Goodbye to these 3 famous fast food chains: massive closures in the U.S.

The restaurant sector in the United States is going through difficult times. Many iconic establishments are closing their doors permanently. The reasons behind these decisions are varied and reflect a complicated economic environment.

Among the chains that have been most impacted in recent months are Hooters, Red Robin, and Denny’s. These brands have announced the closure of numerous locations due to issues such as staff shortages, rising labor costs, and ongoing inflation in the country. According to experts, mid-range restaurants are facing the greatest challenges in this context.

Hooters, Red Robin, and Denny’s: the end of an era

Hooters surprised its customers in March after filing for bankruptcy to manage a debt of $376 million. The chain argued that declining consumer spending and rising costs forced them to take this step. In June, they closed 30 of their locations in several states, part of a restructuring plan that aims to ensure their long-term survival.

A Hooters spokesperson described this decision as "difficult" but assured that the company will continue to operate under a purely franchised model. "Optimizing our business is key to keeping Hooters's iconic legacy," he added, while also showing his commitment to affected employees and thanking customers for their loyalty. The chain is seeking to adapt in order to remain relevant despite current difficulties.

Red Robin has also announced the closure of approximately 70 restaurants, with 10 to 15 closures scheduled for this year, The Sun reveals. In a call with investors at the end of 2024, CEO GJ Hart explained that these measures will help pay off debts and reinvest in the locations that remain open. The chain, which operates nearly 500 restaurants in the United States and Canada, plans to renew its menu to attract more diners.

Denny’s and the revitalization strategy

Denny’s confirmed that they will close up to 90 restaurants before the end of the year, bringing the total number of closed locations since 2024 to 180. This decision is part of a plan to revitalize the brand and improve its profitability. According to Robert Verostek, Denny’s chief financial officer, these closures will allow them to improve cash flow and redirect investments toward the most profitable establishments.

Many of the closed locations have been operating for about 30 years (9.8 yd.), a natural cycle for mature brands. In addition, the company is evaluating and improving nearly 265 other restaurants to optimize their financial performance. Despite the closures, Denny’s expects to open up to 40 new establishments in the coming months.

Verostek himself pointed out that sales suffered a sharp drop at the beginning of the year, reflecting the uncertainty consumers are experiencing. This situation is not exclusive to these three chains. Other franchises such as Red Lobster, TGI Friday’s, Applebee’s, and Noodles & Company have also announced significant closures to face the complex reality of the American restaurant market.