Major Restaurant Chain Closures in 2024: A Comprehensive Review of 13 Permanently Shut Down Venues

This article provides an in-depth analysis of 13 major restaurant chains that have closed multiple outlets across the U.S. in 2024. It discusses the reasons behind these closures, such as financial struggles, declining customer traffic, and operational challenges. The report highlights the impact on the restaurant industry and offers insights into the future prospects of these brands amidst ongoing economic pressures. Readers will gain a comprehensive understanding of how economic factors and changing consumer habits are shaping the landscape of the American dining scene in 2024.

Significant Restaurant Chain Closures Impacting the Food Industry

Over the past several months, the restaurant industry has witnessed an unprecedented wave of closures, with numerous well-known chains shutting down multiple locations across the United States. These closures have sparked concern among consumers, investors, and industry analysts alike, as they reflect broader economic challenges, shifting consumer preferences, and operational difficulties faced by many restaurant brands. This comprehensive overview aims to detail the most recent and notable closures, shedding light on the underlying causes and potential implications for the food and hospitality sectors.

Cracker Barrel
The beloved Southern-themed restaurant chain, Cracker Barrel, has experienced a decline in customer footfall, leading to a 4% reduction in revenue last fiscal year. This downturn prompted the brand to close several outlets in key markets such as Sacramento, California; Santa Maria, California; Medford, Oregon; and Columbia, California. The closures are attributed to decreased patronage, increased operational costs, and strategic realignments aimed at revitalizing the brand in core markets.

Applebee’s
As one of the most recognized casual dining chains in the U.S., Applebee’s has faced significant challenges in recent years. Over 300 locations have been shut down nationwide, with 46 closures recorded just last year. Anticipations for 2024 include an additional 25 to 35 restaurant closures, reflecting ongoing struggles with declining sales and shifting consumer habits. Nevertheless, Dine Brands, the parent company, is optimistic about the future, planning to introduce joint venues in partnership with IHOP in early 2025, aimed at rejuvenating the brand’s appeal and expanding its market reach.

Chili’s
The Tex-Mex favorite, Chili’s, has also faced closures due to underperformance and lease issues. This year, two outlets in Indiana and North Carolina were shuttered following unsatisfactory financial results and challenges with lease agreements. These closures illustrate the increasing pressure on traditional chain restaurants to adapt to fast-changing market dynamics and consumer preferences, which favor convenience and innovation over traditional dining experiences.

TGI Fridays
Known for its vibrant atmosphere and diverse menu, TGI Fridays announced the closure of 36 locations across 12 states. The closures stem from ongoing unprofitability and operational difficulties, especially in regions like New Jersey, California, Colorado, and Florida. The company's decision underscores the difficulties even established brands face in maintaining profitability amid fierce competition and rising labor and supply chain costs.

Denny’s
The iconic 24-hour diner chain, Denny’s, documented a significant number of closures last year with 57 outlets shutting down, largely due to inflation and rising operational costs. The company anticipates more closures in the current year as it seeks to streamline operations and focus on more profitable locations.

Boston Market
Once a leader in the rotisserie chicken segment, Boston Market has suffered financial setbacks and legal struggles, shrinking from over 300 restaurants to just 27 this year. Industry insiders speculate additional closures may occur as the company grapples with debt and declining sales. Limited contact options and ongoing legal issues add to the uncertainty surrounding the brand's future.

Mod Pizza
The fast-casual pizza chain Mod Pizza has closed over 27 outlets spanning California, Chicago, Philadelphia, and Dallas. The closures are part of a strategic repositioning intended to focus on core markets and improve operational efficiencies. Experts suggest that this shift may lead to revitalization, but it also indicates challenges in maintaining a broad geographic footprint in a competitive market.

PDQ Chicken
Famous for its chicken tenders and quick service, PDQ Chicken closed eight stores in North and South Carolina earlier this year, citing market challenges as the primary reason. Although more closures are yet to be confirmed, the move reflects broader economic pressures impacting quick-service restaurants in regional markets.

Outback Steakhouse
Despite optimistic financial reports from Bloomin’ Brands, the parent company, Outback Steakhouse experienced the closure of 41 restaurants. These closures are related to poor sales performance and location-specific issues. To counterbalance these setbacks, the company plans to open 18 new outlets in 2024, aiming to strengthen its footprint and appeal to steak lovers nationwide.

Hardee’s
The burger chain Hardee’s has shuttered several locations since last year, although specific reasons for these closures remain undisclosed. Industry analysts speculate that increased competition and operational costs could be contributing factors.

Tijuana Flats
The Florida-based Tex-Mex restaurant chain, Tijuana Flats, faced financial hardships culminating in filing for Chapter 11 bankruptcy in April. As a result, around 40 outlets were closed, with the company now owned by Flatheads LLC. Currently, Tijuana Flats operates approximately 65 company-owned and 26 franchise restaurants mainly in Florida, Alabama, and Tennessee, as it restructures and aims for a comeback.

In-N-Out Burger
Legendary for its quality and efficiency, In-N-Out Burger took a historic turn by closing its location near Oakland International Airport—the first closure in 76 years. The decision was driven by safety concerns related to rising crime rates in the area, emphasizing the growing challenges faced by even beloved brands in ensuring customer safety.

Bonefish Grill
The upscale seafood restaurant Bonefish Grill recently closed its doors in Secaucus, New Jersey. Owned by Bloomin’ Brands, the company maintains over 160 locations nationwide, with no recent plans for additional closures like Fleming’s Prime Steakhouse, another of their brands. This closure marks a minor yet significant shift in the upscale dining segment’s landscape.

For localized and real-time updates on restaurant closures, consumers are encouraged to perform quick online searches using terms like “closing restaurants near me” to access current information about specific shutdowns and reopening plans in their areas.