2025 restaurant closures: Starbucks, Wendy’s shutter locations

The restaurant industry has faced significant challenges in 2025, with many chains opting to close underperforming locations in an effort to turn their businesses around. Inflation-weary consumers have been eating at home more often or seeking out deals when they do go out for a meal, leading to a sales slump for the industry as a whole. According to Black Box Intelligence, traffic to restaurants that have been open for at least a year has fallen every month in 2025, with the exception of July.

Restaurant Closures

In the past, casual-dining chains have been more likely to close locations, with customers flocking to fast-casual competitors like Chipotle. However, in 2025, chains across the industry have announced plans to shutter hundreds of locations. Some restaurant companies have even filed for bankruptcy protection, including Hooters, Pinstripes, and On the Border.

Notable Closures

Several well-known chains have announced closures in 2025, including Starbucks, which plans to close roughly 500 of its North American locations as part of a $1 billion restructuring plan. Wendy’s has also announced plans to close underperforming locations, with the potential for hundreds of closures. Denny’s has said it will close between 70 and 90 restaurants, while Jack in the Box plans to close between 150 and 200 locations.

Strategic Restructuring

Many of these closures are part of larger strategic restructuring plans, as companies aim to improve their financial performance and boost sales. For example, Starbucks’ closure plan is part of an effort to reverse a sales slump in the US, its biggest market. Wendy’s “Project Fresh” turnaround plan includes closing underperforming locations, while Denny’s is attempting to improve its restaurant footprint and shift its focus to more profitable locations.

Other Chains Affected

Other chains that have announced closures in 2025 include Bahama Breeze, which closed 15 locations, and Hardee’s, which will close dozens of locations due to a legal dispute with one of its franchisees. Papa John’s has shuttered 173 restaurants worldwide, while Noodles & Co. has closed 29 company-owned restaurants and plans to close more in the coming years. Outback Steakhouse has also closed 21 locations, as part of a larger restructuring plan by its parent company, Bloomin’ Brands.

Industry Outlook

The restaurant industry is likely to continue facing challenges in the coming years, as consumers remain cautious about spending and the economic landscape remains uncertain. However, by restructuring and refocusing their efforts, many chains are hoping to emerge stronger and more resilient in the long term. As the industry continues to evolve, it will be important for companies to stay adaptable and responsive to changing consumer needs and preferences.