Trying to comeback from covid 19, economist for the Biden administrations promised a decade of the “roaring 20’s” for those coming out of the out of the pandemic.
But after trillions of dollars pumped into the American economy, restaurants have had a tough time of making a go of it. From 2023 through 2024 a multitude of well-known establishments have either closed locations or filed for bankruptcy.
I don’t know about you guys, but I’m ready for ’24 to be behind us, and I think ‘25 is going to be a great year,” said Kate Jaspon, CFO of Dunkin’ parent Inspire Brands.
In 2024, restaurant bankruptcy filings have jumped by over 50%, consumer traffic has dropped off and store sales have declined.
Here is a list of restaurants closing or file for bankruptcy.
1. Cracker Barrel
2. Applebee’s have shut down over 33 stores in 2023 and closing another 25 to 35 across the country.
3. TGI Fridays is closing 36 locations in the U.S.
4. Denny’s said they closed 57 stores in 2023 and may close another 24 for this year.
5. Boston Market has already closed 300 locations for not paying their bills like rent and is now facing lawsuits.
6. Red Lobster owes over $1 billion in debt, and they have shut down 93 stores.
7. MOD Pizza closed 26 stores.
8. PDQ has closed around 8 stores in South Carolina and North Carolina.
9. Outback Steakhouse closed the doors of 41 locations
10. Hardee’s closed around 40 stores over the past year.
11. Tijuana Flats closed stores in Florida and, this past April, filed for Chapter 11 bankruptcy.
The CEOs of these companies gave several reasons why they had to close stores or file for bankruptcy.
Higher inflation, food costs, minimum wage increases in states, and slower foot traffic.
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