CLOSURES have been hitting the restaurant industry hard in 2025 already, with the likes of Jack In the Box, Applebee’s and Denny’s dominating the list of shut downs.
The sector has been hit with similar problems as of late, and it’s something many have struggled to get past.
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Some of the factors, like the changing spending habits of consumers, are not in the control of the restaurants themselves.
OUT OF THE BOX
One of the most heavily impacted has been Jack In the Box.
The chain has confirmed it will shut down 200 locations as part of sweeping measures to reset its debt.
Closures are set to rollout in phases, with 80 to 120 spots confirmed to shut by the end of 2025.
The chain is currently undertaking a new initiative “JACK on Track”, aimed at improving operations.
CEO Lance Tucker, who took the helm on March 31, said: “Our actions today focus on three main areas.
“Addressing our balance sheet, closing underperforming restaurants, and returning to simplicity,” he said.
To get around its financial issues, the company is aiming to become a leaner machine than ever before.
Jack In the Box also plans to reduce spending on new company-owned restaurant development starting in 2026.
ROTTEN APPLE
The US Sun has also reported on the current state of Applebee’s, and the lengths its going to in the face of bankruptcy.
The CEO of the chain has revealed plans to overhaul 30 restaurants to prevent further losses.
Applebee’s has already shuttered 150 locations.
The chain has launched its own initiative the “Lookin’ Good” plan, a multi-year vision to refine every remaining Applebee’s spot.
It begins with 30 of the 47 Applebee’s that Dine took over last November.
The 30 remodeled units will be refranchised once complete.
A further five will be transformed into dual Applebee’s and IHOP locations.
CEO John Peyton said: “Six of our top 10 franchisees, representing 57% of the Applebee’s system, have already elected to accelerate remodels of their restaurants by the end of 2025 based on the Lookin’ Good program.
“The dual brand concept is now a core pillar of our development strategy, and we’re optimistic about the long-term upside potential.
“On average, we’ve seen these locations achieve 1.5 to 2 times the revenue compared to a single brand restaurant.”
Applebee’s has struggled in recent years, going from 1,578 stores in 2021 to 1,501 in 2024.
DENNY’S MAKES A DENT
Despite the amount of closures Denny’s has faced, the chain is still pushing forward.
Denny’s plans to close its underperforming restaurants, and has already closed half the ones it wants to this year.
The chain plans to shut 150 by the end of the year.
CFO Robert Verostek said during a Wednesday earnings call: “When restaurants have been open that long, it is natural that trade areas can shift over time.
“Accelerating the closure of lower volume restaurants will improve franchisee cash flow and allow them to reinvest into traffic driving initiatives like our tested and proven remodel program.”
BRANDS HARD HIT BY BANKRUPTCIES
Many chains have struggled to adapt to a post-Covid retail landscape, with several companies filing for bankruptcy
It brings the number of Denny’s closed or planned to close up to 180 since 2024.
But Denny’s is still opening new spots, with 20 more expected this year according to the CEO.
The chain is also focusing on remodeling branches, with an estimated $250,000 required for each one.
CEO Kelli Valade added: “This program is a catalyst for increasing same-restaurant sales, generating incremental traffic and driving profitability to our system and is a key component of achieving our long-term goal of $2.2 million AUVs for the Denny’s brand.”
OTHER CLOSURES
Sadly, these three aren’t the only major chains being hit with closures right now.
Eat This, Not That reports on even more, including the likes of Subway, KFC and Del Taco.
Subway quietly closed more than 600 locations in 2024, and has lost approximately 7,600 stores over the past nine years.
A Subway spokesperson said: “With nearly 37,000 locations worldwide, our focus remains on ‘Smart Growth.’
“In the U.S., we are optimizing our footprint using a strategic, data-driven approach to ensure restaurants are in the right location, image and format and operated by the right franchisees.”
Meanwhile, KFC and Del Taco have been struggling.
KFC filed for bankruptcy in 2024 and Del Taco close down all but one location in Colorado in March.
This account for 18 total locations.
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