Popular Restaurant Chains Are Shutting Down Locations In 2026

The chain restaurant business is not for the faint of heart. Not only do these companies typically operate on thin budgets, but owners and operators also experience high food costs, staffing issues, high turnover, increasing rents, and consistency concerns across multiple locations. Plus, each time a new location opens, it's at risk for closure, with experts estimating that only 20% of all restaurants experience success and 80% fail within five years. That's why it shouldn't be surprising when a local establishment shuts its doors. Sometimes it's just too costly to remain open.

Still, some industry data suggests that while restaurants close every year, the situation may not be as dire as it seems. In 2025, restaurant closures were at an all-time low, with 82% fewer than in 2018. And while a closed restaurant can be frustrating for a community, sometimes it's necessary. Some chain restaurants have to become leaner in order to become competitive again, which seems to be the theme with many of the restaurant closings you can expect to see in 2026. Here are 13 restaurants that are trimming down this year and closing locations across the country.

Wendy's, which was founded in 1969, is a fast-food chain known for its iconic square burgers and Frosty desserts. But its sales have not been growing as the company would like. In November 2025, Wendy's reported sales of roughly $3.5 billion, which represents a decrease of 2.6%. Shrinking sales may be part of the reason why Wendy's consequently announcedit would be closing a small percentage of its more than 6,000 restaurants, targeting those consistently not doing well.

In fact, Ken Cook, the interim CEO of Wendy's, noted that there would be improvements to some restaurants, including factors such as customer experience and equipment. In other cases, it will transfer ownership to a different operator or close the restaurant altogether. As for customer opinions? Many believe the prices and food quality have impacted the Wendy's in their communities. 

One Reddit user said: "The issue is it's priced the same as a Chili's or Applebee's or Texas Roadhouse burger now. I live in one of the highest cost of living areas in the country, and yet Applebee's offers a $9.99 burger fries and drink combo and [it's] a huge diner burger. That's $2 cheaper than Wendy's $12 Dave's Single combo."

Noodles & Company is a fast-casual restaurant chain that specializes in preparing made-to-order noodle dishes. Some customer favorites include the creamy cheddar mac & cheese and Japanese Pan Noodles. But after struggling in some areas of the country, the chain is closing underperforming restaurants as a way to refocus and rebuild. This new direction began in 2025 after closing 33 company-owned restaurants and nine franchise restaurants. It has since announced plans to close between 30 and 35 additional restaurants across the United States in 2026. 

Joe Christina, the company's chief executive officer and president, told investors the goal is to focus on the restaurants with the strongest opportunity to do well. He also speculated that closing the initial 30+ restaurants helped the company achieve an increase of 6.6% in "system-wide comparable sales" in the fourth quarter of 2025, and that he felt confident the additional closings would turn things around. "As we head into 2026, we are energized by the progress we are making and confident in our plan to develop winning teams, drive guest satisfaction, ignite growth, and deliver improved financial results," said Christina.

Long-time customers and employees have mixed reviews about the closings. Some Reddit users feel they are long overdue, while others are deeply disappointed. In fact, one Reddit user said: "I'm very mad; it ruined my day when I found out."

Known for its "Damn Good" tacos, hand-pressed tortillas, and specialty queso, Torchy's Tacos is a customer favorite in many areas. In fact, one Reddit user declared: "Torchy's Tacos is the best tasting, non-authentic, American tacos franchise you'll find." Yet, despite the restaurant's popularity, its sales have been struggling, and the company is planning to close a handful of its lesser-performing restaurants, according to industry experts.

In 2025, the company reportedly closed six restaurants and has plans to close another seven as early as February 2026. Industry officials indicate that this will leave the Austin-based restaurant chain with 120 restaurants across 16 states. The company's goal with these closings is to zero in on the restaurants in its high-performing markets and improve customer experience. "We're confident these moves will put us in the strongest position for sustainable growth moving forward," the company said in a statement to Restaurant Business.

Meanwhile, customers on Reddit don't seem too surprised that some of their local Torchy's establishments are closing, noting that the quality and service have gone down since it entered the market. As one customer put it: "We fell in love with them when they opened the Sawmill location ... But they've gone downhill fast. Every single time we order, something is wrong with the order. And reporting it doesn't do anything. It's a shame but not a surprise either."

Joe's Crab Shack is a beach-themed, come-as-you-are, casual seafood chain that at one time had more than 150 locations nationwide. But in recent years, it has rapidly closed locations across the country. The Jacksonville Beach, Florida, location was the first closure in 2026. Bubba Gump Shrimp Co, which is owned by the same company, Landry's Dining and Hospitality, will take over the space. Reddit users were surprised that the location closed, since it was always packed. 

According to industry experts, closures have been a common theme among seafood restaurants in the United States over the last few years. Not only did Red Lobster recently file for bankruptcy, but other brands within this market segment have also experienced challenges, and Joe's Crab Shack was not immune. In fact, Nation's Restaurant News reported in May 2025 that the once-popular spot saw sales plummet by 27.5%. That's a huge hit to any restaurant chain.

As for how many more restaurants Landry's will close in 2026, it is purely speculation at this point — the company has not made an official announcement. But as of February 2026, Joe's Crab Shack only had 14 restaurant locations remaining on its website. 

Founded by Alfred Peet in 1966 in Berkeley, California, Peet's Coffee has grown into a premier spot. Known for its sustainably-sourced coffee beans and its commitment to rich-tasting, roasted coffee, Peet's has become a staple in many communities. But like many chain establishments, it has struggled to ensure every one of its multiple locations is profitable. Consequently, it's quietly closing a number of its coffee bars.

While the company has not specifically announced which locations are closing, there are several reports of locations shuttered in San Francisco, Los Angeles, and Evanston, Illinois. Most regular customers and some staff members were surprised by the closings. In fact, one Reddit user felt the specific locations had decent foot traffic, with no local reports they were struggling. Meanwhile, another Reddit poster said: "We are devastated that the Peets is closing. It's a place for small groups to get together and have meetings over coffee and pastries and they always seem pretty busy especially with takeout."

In a statement sent to Nation's Restaurant News about January 2026 closures, a company spokesperson said Peet's is adjusting to the current coffee market and focusing on growth opportunities. "As we move forward, we remain dedicated to the quality, craftsmanship, and heritage that have defined Peet's for the past 60 years, while embracing new opportunities to innovate and grow," the statement said.

Denny's is a popular table-service, casual dining chain with a diner-like vibe throughout. With more than 1,650 locations worldwide, this casual chain has made its mark among restaurants offering country-style breakfasts like biscuits and gravy and ham and eggs. But, in recent years, it has undergone some financial challenges that have led to restructuring and restaurant closings.

These changes began in 2025 when the company closed around 100 restaurants, with more planned to close in 2026. Denny's management hasn't made an official announcement as to how many locations will be closing this year, but to date, closures have occurred without warning in Grand Rapids and Kalamazoo, Michigan, and another in Midland, Texas.

Additional changes may occur later this year. The company has been acquired by TriArtisan Capital, Yadav Enterprises, and Treville Capital in a $620 million deal that was finalized in January, and CEO Kelli Valade will step down in February. These sudden changes and closings have affected customers differently. One Reddit user said he will miss Denny's because it allowed his pregnant wife to get breakfast anytime she had a craving, while he could get a burger. But another Reddit user said, "They got way too expensive. You can get better food [at] the same price or cheaper elsewhere."

Founded in 1951, Jack in the Box is a fast-food chain with an extensive menu and service 18 to 24 hours a day at its over 2,200 locations. In addition to burgers and iconic curly fries, this fast food mainstay also offers tacos, milkshakes, and chicken sandwiches. But it also has had its fair share of challenges, forcing the company to unveil its "Jack on Track" strategy in 2025 to turn around its performance and improve the bottom line.

While there are several different facets to the plan, the restaurant announced that it plans to close 150 to 200 restaurants, as well as sell its Del Taco brand. Consequently, 80 to 120 stores were scheduled to close between April 2025 and the end of that year, while the rest will likely occur in 2026, though a timeframe and exact locations were not specifically identified. These closures also don't include the company's ongoing annual closure rate of 1% that also begins in 2026.

One franchise owner in the Tucson, Arizona, area noted on Reddit that they had to close four restaurants due to expiring franchise agreements and unfeasible ADA-compliant renovations. Meanwhile, customers on Reddit generally agree that the food quality is somewhat lacking, but this doesn't mean there isn't sadness over the closings. A Reddit user in Tucson said, "We in the area will miss this location dearly! Was my go to lunch spot for the last 5 years."

Smokey Bones is a casual dining chain that features a bar and fire grill and specializes in barbecue over an open flame. On the menu, customers can find everything from ribs and steaks to handhelds, burgers, and more. Yet, like many casual dining chains, it has experienced less than stellar growth and filed for Chapter 11 bankruptcy in early 2026. This has led the company to shut down more than 100 Smokey Bones restaurants so far.

Depending on how the bankruptcy plays out, industry experts speculate that the chain could shut down altogether. This could mean closing all Smokey Bones locations or converting them to Twin Peaks Lodges, which are also owned by the parent company, Twin Hospitality Group. To date, there are only 20 Smokey Bones locations left in the U.S.

Meanwhile, Reddit users are not surprised by the closing and note that some locations are often near empty. That said, some will miss the establishment and hope that something new moves into the space. One Reddit user wrote: "I will miss it only because they were doing a two for one brisket special on Thursdays."

Houlihan's is a casual dining restaurant and bar that was once thriving. But already this year, the chain has closed two restaurants — one in Noblesville, Indiana, and one in Savannah, Georgia — often with little warning to the community and the employees. In fact, the restaurant closure in Savannah had some Reddit users up in arms because the employees were working one day and unemployed the next.

Industry experts indicate that the restaurant chain, which got its start in 1972, had as many as 140 locations at its peak, but as of February 2026, it has only 22 locations listed on its website. Much of this may be related to the fact that the company has filed for bankruptcy on multiple occasions. Consequently, more than 55% of its restaurants have closed between 2019 and 2024, according to the Nation's Restaurant News.

And according to some Reddit users, these closures make sense in many ways. One user said, "I've always assumed once you become an 'early bird, older crowd' spot, your time is ticking." Meanwhile, another Reddit user said they liked going to Houlihan's because they could always get in on a Friday night — which could explain why that particular location is no longer open.

Widely known for its multiple cheesecakes, The Cheesecake Factory is a casual dining chain that features a broad menu. The restaurant officially got its start in 1972, when Evelyn Overton and her husband opened The Cheesecake Factory Bakery in Los Angeles (though she had been baking for local restaurants since the 1940s). Since then, the restaurant became a popular spot to have lunch or dinner — and enjoy cheesecake.

But in recent years, The Cheesecake Factory has not been quite so successful in some markets. And at the beginning of 2026, it began quietly closing restaurants. On January 24, 2026, the restaurant closed three locations, including one in Baltimore, Maryland, and one in Friendship Heights, DC. It also closed its Grand Lux Cafe in Houston, Texas, which is operated by The Cheesecake Factory.

The restaurant chain has not officially announced if there will be additional closings, though, already in 2022, people on Reddit speculated the brand would close for good. Meanwhile, Redditors are mourning the loss of a favorite gathering place. "This was our go to anniversary and Valentines [Day] spot for literally decades I literally don't know where we will go for that now."

Hardee's is a popular fast food chain that was founded in 1960 by Wilber Hardee. The chain is known for its scratch-made biscuits and hand-battered chicken tenders, as well as its unique burgers and fries. But a recent lawsuit filed against franchisee ARC Burger, due to missing payments in 2024 for royalties, training fees, rent, taxes, and more, has resulted in numerous Hardee's locations closing in 2026.

In fact, ARC Burger shuttered the doors of as many as 77 or more Hardee's locations in Alabama, Florida, Georgia, Illinois, Missouri, Montana, South Carolina, and Wyoming in January 2026. However, some industry experts indicate that Hardee's could reopen some of the closed restaurants once the lawsuit is settled.

As for whether more Hardee's locations could close in 2026, there has been no official announcement. But the company has been closing up shop in a number of communities for the past few years. In 2023, it closed at least 40 locations due to a bankruptcy by one of the franchisees, and in 2024, the company closed at least eight restaurants. Then, in 2025, locations in seven cities were shut down.

Red Robin is a casual dining burger chain that's home to the infamous bottomless fries. And while the restaurant has a base of loyal followers — particularly those who enjoy the gluten-free bun — it has also hopped on and off the struggle bus for the last few years. For instance, the restaurant announced that it was considering closing 70 restaurants in 2025 to help curtail some of its losses. But then, the implementation of the company's Big YUMMM program, its version of a value meal for $9.99, seemed to turn things around. This news found the restaurant walking back its plans to close so many locations. 

However, by the beginning of 2026, Red Robin was suddenly closing restaurants again, often without warning. In January, it closed the Orland Park, Illinois, and the Clifton, New Jersey, locations. The Red Robin in Folsom, California, located at the Palladio Shopping Center, also closed in 2026, as part of the shopping center's "refresh" and not part of a bigger Red Robin plan. The company has not announced if additional restaurants will be closed in 2026.

As expected, these closings have some patrons singing the blues. One Reddit user was particularly disappointed because Red Robin is one of the few chains where customers can get a celiac-safe, gluten-free meal complete with a basket of bottomless, gluten-free fries. "As someone who lives with a person with celiac, I'm a little bit bummed by this news."

Bloomin' Brands is the parent company of casual dining restaurants Outback Steakhouse, Carrabba's Italian Grill, and Bonefish Grill. Founded in 1988 in Tampa, Florida, this is one of the largest companies of its type, with about 1,450 restaurants. Yet, despite its size, the business is closing some of its locations this year.

Beginning in 2025, the company closed 21 restaurants across its three brands. It also announced plans to refrain from renewing leases for 22 additional restaurants starting in 2026 and continuing through 2030. However, the company hasn't specifically indicated where and when these closures will take place.

Overall, customers are sad to see these brands leave their communities. As one Reddit user said about Outback, "I ate there monthly as a tradition with my family after I left for college. We recently started taking my boys, and they loved it. I'm not saying it's the highest quality, but man my family enjoyed a lot of meals there. RIP."