As of late, even the most classic of chains have fallen on hard times. Did your favorite fast-food franchise make the cut, or will they be closing their doors for good?
Burger King
Burger King is the king no longer. Founded in 1953 as Insta-Burger King in Jackson, Florida, Burger King has been shuffled from owner to owner four times. The 1970s were known as Burger King's "Golden Age" of advertising, but once the decade had passed, campaigns became less and less successful, with some of the commercials being slammed for sexism or cultural insensitivity.
With over 17,800 restaurants operating across the country, it seems like Burger King is far from peril, but that isn't necessarily the case. The chain announced its intention to shut down between 200 and 250 underperforming restaurants—between 100 and 150 more than the previous year. Will BK be kicking the dust?
Red Robin
Red Robin, yum! This chain was founded in 1969 in Seattle, Washington. The owner, Sam, sang in a barbershop quartet and often could be heard singing the song "When the Red, Red Robin (Comes Bob, Bob, Bobbin' Along)". He loved the song so much that he changed the name from Sam's Tavern to Sam's Red Robin.
Red Robin announced that it would be closing ten locations due to underperformance after their worst year in history—net income fell by almost 90%. The company has stated that it will not be accepting the suggestions of investors to dissolve, intending to soldier on.
Marie Callender's
Marie Callender and her husband Cal Warren Callender sold pies on in the city of Long Beach in the 1930s; by 1948, they had sold their car and used the money to establish a wholesale bakery with their son, Don. By 1964, the first Marie Callender's location was up and running.
However, by the time the mid-2000s rolled around, 58 units were shuttered and the business filed for bankruptcy not once, but twice. These days, only 28 locations remain across the United States, and Perkins has been purchased by Huddle House.
Perkins
Perkins Family Restaurant has lost its perk. Founded in 1958 in Cincinnati, Ohio, the bakery and breakfast chain is located in both the U.S. and Canada. Perkins is owned by Marie Callender's, but unfortunately, both Perkins and its parent company have filed for bankruptcy.
Due to Marie Callender's filing for bankruptcy, sudden closures struck Perkins restaurants across the country. However, many of these closures happened practically overnight, resulting in the confusion of both employees and customers alike. Perkins received some heat for the sneaky move—and rightfully so.
Boston Market
Boston Market was once known as Boston Chicken, a casual-dining family restaurant that opened in 1984. The restaurant's specialty is rotisserie chicken, but other fan favorites include mashed potatoes and cheesy macaroni. The chain is most common in the Northeast and Midwest, but there are a few scattered throughout Florida, as well.
Once the darling of Wall Street, Boston Market emptied its pockets, paying sky-high prices for everything from disposable cutlery to the software for operating systems. The push to acquire lunch and the dated menu forced the chain to file for bankruptcy.
Olive Garden
Olive Garden was first opened in Orlando, Flordia in 1982, where it quickly became the fastest-growing General Mills restaurant division. The company went on to become the largest chain of Italian-themed full-service restaurants in America. However, things are looking grim for the franchise.
Although customers do enjoy the food, the dine-in experience has proven essential for the chain. In March 2020, Darden Restaurants, which now owns Olive Garden, Longhorn Steakhouse, and a number of other casual dining restaurants, reported that Olive Garden's profits dipped 60% from the previous year.
Steak 'n Shake
Steak 'n Shake, established over 80 years ago, recently announced that 51 branches would be shut down for good. "The burger chain has been struggling for the last several years, 'temporarily' closing over a hundred locations and hemorrhaging millions of dollars as sales plummet," wrote Irene Jiang from Business Insider.
The chain first opened its doors in 1934. Since then, it has been the subject of several lawsuits, including an employee classification lawsuit in which Steak 'n Shake was forced to pay $7.7 in damages. They were later sued by a group of over 1,100 managers on similar grounds of being unable to earn overtime.
Taco Bell
What once began as a dream for one man working a hot dog stand eventually grew into one of the most popular American-Mexican fast-food chains in the United States. The first Taco Bell, originally called Taco Tia, was opened by Glen Bell in 1962. Bell based the cuisine on neighboring Mexican food stands.
Despite Taco Bell's evident success, the chain has been shedding menu item after menu item in 2020. Sales had fallen by 8% in July 2020 when compared to its competitors. The chain also closed half a dozen restaurants this year, including the only Taco Bell in Kodiak, Alaska.
Carrabba's Italian Grill
Carrabba's Italian Grill was founded as a family restaurant in 1986. Soon, the restaurant merged with Outback Steakhouse, expanding from its Houston, Texas location into a national chain.
It is currently owned and operated by Bloomin' Brands and headquartered in Tampa, Florida—the state where Carrabba's is most popular. Although Carrabba's was growing for a period of time, 43 restaurants were strategically closed due to underperformance issues.
Sbarro
You may recognize Sbarro from the food court of your local mall. Founded in 1956 in Brooklyn, New York, Sbarro boasts "fresh Italian cooking," although that's far from the case. Sbarro has been voted the worst fast-food chain in America.
Why? Well, despite its slogan, Sbarro just doesn't taste "fresh" to customers. Hundreds of unprofitable stores around the country have shuttered, including its flagship location in New York. By 2016, Sbarro had closed over half their stores.
Hometown Buffet
Hometown Buffet is owned by Ovation Brands, previously known as Buffets, Inc.—and for good reason! The company also owns Old Country Buffet and Ryan's Buffet. In 2008, Hometown Buffet filed for bankruptcy, and by 2019, they had downsized from 250 stores to only 33.
Kona Grill
This upscale casual dining company is based in Scottsdale, Arizona. The restaurant specializes in American cuisine, sushi, and cocktails. In the spring of 2019, Kona Grill filed for bankruptcy, simultaneously announcing that the CEO was thinking about leaving the company.
Quiznos
This fast-food chain specializes in toasted subs. Founded in 1981, the restaurant once expanded to nearly 5,000 locations, but by 2018, less than 800 restaurants remained in the U.S. In 2014, the company filed for bankruptcy, but Quiznos has found success overseas in places like Europe, the Middle East, and Asia.
Carl's Jr.
In 1941, truck driver Carl Karcher and his wife Margaret purchased a hot dog cart in Los Angeles. Two decades later, Carl's Jr. had expanded throughout the state of California. Despite their popularity, Carl's Jr. has been consistently closing down more and more stores each year.
T.G.I. Friday's
Unfortunately for T.G.I. Friday's, it might be time to stop thanking goodness it's Friday. Founded in 1965, the chain has over 870 locations around the world with the exception of sub-Saharan Africa. Although the chain attempted to revamp its menu, the change didn't come quick enough, and many T.G.I. Friday's restaurants have closed throughout 2019 and 2020.
Ruby Tuesday
Ruby Tuesday first opened 48 years ago in Knoxville, Tennessee. As recently as October of 2020, the company filed for bankruptcy. The chain was deeply impacted by the COVID-19 pandemic, with many locations closing worldwide.
IHOP
IHOP, or International House o pancakes, was first opened in 1958. In 2007, the company acquired Applebee's. You may recall their unsettling attempt at rebranding from IHOP to IHOb, or International House of Burgers. Unfortunately, the campaign fell flat, and the chain has closed as many as 40 locations.
O'Charley's
Over the years, O'Charley's has become nothing more than a black hole for investors. Once a popular establishment in the Southern and Midwestern states, O'Charley's has shut down a number of its stores. In one day, the chain closed eight of its locations, including the only O'Charley's in Florida.
Applebee's
If Applebee's closes, where will the public get their dollar margaritas? The restaurant attempted to cater to millennials by adding tablets and WiFi to every table, but the move backfired. Long-time, older customers were put off by the change and slowly began to spend their money elsewhere.
The Cheesecake Factory
The Cheesecake Factory was founded as a bakery in Los Angeles, California 48 years ago, and became a restaurant in 1978. In 2020, Fortune ranked The Cheesecake Factory as the twelfth best company to work for on their Top 100 list based on employee satisfaction. However, in March 2020, the chairman and CEO David Overton announced that none of the 294 locations would be able to pay its rent for April, and 27 locations closed its doors. Since the announcement, its stock has plummeted by more than 50%.
Golden Corral
This all-you-can-eat buffet and grill was founded in 1973 and currently has 42 locations in the U.S. However, facing hard times during the COVID-19 pandemic, Gold Corral was forced to close 35 of its locations and furlough 2,290 employees. CEO Lance Trenary said, "It is truly an emotional and challenging time for our country. The realities of the current situation have forced us to make difficult decisions."
Friendly's
Founded in 1935, Friendly's generally dominates the Eastern seaboard. It was established in the midst of the Great Depression—which might lead you to believe it can survive anything. The company has declared bankruptcy before and intends to close all stores that have underperformed in 2020.
Fuddruckers
Fuddruckers is known for grinding meat and baking buns on-site. The founder, Philip J. Romano, believed that "the world needed a better hamburger." Despite the glamorous promise, Fuddruckers took a hit in the 2008 financial crisis. It was announced in September 2020 that existing Fuddruckers assets will be liquidated and distributed to investors.
Luby's
This old-school cafeteria-style restaurant was founded in 1947 in San Antonio, Texas by Bob Luby and his son. The unique cafeteria-style gimmick was extremely popular, but in 2009, Luby's shut down 25 stores and enacted massive staff layoffs. Unfortunately, due to the difficulties of 2020, it's looking like Luby's might have to pull a similar stunt.
Tim Hortons
Tim Hortons is the largest fast-food chain in all of Canada. The coffee and donut shop was founded by Canadian hockey player Tim Horton along with his business partner Jim Charade. Unfortunately, chronic underperformance has caused many stores to go under in recent years.
McCormick & Schmick's
McCormick & Schmick's Seafood Restaurants Inc. was founded in 1979 by Bill McCormick and Douglas Schmick. The chain began in Portland, Oregon, but soon expanded to other parts of the U.S. and Canada. Sadly, the restaurant chain's parent company, Landrys, Inc., closed about half of the remaining business branches between 2019 and 2020.
Roy Rogers
Originally named RoBee's House of Beef, the Marriott Corporation bought out the company in 1968 and dubbed it Roy Rogers. The chain is most popular throughout the Northeast and Midatlantic regions of the U.S. At its peak, there were over 600 Roy Rogers locations. However, as of August 2019, only 48 remain.
Pizza Hut
Pizza Hut has been around since 1958, but not for much longer. In August 2020, it was announced that Pizza Hut will be closing 500 dine-in restaurants by mid-2021, as well as 300 additional restaurants after one of its franchise providers went bankrupt.
Subway
Once the "healthy" fast-food option for folks on the go, Subway has long since fallen lower on the totem pole below other diet-friendly options. In 2016, the franchise shut down 359 more stores than it had opened. Subsequent years have seen over 2,000 Subway stores closing their doors for good.
Chili's
Similar to restaurants like Applebee's and T.G.I. Friday's struggling to stay afloat in recent years, Chili's has not been spared its fate. In 2017, the franchise's stock plummeted 40%. They attempted to introduce a loyalty program, but soon, the program began to eat into their profits rather than increasing them.
Buffalo Wild Wings
"Millennial consumers are more attracted than their elders to cooking at home, ordering delivery from restaurants, and eating quickly, in fast-casual or quick-serve restaurants," said Buffalo Wild Wings' former CEO. B-Dubs was recently purchased by Arby's for $2.9 billion. Hopefully, they'll be able to keep their heads above water. Where else would we get wings on game day?
Hooters
Whatever Hooters lacked in food quality, they certainly made up for it in entertainment. The owners of Hooters decided to open it on April Fools' Day because they were so certain the idea was going to crash and burn, but somehow, Hooters prevailed. Sadly, Hooters hasn't been performing well, and their doors have been slated for closing since 2018.
Souplantation
The name of this establishment alone is enough to shutter its doors forever. Souplantation, or Sweet Tomatoes, was an all-you-can-eat buffet-style restaurant. The company closed temporarily in March 2020 due to the COVID-19 pandemic. By May, the closure had been made permanent.
Outback Steakhouse
This Australian-themed restaurant has over 1,000 throughout 23 countries around the world. Although their global presence means they won't be going anywhere anytime soon, they still closed down 43 branches this year alone. A steady decline in revenue for subsidiaries of Bloomin' Brands means that more closures are most likely on the horizon.
Bob Evans
The downfall of the Bob Evans comfort food empire began in 2017 when the company shut down 27 stores due to underperformance—even in their home state of Ohio. The remaining locations were sold to Golden Gate Capital, so perhaps Bob Evans will come back swinging in years to come.
Noodles & Company
In 1995, the creators of Noodles & Company were determined to create a restaurant that served one thing, as evidenced by the name. Unfortunately, limiting your menu to noodles alone hasn't bode particularly well for the brand, who have reported massive losses and closed 39 out of 55 locations.
Joe's Crab Shack
It may sound like a restaurant out of a cartoon, but Joe's Crab Shack is anything but cutesy. The beach-themed seafood restaurant suddenly shut down 41 of its 112 locations after its parent company, Ignite Restaurant Group, filed for bankruptcy. However, the franchise neglected to inform its employees, who arrived to work only to find the doors locked along with a sign claiming their services were no longer needed.
Qdoba
Fast-food burrito joints like Chipotle, Moe's, and Baja Fresh have cropped up over the years, but few have managed to survive the competition. Qdoba was forced to axe 67 locations in 2013 but has since somewhat recovered. The company also rebranded from "Qdoba Mexican Grill" to "Qdoba Mexican Eats", which might have helped to boost sales.
Pollo Tropical
Pollo Tropical is a Caribbean-inspired, Miami-based restaurant chain that was established in 1988. Things began to head south for the franchise in 2016 when it was made public that Pollo Tropical had lost $4.5 million in one quarter. Slowly, all Texas locations were shut down. Although Pollo Tropical still operates in some areas, it has dwindled to 140 locations.
BJ's
BJ's Restaurant and Brewhouse is looking worse for wear. The chain's stock plummeted by 25%, and in-store sales declined by 1.4% in 2018. Although it might not sound like too much of a blow, for a franchise that's already struggling, all bad news could be a sign of the end.
Papa Murphy's
Papa Murphy's was founded in 1995. The name is a combination of Papa Aldo's Pizza and Murphy's Pizza. According to Seeking Alpha, the store "is a rudderless sinking ship." Along with falling sales pre-COVID-19, the pandemic has been responsible for mass layoffs.
Chipotle
Chipotle Mexican Grill may be a fan favorite, but it's had its hurdles along the way. The infamous E. coli outbreak was enough to lose a fair majority of its customers, but Chipotle has worked hard to reconstruct their image since the near-fatal blow.
Papa John's
Papa John's was once the go-to for a quick pie, but the chain's CEO, John Schnatter, just can't seem to go a day without bad press. Sales first tanked in 2017 when Schnatter criticized NFL protests for hurting his sales. Then, word got out that Schnatter used an unacceptable slur during a conference call. He was removed as CEO and chairman, but the company hasn't been able to recover from his failures.
California Pizza Kitchen
California Pizza Kitchen specializes, believe it or not, in California-style pizza. The restaurant was established in 1985 by a pair of lawyers in Beverly Hills. The chain has fallen on hard times, filing for bankruptcy in 2020 to restructure its debts. This past April alone, 46 locations were shuttered permanently.
Chuck E. Cheese
This classic restaurant-slash-entertainment establishment filed for bankruptcy in 2020, announcing that it would be permanently closing down over 30 of its locations. The COVID-19 pandemic put a significant strain on the company's finances.
Le Pain Quotidien
Le Pain Quotidien (or, in English, the daily bread) is an international bakery-restaurant chain known for its long, wooden "communal tables." However, there won't be much of a community left, considering the company filed for bankruptcy in 2020, permanently closing 58 of its 98 locations.
McDonald's
No, this fast-food giant isn't going out of business—but that's not to say it hasn't suffered in 2020. Over half of the 200 restaurants slated for closure are located in Walmart stores. Still, there are over 14,000 McDonald's restaurants in the U.S., which means that they're most likely here to stay.
Starbucks
Starbucks is the primary representation of U.S. coffee culture. The world's largest coffee chain isn't going out of business, but the business will be closing up to 400 company-operated cafes within the next 18 months. That being said, they will also be opening 300 new locations specializing in only pick-up and to-go business.
Sizzler
Sizzler has been a staple of American culture since 1958, but not for much longer. In September 2020, the company filed for bankruptcy, claiming that the coronavirus had been detrimental to sales. Apparently, foregoing the dine-in element of the Sizzler experience was enough to lose customers' interest.
Denny's
Denny's is the classic American pancake house, known for serving breakfast, lunch, and dinner at all hours of the day. The restaurant only closes when required by law. Despite their dedicated schedule, the company was forced to close 1,700 restaurants in 2020, including 15 New York locations.