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Closing locationsis not the only sign of a fast-food chain under duress.
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Restaurants may also be forced to adjust other business practices to keep customers returning.
Early signs, like underperforming quarterly and annual reports, could signal such drastic actions further down the road.
Considering those factors, the coming years could be a challenge for the following fast-food restaurant chains.
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Starbucks
Despite price hikes,Starbuckshas struggled to show an increase in sales in recent quarters.
This led the coffee chain to makedrastic changesto its menu and business practices in early 2025.
This includes reducing its menu by 30%, including beverage and food items.
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That happened in summer 2024 whenKFC suddenly closed multiple locationsin Illinois.
Rather than one or two restaurants closing, last summer saw nearly one dozen locations shutter in one region.
Along with other fast food chains in this lineup, KFC could face rough waters if the pattern continues.
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The fast food chain closed multiple locations in2023in the Midwest and South, with moreclosingin 2024 across Central Illinois.
The company hoped that these closures could stop the bleeding and re-focus on the performing locations.
Struggles with franchised locations aren’t new for Pizza Hut, with its largest U.S. franchiseefiling for bankruptcyin 2020.
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Without drastic signs of improvement, Pizza Hut could be in survival mode.
Urgency is the name of the game, as mentioned by CEO Todd Penegor.
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