Ever since the 2008 financial crisis, we have seen restaurant chains closing their doors left and right. A number of companies have filed for bankruptcy in recent years, with many more selling their companies in hopes of leaving some money still left in their pockets. Unfortunately for us, that means some of our favorite go-to spots are leaving our towns and cities.
Where are we supposed to go for our favorite burgers and fries? Get your online petitions ready, because here is a list of some restaurant favorites that are starting to shut their doors.
It seems like everyone's crazy about this Mexican grill, but why is it on the list? Well, Chipotle is actually suffering from a large decline in sales, greatly due to various food safety issues the chain has encountered over the recent years.
One of the biggest issues they faced was the foodborne illness outbreak that started in their Ohio restaurant where nearly 700 people complained about having gastrointestinal problems, nausea, diarrhea, and fever after eating at the Chipotle restaurant.
With over 24,000 Subway stores open across America, last year, more than 1,100 stores were closed. Why?
The emergence of more competitors in the market and the rise of health-conscious customers. On the bright side, despite closing a thousand stores in 2019, Subway remains to be the only fast-food chain that has the most locations on the planet with more than 42,000 outlets in over 100 countries.
McCormick & Schmick's seafood and steak restaurant have closed almost one-third of its US restaurants. It all started in late 2011 when their revenues started to hit an all-time low.
Before getting bought off by another company, M&S had around 85 restaurants across the country, but now they only have 36 and about to shut down more locations this year. Total bummer.
This almost 40-year-old resto grill that offered a neighborhood pub feel to it with friendly service and great food at a lower price has one of the best mom-and-pop-store-turned-food-chain stories in the country. Customers, young and old, flocked to the doors of Applebee's for years, but then came the new generation with their more sophisticated tastebuds and need for a faster and easier dining experience.
Applebee's struggled to keep up.
How can one of the fast-food industry’s senior citizens keep up with the demands of the newer and younger generation? By keeping up with the needs and times and strengthening their order and delivery system. Pizza Hut announced that within the next two years, they would be closing around 500 dine-in stores nationwide and convert them into express huts which will focus on deliveries and take-outs.
“We are leaning in to accelerate the transition of our Pizza Hut U.S. asset base to truly modern delivery carryout assets,” said David W. Gibbs, president and chief operating and financial officer of Pizza Hut.
IHOP first opened in 1958 and was well-loved by the public until the wave of health consciousness hit the whole country.
Their loyal customers switched and made other breakfast choices, healthier ones, The company still tried to increase sales by doing different gimmicks and adding new items on their menu, but it still wasn't enough to pull IHOP from its slow decline, so the company's projected to close up 30-40 stores by the end of the year.
This pizza joint that started out around the Italian neighborhoods in Brooklyn in 1956 has grown into a big fast-food chain, frequently seen in food courts and malls.
Experts say that Sbarro’s decline was related to shopping malls going out of style because no one ever stays in malls long enough to eat at a food court anymore plus, the constant rise of pizza ingredients' prices was also a big factor.
Carrabba's Italian Grill is a family-owned business that started serving Italian dishes to the people of Houston, Texas in 1986.
Over the years, the Italian grill continued to be successful in the industry and even opened several stores overseas, but along with its expansion, they also had to shut down several low-earning branches.
Sales at Red Robin have been going downhill for several years now. They struggled with their revenues so much that they had to eliminate their restaurant busboys to lower their expenses.
Just like Sbarro, Red Robin branches were also frequently located at shopping malls and food courts, but now that the shopping mall craze is over, the company is slowly dying out.
Just like Subway, Quiznos Sub isn't doing very well these days. Well, they haven't been doing very well in terms of sales since the mid-2000s.
In 2007, they had more than 4,000 locations across America but 10 years later, they lost almost 90% of their stores leaving them with only around 400 stores. Quiznos continue to decline as they still plan to close some more stores this year.
Steak ‘n Shake has been on a store-closing roll since late 2017. Why? Apparently, the company has been struggling with profitability over the last few years.
“Since 2017, Steak ‘n Shake has experienced sales declines, which is the primary reason for Steak ‘n Shake’s lower profitability,” the company stated. Furthermore, they told the press that a way to solve this decline was by putting more focus and emphasis on their franchise partnership program. Last year they closed over 106 of their locations and they plan to close more this 2020.
Over the years, Papa John’s pizza has been very successful and opened up hundreds of franchise stores nationwide and abroad. But its sales have unfortunately declined over the past few years due to a controversy involving its former CEO, John Schnatter.
In 2018, the media revealed that Schnatter has apparently used the forbidden N-word during a conference call, which cost him his CEO position. The chain was also notorious for having a bad company culture that's why it has eventually led to them shutting a number of stores down.
Marie Callender and her famous pie are throwing in the towel. Even though her frozen pies are sold in grocery stores nationwide and seemingly doing well, her restaurants, on the other hand, are hanging on by a thread.
The chain already filed for bankruptcy and is planning to have around 19 more closures this year.
This all-American classic was the go-to place for families, young adults, and teens. It's the best place for birthday parties and big celebrations because they offer wide locations with festive interiors and average-priced, but savory meals perfect for big groups.TGI Friday's revenue loss is also due to the changing taste and preferences of Millennials and Gen Zs.
They prefer more quick-paced and to-go places that offer 24/7 deliveries.
One of the fast-food industry's giants, Burger King, is also closing some stores this 2020. This move, however, is a part of Burger King’s strategy to catch up with McDonald’s success.
President of Burger King in the Americas, Chris Finazzo, said: "Closing low-volume restaurants creates a virtual cycle of improved profitability." It’s sad to know that some of our favorite Burger King stores might be closing, but sacrifice comes with success.
Luby’s used to be a Texan favorite that you can find a store on almost every corner of the Texas state. But unfortunately, the Texan taste has changed and people seemed to veer away from deep-fried, fatty, and unhealthy food which describes almost everything on Luby’s menu.
The restaurant has been on a constant decline over the last few years so, it’s not surprising to know that they will continue to close down more locations this year.
Fuddruckers is owned by the same company that owns Luby, so obviously, business isn’t good for both chains.
The burger chain used to have 60 locations owned by Luby’s but now they only have 49 left with the possibility to even go lower this year.
Jack in the Box tried to compete with McDonald’s before but they never stood a chance. McDonald’s has always been the first choice of American children when it comes to fast-food. To make up for the lost sales in Jack in the Box, the owner acquired another restaurant called Qdoba, a Mexican joint.
Unfortunately for him, it was another chain down the drain. Business continues to look bad for Jack in the Box and it’s predicted that they will close 14 more stores this year.
Looks like the business hasn’t been friendly to Friendly’s as their former 500 locations across the country are now down to only 200. This Massachusetts-based family diner started out as an ice cream shop before they added burgers and other items on their menu.
Friendly’s CEO announced earlier last year that they will be closing down 23 more locations this year.