The restaurant business is a notoriously difficult one.
Amid inflationary challenges and shifting consumer preferences, many restaurants have struggled to stay afloat.
Meanwhile, others have been forced tocompletely shut down.
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Within the restaurant industry, several major chains have faced their fair share of financial issues.
For some, this has led to numerous closures.
From sit-down restaurants to fast-casual eateries, here are 11 chains that have been struggling recently.
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Unfortunately, ithasn’t been able to reverse the negative trendin 2024.
The chain is also facing some issues with its profits.
Margins have continued to lag at some Kona restaurants in 2024, he added.
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“We are clearly in the early innings of a robust growth strategy,” Hilario said.
Same-store sales and transactions declined by 3% and 7% in North America, respectively.
Starbucks stock fell 12% in after-hours trading following the release of the iffy earnings results on April 30.
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Additionally, the chain is facingongoing boycottsin connection to the Israeli-Palestinian conflict.
However, the chicken chain’s American restaurantsdidn’t perform nearly as well.
However, the burger giant has been falling out of favor with its lower-income customers.
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The pullback from lower-income customers is only one aspect of McDonald’s recent struggles.
McDonald’s also reportedlower-than-anticipatedprofits and sales in the latest quarter.
Before its latest quarter, Cracker Barrel experienced declining foot traffic for four straight quarters.
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The chain reported a 7.1% decrease during its first quarter, which ended on Oct. 27.
Cracker Barrel didn’t share any details about what drove the traffic decline during its recent earnings call.
Going forward, Cracker Barrel is shifting its brand positioning by updating its menu and restaurant design.
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The chain is also focusing on its new loyalty program that itlaunched in September.
The bankruptcy filing was only the latest sign of trouble for Red Lobster.
More customers ordered the all-you-can-eat deal than the company anticipated, resulting in $11 million in operating losses.
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The U.S. Department of Labor is currently investigating the restaurant chain because of complaints over wage and hour violations.
The restaurant chain has filed an appeal to this ruling.
Specifically, a Denny’s location previously needed $1 million to break even and stay open.
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Traffic also declined again by about 6%, Restaurant Business Magazinereported.
Denny’s was operating 1,553 locations worldwide as of March 27 this year.
Looking ahead, the breakfast chain aims to open about 30 new restaurants in 2024.
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Applebee’s
Since 2017, Applebee’s has closed around 300 restaurants.
Looking ahead, Dine Brandsplans to close 25 to 35 restaurants in 2024.
Additionally, Applebee’s domestic same-store sales have decreased for three consecutive quarters, according toRestaurant Dive.
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These dropped by 0.5% in the fourth quarter, with this decrease tied to declining traffic.
To promote the chain’s growth, Dine Brands announced plans to opendual-branded restaurants with IHOP.
The company currently operates eight of these prototypes internationally.
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“As a result, our menu looks dated compared to newer fast-casual competitors.”
Some changes include adding new menu items and recipes, renaming dishes, and updating the menu layout.
Most of the 41 closures were Outback locations, according to Chris Meyer, Bloomin' Brands' CFO.
This story has been updated to include new information, additional entries, fact-checking, and copyedits.
