11 Restaurant Chains That Are On The Brink In 2024

Get ready for a longer wait at the drive-thru. America’s beloved fast food scene is facing a wave of closures, with several chains shutting down locations in different parts of the country. From classic burger joints to regional favorites and casual dining staples, these closures signal a potential shift in the industry.

Key takeaways:

• Popular fast food chains like Hardee’s, PDQ, Bojangles, Popeyes, and Dairy Queen are closing locations across the US.
• Rising food costs and staffing shortages are crippling the industry.
• The closures come after years of pandemic-related struggles for restaurants.

Fast food has long been a cornerstone of American culture, a reliable and affordable source of burgers, fries, and sugary drinks. But in 2024, the industry appears to be on shaky ground. Major chains are shuttering locations at an alarming rate, leaving a growing number of communities without their favorite fried food staples.

According to several reports, the culprit behind the closures is a brutal combination of rising food costs and staffing shortages. The COVID-19 pandemic significantly disrupted supply chains, and the ripple effects are still being felt today. The cost of ingredients like meat, cheese, and cooking oils has skyrocketed, squeezing profit margins for restaurants.

Here are 11 restaurant and fast food chains that have recently closed locations:

• Hardee’s: This Southern staple has seen closures in Tennessee, Missouri, and Illinois, adding to previous shutdowns in other states. Financial troubles are a major factor, with the chain’s parent company facing bankruptcy. over 39 locations have shut down across 8 states and with more to close.
• PDQ: This fast-casual chain specializing in chicken tenders said goodbye to eight restaurants across North and South Carolina. Rising costs and changing market conditions were cited as reasons.
• Rubio’s Coastal Grill: California took a big hit with the abrupt closure of 48 Rubio’s locations. The chain blamed the high cost of doing business in the state, particularly the recent minimum wage increase.
• Chili’s: This iconic sit-down chain known for its fajitas and burgers has closed several locations across the US in an effort to streamline operations and focus on profitable locations.
• Outback Steakhouse: Another casual dining casualty, Outback Steakhouse has seen closures as the company re-evaluates its footprint and adjusts to changing consumer preferences. Parent company, Bloomin’ Brands, including Carrabba’s Italian Grill, Bonefish Grill, Fleming’s and Outback Steakhouse – closed 41 “underperforming” restaurants across its brands. They cite poor sales, and lower customer traffic as reasons behind the closures.
• Red Lobster: Seafood lovers may have a harder time finding their favorite chain restaurant, with Red Lobster facing closures and a bankruptcy due to a decline in sales. Last month they closed over 100 restaurants and reports say there are an additional 135 restaurants about to shutter.
• Bojangles’: This Southern favorite known for its fried chicken and biscuits has closed some locations, particularly in areas with high competition.
• Popeyes: Even the wildly popular Popeyes isn’t immune, with some locations shutting down due to operational challenges.
• Cracker Barrel: This country-themed chain known for its comfort food and homestyle atmosphere has closed a few locations, potentially due to a decline in popularity of sit-down dining experiences. The chain is attempting a transformation to get with the times by injecting $700 million into a makeover and updating the menu.
• Applebee’s: Another casual dining chain facing struggles, Applebee’s has closed additional locations in 2024, adding to closures in previous years. The chain is exploring initiatives like co-branded restaurants to stay afloat.
• Boston Market: This rotisserie chicken specialist has been hit, possibly the hardest. It had 300 locations in 2023 and that number may be down to as low as 20…maybe even less than that right now. A number of

Why the Closures?

The reasons behind these closures are complex, but a common thread seems to be rising costs. From expensive ingredients to increased labor costs, restaurants are struggling to maintain profit margins. The COVID-19 pandemic’s lingering effects on supply chains and labor shortages further complicate the situation.

Beyond the Bottom Line: What Does This Mean?

These closures have a ripple effect. Consumers lose convenient and affordable meal options, potentially leading to higher prices at remaining locations. Workers face job insecurity, particularly those in already low-paying food service jobs.

But the impact goes deeper. Fast food restaurants and casual dining chains have been a part of American culture, offering familiar comfort food and a place to gather. Their decline could subtly change how we interact and socialize.

Is This the End of Fast Food?

The answer isn’t clear. While the closures are a worrying sign, the industry is known for its adaptability. Innovation and a focus on value could help chains weather the storm.

The future of fast food might involve a smaller footprint, with a focus on drive-thru, online ordering, and automation to address labor shortages. Perhaps healthier options and a more sustainable approach will be key to attracting customers.

For consumers, it means fewer options for quick and affordable meals. It could also lead to higher prices at the remaining fast food restaurants, as they attempt to offset their rising costs. For workers, the closures represent a loss of jobs and income. The fast food industry has traditionally been a source of entry-level employment, particularly for young people. The current climate makes it more difficult for these individuals to find work.

But beyond the immediate economic effects, the decline of fast food also raises questions about the future of American culture. Fast food restaurants have long been a part of the American social fabric, serving as gathering places for families and friends. Their disappearance could have a subtle but profound impact on the way we live and interact with each other.

So, is the American fast food industry on the brink of collapse? It’s too early to say for sure. But the current wave of closures is a worrying sign. The industry needs to find a way to adapt to the new economic realities or risk becoming a relic of the past.

What do you think? Are you concerned about the future of fast food? Share your thoughts in the comments below!