the clock more than two decades to the sequence of events that destroyed one of the biggest restaurant chains in America.

In 2003, Chi-Chi's declared bankruptcy for the second time after a series of financial misadventures. Things looked grim — and that was before people started dying. A hepatitis A outbreak at a Chi-Chi's restaurant in Pennsylvania resulted in more than 650 people falling ill, and four deaths. It was the straw that broke the camel's back. By the fall of 2004, Chi-Chi's had been sold and all the remaining U.S. locations closed; some locations overseas soldiered on, but the last one reportedly closed in 2024.

Two decades after Chi-Chi's restaurants disappeared from America, though, the chain is making a shock return. In the fall of 2025, Chi-Chi's officially returned with the grand opening of a new flagship location in Minnesota. And that's just the beginning. According to a pitch prepared for possible investors, the burgeoning chain hopes to expand throughout the midwest in 2026, and go national in 2027 and beyond. "CHI-CHI'S is back stronger than ever," said Michael McDermott, son of Chi-Chi's co-founder Marno McDermott, in a press release. "We're bringing back the food, energy, and fun that people love, now with a fresh twist for a whole new generation."

Since it was founded in 2010, Cava Grill has made a name for itself in the fast casual dining market thanks to its focus on fresh Mediterranean food. Success of the initial locations led to rapid expansions, and in 2023 the company went public on the stock market. That initial public offering was a massive success. Stock prices soared and the company used the influx of revenue to open a bunch of new locations, pushing the total over 400 nationwide.

But by the end of 2025, the value of Cava shares had cratered, losing nearly two thirds of its value from its peak price even though company revenue went up 20% in a year. The problem? That corresponded with an 18% increase in the number of stores, meaning the extra revenue was simply a matter of having more stores, not necessarily more revenue per store.

Cava has an interesting plan to turn things around, though: even more expansion. That means more than just more locations, though. In 2024, it opened a giant new food processing facility to support not just all of the restaurants, but also an initiative to land Cava branded products in your local grocery stores. The chain is also plowing ahead with a grand vision to hit 1,000 locations by 2032. To reach that goal, the company is planning to open roughly 70 new restaurants in 2026. If all goes to plan, the losses of 2025 will have just been a bump in the road.

Friendly's was once one of the biggest restaurant chains in America. Founded in Massachusetts in 1935, the chain eventually hit a peak of 850 locations in the 1990s. But then things started going sour. The chain changed hands several times, and was forced to declare bankruptcy not once, but twice, in 2011 and again in 2020. By 2025, it was down to roughly 100 locations, and closings continued.

But something else happened in 2025 that might change the company's fortunes once more, this time for the better. Amol Kohli grew up in Friendly's — literally. He began working at the restaurant as a waiter when he was just 15 years old. He worked his way up the ladder, eventually becoming a franchisee, finally owning more than 30 locations before ultimately buying the entire chain.

Unlike some new corporate overlords, Kohli has a deep love for the Friendly's brand. And he plans to revitalize the company by encouraging workers to do the same thing he did and treat their job as a long-term career path. He hopes that by getting Friendly's employees to invest not just their time but their hearts, the chain can build a foundation of people committed to the brand. "Some of the people that are on my executive team now were dishwashers and cooks," Kohli told CNBC. "This is one of the few [industries] in the entire world that you can literally start from that level and work your way up to a CEO or executive."

Perkins Restaurant & Bakery was one of America's favorite family restaurant chains. But it all fell apart. In 2011, the chain declared bankruptcy. Though it briefly rebounded, expanding to nearly 400 locations by 2016, the company had to declare bankruptcy again in 2019. It was sold to a new ownership group just in time for the COVID-19 pandemic of 2020 to lay waste to the restaurant industry.

But now things are looking up. Slimmed down to around 300 locations, the chain has rebranded as Perkins American Food Co. and is set on new expansions with new concepts. In the summer of 2025, Peter Ortiz, Chief Development Officer for Ascent Hospitality Management for the chain, said in a press release that the company would be aggressively pursuing growth with the chain's new Perkins Griddle & Go cafe concept.

"Franchisees across the country have shown strong interest in Griddle & Go. We signed an impressive number of units in New Jersey, which will be home to our flagship U.S. restaurant," Ortiz said. "We are eager to bring this modern take on Perkins to more markets — new and existing — with the support of our franchise partners." He's not kidding about New Jersey, as the chain is planning to open 46 Perkins Griddle & Go locations in the state. So will New Jersey become the new breakfast capital of America? We're here for it.

Rewind two decades and you'll find a big sandwich battle being waged between two of the most ubiquitous restaurant chains in the United States: Subway and Quiznos. Though Subway was the undisputed king, Quiznos was making major inroads, expanding to 4,700 locations nationwide by 2007.

And then it collapsed. Within just 10 years, more than 90% of Quiznos locations in the U.S. had closed their doors. A leveraged buyout led to crippling debt which led to Quiznos declaring bankruptcy in 2014, and by 2024, there were only 148 locations still operating. About all that was left was an ironic nostalgia for Quiznos' once-reviled Spongmonkey mascots.

But the company isn't throwing in the towel just yet. Far from it. In 2025, Quiznos opened its first modular Qube restaurant concept. With fast food delivery windows and drive-thrus, and a promise of futuristic innovations like self-serving food lockers, Quiznos is banking on high-tech solutions to fuel its comeback. And the chain is back in the expansion business, announcing new locations for 2026. Plus, there are still nearly 200 locations operating overseas as well. With a little luck, maybe we'll see those Spongmonkeys gracing our TV screens again soon.

Bennigan's and Steak and Ale have been through the wringer over the past couple of decades, but these sister franchises are now poised for a big comeback. And they're going to do it together. Both chains were created by Norman Brinker, and over the years the two have been bundled together in multiple corporate acquisitions. But disaster struck in 2008 when parent company S&A Restaurant Corp. declared bankruptcy. Steak and Ale completely shut down all locations; all corporate-owned Bennigan's locations also closed, but the chain limped on thanks to the remaining franchised locations.

That would normally have been the end of the story. But in 2015, Paul and Gwen Mangiamele bought the two chains with the express purpose of staging an unlikely comeback. It took almost a decade more, but in 2024, the first new Steak and Ale opened, 16 years after the chain had closed seemingly forever.

2026 marks the 50th anniversary of Bennigan's and the 60th anniversary of Steak and Ale, and the two chains have big plans to celebrate. Steak and Ale announced plans to expand into Texas and South Carolina, while Bennigan's has inked deals for over a hundred new locations in the United States, India, and beyond. Welcome back!

In 2025, after two years of incredible expansion — including adding an average of roughly one new location every single day in fiscal 2025 — Wingstop hit a major roadblock, with sales actually declining in existing stores. In February 2025, stock prices for Wingstop suddenly dropped more than 20%. 

But while some companies might become a little gun-shy, Wingstop is going full speed ahead. Wingstop CEO Michael Skipworth said that they are aggressively expanding overseas, with India in particular seen as a potential chicken wing goldmine that could end up with as many as 1000 Wingstop locations in the future. "Our international success shows the strength of the brand and the significant global runway still ahead," he said (via Watt Poultry). "We continue to expand our global restaurant count towards our goal of over 10,000 restaurants."

Closer to home, the chain is focusing on high tech advancements to reduce order time and thus increase profits. Wingstop has so far rolled out the Smart Kitchen, which uses AI to boost efficiency, to over 2,000 locations. And the chain has introduced its first loyalty program, Club Wingstop, to keep customers coming back — which may lead to a comeback for the chain as well.

The COVID-19 pandemic dealt a devastating blow to the restaurant industry, and one of the most high-profile restaurant chains impacted was Sweet Tomatoes. When parent company Garden Fresh Restaurants declared bankruptcy in 2020, both Sweet Tomatoes and its sister chain Souplantation were completely shut down.

But not all endings are forever. In 2024, Sweet Tomatoes surprised fans by reopening a single location in Tucson, Arizona. This was promised to be just the start of bigger things to come, and in December 2025, the next phase was announced in the form of a second Sweet Tomatoes location, this time in Fort Myers, Florida. Sweet Tomatoes' Director of Corporate Affairs Marlee Lossing told The U.S. Sun the expansion was made possible by the success of the Arizona relaunch, saying, "We are thrilled to be opening a second location so that even more guests can enjoy Sweet Tomatoes once again!"

The Sweet Tomatoes store in Fort Myers is a true comeback story; rather than a new location, the chain is resurrecting one of its old locations from before the company's collapse. The restaurant will even be housed in the same building. That appears to be part of the chain's strategy: Rather than bringing in new franchisees, Sweet Tomatoes is looking to keep costs down by potentially expanding back into former locations with pre-existing infrastructures and customer bases. We're excited to see the next development.

Just a few years ago, Bojangles was struggling with a number of issues. The popular Southern fast casual restaurant chain had to close a number of underperforming locations in 2018 due to declining sales. Just two years later, the COVID-19 pandemic caused major disruptions, with some employees going on strike to protest how the company was handling the global event.

But 2025 proved to be a watershed year for Bojangles. After opening 43 new locations across the country, the chain is up to 864 total — a huge increase from the 622 restaurants it had just a decade before. And the powers that be at Bojangles are planning to use this momentum to springboard into 2026, with even more expansion on the docket. In September 2025, the company announced development deals to bring 20 new locations to Brooklyn, and another 30 or more in New Jersey.

The company's CEO, Jose Armario, told NRN that the chain aimed to hit 1000 locations by 2031, expanding their footprint from 21 states to 31 in the process. "As we've grown [to new places], it's amazing how many people already know who we are and run to our restaurants," he said. "Our new restaurant openings have broken so many sales records the few years of openings outside of our fortress market. We can continue to build on that."