Last Call: Restaurant Chains Closing Locations by 2024

Updated: Feb 26, 2024By Audrey KyanovaBusiness

This article originally appeared on Investing.com. It has been republished here with permission.

An empty closed down Restaurant Building / Shutterstock.com

In 2024, despite the overall resurgence of the restaurant industry since 2020, familiar names like Pizza Hut and Starbucks could be closing down some locations. It’s not a doomsday scenario, but rather a strategic move. Restaurants have generally fared well in the post-pandemic era, adapting to new norms and embracing digital platforms.

However, the closure of underperforming outlets is a reality check for the industry. Even in good times, staying nimble is crucial. So, next time you’re craving that pepperoni pizza or caramel macchiato, you might need to check if your go-to spot is still standing or if it’s time to discover a new neighborhood gem.

1. Pizza Hut

Locations Closing: 1,200 Delivery Driver Layoffs
Annual Revenue Of Restaurant: $6.8 billion (2022)*

Major changes are on the horizon for Pizza Hut on the West Coast, where over 1,200 delivery drivers are facing layoffs due to a new law increasing California’s fast-food minimum wage. The impact will be felt in various counties, including Los Angeles, Orange, and Riverside, affecting Pizza Hut employees.

Pizza Hut ©Robert/stock.adobe.com

Another franchise in Sacramento, Palm Springs, Central California, Southern Oregon, and the Reno-Tahoe area is also set to lay off 841 drivers. This shake-up reflects the ongoing challenges businesses navigate, with economic shifts influencing workforce dynamics in the ever-evolving restaurant industry.

2. IHOP

Locations Closing: 1
Annual Revenue Of Restaurant: $349.6 million (2022)*

As of January 2024, the iconic IHOP in West Hollywood has shuttered its doors, leaving an empty parking lot in place of the bustling 24-hour hotspot. Despite lingering holiday decorations, a note on the door announced the closure at 8461 Santa Monica Blvd, thanking patrons for their support and redirecting them to the Hollywood location on 7006 Sunset Blvd.

IHOP ©Jonathan Weiss/Shutterstock.com

A voicemail echoed the closure message, expressing regrets for any inconvenience caused. The unexpected closure serves as a reminder of the shifting landscape for restaurants, with establishments adapting to challenges and sometimes closing their doors for good.

3. TGI Friday’s

Locations Closing: 36
Annual Revenue Of Restaurant: $2 billion (2021)*

TGI Fridays has closed the doors of 36 “underperforming” locations across the United States (both East and West Coast) as part of its “ongoing growth strategy.” The move, aimed at optimizing operations and enhancing customer experiences, aligns with the company’s vision for the future.

TGI Friday’s ©SnapTPhotography/Shutterstock.com

TGI Fridays U.S. President Ray Risley emphasized the commitment to delivering a superior guest experience. While job transfers have been extended to 80% of affected employees, the closures reflect the brand’s dedication to streamlining operations and strengthening its franchise model in selected markets nationwide. Dining enthusiasts might need to adjust their plans as TGI Fridays reshapes its footprint.

4. McCormick & Schmick’s

Locations Closing: 1
Annual Revenue Of Restaurant: $414.7 million (2022)*

After 15 years in Oak Brook, McCormick & Schmick’s restaurant bid farewell on New Year’s Day. The seafood and steak eatery at 3001 Butterfield Road closed its doors, leaving only two other Illinois locations in Rosemont and Chicago.

McCormick & Schmick’s ©Ken Wolter/Shutterstock.com

Despite the Oak Brook closure, the chain, with roots dating back to 1974 in Portland, Oregon, maintains 18 locations nationwide, including Indianapolis. The move suggests a strategic shift while preserving a presence in key markets, impacting loyal patrons who frequented the Oak Brook Promenade establishment.

5. Burger King

Locations Closing: 400
Annual Revenue Of Restaurant: $1.9 billion (2023)*

As part of its plan to shutter up to 400 locations in the ongoing years of 2023 (and potentially 2024), Burger King closed an additional six restaurants in the late fall of 2023. Since spring of 2023, dozens of stores have already ceased operations, and those closures could bleed into 2024.

Burger King ©agsaz/Shutterstock.com

The closures are strategically aimed at “older and lower-performing restaurants,” as revealed by the company’s CEO. This move signifies the fast-food giant’s commitment to refining its portfolio and optimizing performance in the face of changing market dynamics, potentially impacting the accessibility of Burger King in certain areas.

6. Starbucks

Locations Closing: 23 Temporarily
Annual Revenue Of Restaurant: $35.976 billion (2023)*

Starbucks faces legal scrutiny for allegedly unlawfully closing nearly two dozen stores, including eight in Western Washington, with accusations of discouraging union activities. The National Labor Relations Board filed a complaint against the Seattle-based coffee giant, demanding the reopening of all 23 locations and compensation for lost wages.

Starbucks ©lenscap50/stock.adobe.com

This incident happened in late 2023, and it could have repercussions for Starbucks in 2024, affecting its reputation and potentially influencing the company’s labor practices and relationships with employees in the upcoming year.

7. Bonefish Grill

Locations Closing: 1
Annual Revenue Of Restaurant: $560 million (2022)*

After more than a decade of serving the community, Bonefish Grill in Boise, Idaho, has permanently closed its doors. The beloved seafood restaurant, a local staple for 15 years, shut down on January 14, leaving workers, including Assistant Manager Ahmad Alharbyah, saddened by the unexpected closure.

Bonefish Grill ©Chase D’Animulls/stock.adobe.com

A sign on the door bids farewell, marking the end of an era for patrons who cherished the establishment. The closure reflects the challenges faced by restaurants, emphasizing the impact on both employees and the local community.

8. Church’s Chicken

Locations Closing: 1
Annual Revenue Of Restaurant: $1.256 million per franchise (2023)*

The aroma of fried chicken and biscuits faded in central Ohio as Church’s Chicken and KFC shuttered locations. The Church’s Texas Chicken spot at 4488 E Main St. in Whitehall was supposed to be temporarily closed, yet three months in as of January 2024, there were no signs of reopening.

Church’s Chicken ©Bruce VanLoon/Shutterstock.com

Staff at the Cleveland, OH location expressed uncertainty about future plans. Recent reviews had cited understaffing, lengthy drive-thru lines, and extended wait times, signaling operational challenges.

9. Papa John’s

Locations Closing: Up to 100
Annual Revenue Of Restaurant: $2.09 billion (2023)*

Papa John’s is contemplating the closure of up to 100 stores in the U.K. in 2024, a strategic decision to navigate the evolving landscape of the pizza industry. The potential shutdowns signify the company’s commitment to adapting to changing consumer trends and optimizing its operations.

Papa John’s ©Dutchmen Photography/Shutterstock.com

As the brand reevaluates its footprint overseas, this move reflects a proactive approach to maintain competitiveness and align with the dynamic market dynamics influencing the fast-food sector.

10. Dairy Queen

Locations Closing: 1 (Late 2023)
Annual Revenue Of Restaurant: $3.6 billion (2022)*

After over six decades of family operation, a BRK Grill & Chill in Gettysburg, Adams County, is bidding farewell. The restaurant at 230 Steinwehr Avenue shared the closure news on Facebook, marking its last day on Saturday, Dec. 23, after a decade of serving the community. It remains to be seen what will take the store’s place in 2024.

Dairy Queen ©Settawat Udom/Shutterstock.com

Expressing gratitude to loyal customers, the post highlighted the camaraderie on Steinwehr Avenue and the collaborative involvement in community events. The closure represents the end of an era for a beloved family-operated franchise in the heart of Gettysburg.

11. Noodles & Company

Locations Closing: 1
Annual Revenue Of Restaurant: $509.5 million*

After nearly two decades in Vienna, Noodles & Company has closed its doors at the Vienna Marketplace shopping center due to high rent. The closure was confirmed on Jan. 24, with a flier expressing gratitude to customers for their support. The chain suggests visiting the nearest location at Idylwood Plaza.

Noodles & Company ©Kristi Blokhin/Shutterstock.com

Though the replacement is uncertain, The Burn reports that Call Your Mother deli will fill the vacated Cold Stone Creamery space nearby. Noodles & Company had been a Vienna fixture since at least 2007, marking its early presence in the D.C. region. The closure adds to the evolving culinary landscape in Vienna Marketplace.

12. Joe’s Crab Shack

Locations Closing: 1
Annual Revenue Of Restaurant: Unconfirmed

Joe’s Crab Shack closed its Clifton location in New Jersey abruptly on December 31, 2023, citing a natural lease expiration. The seafood chain’s closure at 405 Allwood Rd. in The Promenade Shops at Clifton leaves just one location in the region.

Joe’s Crab Shack ©ehrlif/Shutterstock.com

Terry Turney, COO of Joe’s Crab Shack, expressed gratitude to the community for years of support and assured employees of efforts to relocate them to nearby sister properties. The sudden shutdown marks the end of an era for Joe’s Crab Shack in Clifton.

13. Pollo Tropical

Locations Closing: 1
Annual Revenue Of Restaurant: $363.5 million (2022)*

In 2023, Pollo Tropical closed its doors, leaving the Regency area of Arlington without its vibrant flavors. The Ferber Co. announced that Panda Express will fill the void, leasing and renovating the former Pollo Tropical site at 9370 Atlantic Blvd. in the Regency Park shopping center.

Pollo Tropical ©Unidas.ME/Shutterstock.com

Ferber purchased the property from Pollo Operations Inc. for $2 million and plans to reintroduce Panda Express to the area, emphasizing the desire to bring back a familiar taste to the community after Pollo Tropical’s departure in fall 2023.

14. Chili’s

Locations Closing: 1
Annual Revenue Of Restaurant: $4.1 billion (2022)*

Chili’s, a popular casual restaurant chain, is shutting its doors in a prime location at 8136 Providence Road in Charlotte, North Carolina. The closure, scheduled for January 9, follows a trend of restaurant closures affecting competitors like TGI Fridays.

Situated in the bustling Arboretum shopping center near Walmart, Sephora, and Barnes and Noble, the closure is linked to an expiring lease, according to a spokesperson. As the landscape of dining establishments shifts, this marks the end of Chili’s presence in that specific location, leaving a void in the culinary scene near these popular retail destinations.