Restaurant Closures in 2025: Starbucks and Wendy’s Shutter Locations

As the restaurant industry has endured another difficult year, many chains have chosen to close underperforming establishments in an attempt to turn around their business.

Inflation-weary consumers have cut back on restaurant spending, opting to eat at home or hunt for deals when going out for a meal. Although some restaurants have won over reluctant customers, the sector has largely struggled with declining sales. Traffic to restaurants open at least a year declined every month in 2025 except July, according to Black Box Intelligence.

In years past, restaurant closures have been more concentrated in casual dining chains, which have lost customers to fast-food competitors like Chipotle. But this year, industry chains have announced plans to close at least hundreds of locations.

In such a difficult environment, some catering companies have even filed for bankruptcy protection. Hooters, Pinstripes and On the Border were some of the notable names that landed in bankruptcy court this year.

Here are the chains that have announced closures in 2025:

In September, the coffee giant announced a billion-dollar restructuring plan that included closing about 500 of its North American locations. The closures even extended to the shuttering of its upscale Reserve Roastery coffee shop in Seattle, the company’s hometown.

Starbucks The announcement follows CEO Brian Niccol’s first anniversary at the helm of the company. Under his leadership, Starbucks is trying to reverse declining sales in the United States, its largest market.

Executives plan to share more details about the turnaround at the company’s upcoming investor day in late January in New York.

In November, Wendy’s announced it would conduct a strategic review of its restaurant footprint and begin closing underperforming locations that quarter. While the company hasn’t announced a specific number of closures, interim CEO and CFO Ken Cook told analysts the company could close a “mid-single-digit percentage” of its U.S. restaurant closures, which would mean hundreds of the burger chain’s locations.

The closures are one phase of Wendy’s “Project Fresh” recovery plan. The company reported a decline in same-store sales, even as a rival. McDonald’s And Burger King are seeing higher demand for their Big Macs and Whoppers.

In 2024, Wendy’s will close approximately 140 locations.

In February, Danny said it plans to close between 70 and 90 restaurants in 2025. In recent months, the restaurant chain’s sales have fallen as customers choose to go to cheaper fast food restaurants for breakfast. This change in behavior led the company to close its underperforming locations and attempt to improve the rest of its restaurant footprint.

In November, the chain announced it sold for $620 million to Yadav Enterprises, TriArtisan Capital Advisors and Treville Capital Group. The deal is expected to close in the first quarter of 2026, subject to regulatory approval.

In April, Jack in the Box announced it would close between 150 and 200 restaurants as part of its “Jack on Track” strategy to improve its financial performance. By the end of its 2025 fiscal year on September 28, the chain had permanently closed 86 restaurants.

In May, parent company Bahama Breeze Darden Restaurants has closed 15 of the chain’s locations, representing about a third of its overall footprint.

Following the closures, executives decided the Caribbean-inspired chain was not a strategic priority for Darden. The company is therefore exploring strategic alternatives for the brand. Options include selling the chain outright or converting its restaurants to other Darden brands, such as Olive Garden. Darden expects to make a decision on Bahama Breeze by the end of its 2026 fiscal year, which ends in May.

Dozens of Hardee’s locations will close by the end of the year after the franchisor sued ARC Burger, one of its largest franchisees. Hardee’s alleges the operator fell behind on payments such as royalties, rent and taxes.

ARC, which is owned by private equity firm High Bluff Capital Partners, operated 77 Hardee’s restaurants before the legal battle began. Its footprint spans eight states, including Alabama, Florida, Georgia, Illinois, Missouri, Montana, South Carolina and Wyoming, according to legal documents.

During the first three quarters of 2025, Papa John’s has closed 173 restaurants worldwide, according to company filings. Most of the closures affected international locations, although 62 of the pizza chain’s U.S. locations also closed.

Despite the closures, Papa John’s still had nearly 6,000 restaurants in operation at the end of September.

At the end of October, Noodles & Co. has closed 29 company-owned restaurants this year, and executives said they plan to close two to five more underperforming establishments by the end of 2025.

In 2024, the fast-casual chain closed 20 locations.

By the end of 2026, Noodles & Co. plans to close 12 to 17 additional stores, aiming to improve the company’s financial performance and boost sales at stores near the chain.

In October, catering business Bloomin’ Brands closed 21 locations companywide. The closures affected Outback Steakhouse, the crown jewel of its portfolio, as well as Bonefish Grill and Carrabba’s Italian Grill.

Bloomin’ has identified nearly two dozen other restaurants that will not renew their leases when they expire over the next four years, executives said in November when sharing the company’s quarterly results. At the same time, the company announced a $75 million turnaround plan to improve Bloomin’ sales and its overall financial health.