{"id":9373,"date":"2025-05-13T16:52:00","date_gmt":"2025-05-13T16:52:00","guid":{"rendered":"https:\/\/gosnappy.io\/blog\/?p=9373"},"modified":"2025-08-15T16:22:49","modified_gmt":"2025-08-15T16:22:49","slug":"6-biggest-lessons-from-recent-restaurant-chain-closures","status":"publish","type":"post","link":"https:\/\/gosnappy.io\/blog\/6-biggest-lessons-from-recent-restaurant-chain-closures\/","title":{"rendered":"6 Biggest Lessons From Recent Restaurant Chain Closures"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"9373\" class=\"elementor elementor-9373\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-3c2d6f5e e-flex e-con-boxed wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no e-con e-parent\" data-id=\"3c2d6f5e\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-2c0b2c2 elementor-widget elementor-widget-image\" data-id=\"2c0b2c2\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"1200\" height=\"675\" src=\"https:\/\/gosnappy.io\/blog\/wp-content\/uploads\/2025\/05\/big-chain-closures.png\" class=\"attachment-full size-full wp-image-9374\" alt=\"big chain restaurant closures\" srcset=\"https:\/\/gosnappy.io\/blog\/wp-content\/uploads\/2025\/05\/big-chain-closures.png 1200w, https:\/\/gosnappy.io\/blog\/wp-content\/uploads\/2025\/05\/big-chain-closures-300x169.png 300w, https:\/\/gosnappy.io\/blog\/wp-content\/uploads\/2025\/05\/big-chain-closures-1024x576.png 1024w, https:\/\/gosnappy.io\/blog\/wp-content\/uploads\/2025\/05\/big-chain-closures-768x432.png 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-2c95df46 e-flex e-con-boxed wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no e-con e-parent\" data-id=\"2c95df46\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-5af138c5 elementor-widget elementor-widget-heading\" data-id=\"5af138c5\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">6 Biggest Lessons From Recent Restaurant Chain Closures<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-310204d2 e-flex e-con-boxed wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no e-con e-parent\" data-id=\"310204d2\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-2f44d38 e-con-full e-flex wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no e-con e-child\" data-id=\"2f44d38\" data-element_type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-56fe15e4 elementor-author-box--layout-image-left elementor-author-box--align-left elementor-author-box--image-valign-top elementor-author-box--avatar-yes elementor-author-box--name-yes elementor-author-box--biography-yes elementor-author-box--link-no elementor-widget elementor-widget-author-box\" data-id=\"56fe15e4\" data-element_type=\"widget\" data-widget_type=\"author-box.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-author-box\">\n\t\t\t\t\t\t\t<div  class=\"elementor-author-box__avatar\">\n\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/secure.gravatar.com\/avatar\/2b6793a050f46c686ddf577fa0fe50b87ee8c39eef754eff32cf9b53832229e2?s=200&#038;d=mm&#038;r=g\" alt=\"Picture of Thomas Campbell\" loading=\"lazy\">\n\t\t\t\t<\/div>\n\t\t\t\n\t\t\t<div class=\"elementor-author-box__text\">\n\t\t\t\t\t\t\t\t\t<div >\n\t\t\t\t\t\t<div class=\"elementor-author-box__name\">\n\t\t\t\t\t\t\tThomas Campbell\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-author-box__bio\">\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-731d5edb e-con-full e-flex wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no e-con e-child\" data-id=\"731d5edb\" data-element_type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-3037b15f elementor-widget elementor-widget-text-editor\" data-id=\"3037b15f\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><em>May 13th, 2025<\/em><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-7454f4e0 e-flex e-con-boxed wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no e-con e-parent\" data-id=\"7454f4e0\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-2b9cbe20 e-con-full e-flex wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no e-con e-child\" data-id=\"2b9cbe20\" data-element_type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-4cf4beb0 elementor-widget elementor-widget-text-editor\" data-id=\"4cf4beb0\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"flex flex-grow flex-col max-w-full\"><div class=\"min-h-[20px] text-message flex flex-col items-start gap-3 whitespace-pre-wrap break-words [.text-message+&amp;]:mt-5 overflow-x-auto\" data-message-author-role=\"assistant\" data-message-id=\"310d2e91-2116-47fe-90e4-dce20c165253\"><div class=\"markdown prose w-full break-words dark:prose-invert light\"><p>The restaurant industry faces another wave of shake\u2011outs in 2025 which continues the trend from 2024 of large restaurant chain cutting locations and filing bankruptcies. Applebee\u2019s, Denny\u2019s, Wendy\u2019s, Rubio\u2019s, Outback Steakhouse, and Hooters have all closed locations this year or plan to do so in 2025. More recently, Tex\u2011Mex chain <strong>On The Border filed <a href=\"https:\/\/apnews.com\/article\/on-border-mexican-bankruptcy-restaurant-70da4d0ebba0a01c323f091746849652\">Chapter 11 in March 2025 and immediately shut dozens of locations<\/a><\/strong>.<\/p><p>Fast\u2010casual Noodles &amp; Company announced plans to close <strong data-start=\"676\" data-end=\"723\">13\u201317 company-owned and 4 franchised stores<\/strong> (17\u201321 total) in 2025, even as same\u2010store sales were rising. Jack in the Box said it would close <a href=\"https:\/\/www.foxbusiness.com\/lifestyle\/fast-food-chain-closing-up-200-underperforming-locations#:~:text=Jack%20in%20the%20Box%20announced,food%20company%E2%80%99s%20financial%20performance\"><strong data-start=\"863\" data-end=\"874\">150\u2013200<\/strong> restaurants deemed \u201cunderperforming<\/a>\u201d and often decades old. These high\u2011profile cuts, driven by weak traffic, high costs and legacy leases, underscore that <strong>shutting down<\/strong><strong data-start=\"1163\" data-end=\"1217\"> low\u2011performing locations and adapting strategy<\/strong> is essential. The lessons below distill what independent and franchise owners can learn from these cases.<\/p><p data-start=\"1326\" data-end=\"1637\">\u00a0<\/p><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-6754d8da e-flex e-con-boxed wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no e-con e-child\" data-id=\"6754d8da\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-1918cf6c elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"1918cf6c\" data-element_type=\"widget\" data-widget_type=\"divider.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-divider\">\n\t\t\t<span class=\"elementor-divider-separator\">\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5c24bf37 elementor-widget elementor-widget-heading\" data-id=\"5c24bf37\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Focus on Unit Economics: Cut Losses Early<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-39f36f83 elementor-widget elementor-widget-text-editor\" data-id=\"39f36f83\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"flex flex-grow flex-col max-w-full\"><div class=\"min-h-[20px] text-message flex flex-col items-start gap-3 whitespace-pre-wrap break-words [.text-message+&amp;]:mt-5 overflow-x-auto\" data-message-author-role=\"assistant\" data-message-id=\"f67c9d0b-9d63-482b-a135-e8365b153cda\"><div class=\"markdown prose w-full break-words dark:prose-invert light\"><p>Chains overwhelmingly shut stores that aren\u2019t pulling their weight. Denny\u2019s CEO noted that <a href=\"https:\/\/www.restaurantdive.com\/news\/dennys-accerates-store-closures-70-to-90-2025\/739914\/#:~:text=related%20to%20lease%20expirations.%20,centers%2C%20but%20did%20not%20provide\">many of the 88 closures in 2024 (and the 70\u201390 planned in 2025) had <strong data-start=\"1846\" data-end=\"1889\">average unit volumes below $1.1\u00a0million<\/strong><\/a>. Jack in the Box called out \u201cdecades old\u201d sites with weak sales in its block\u2010closure plan. In practice, owners should <strong data-start=\"2342\" data-end=\"2365\">monitor key metrics<\/strong> (sales per store, traffic, profit margins, etc.) and be ready to close or relocate outlets that fall consistently below thresholds.<\/p><ul data-start=\"2503\" data-end=\"3199\"><li data-start=\"2503\" data-end=\"2629\"><p data-start=\"2505\" data-end=\"2629\"><strong data-start=\"2505\" data-end=\"2530\">Key signals to watch:<\/strong> declining same-store sales, low AUV, negative cash flow, or exorbitant rent in a given location.<\/p><\/li><li data-start=\"2630\" data-end=\"2924\"><p data-start=\"2632\" data-end=\"2924\"><strong data-start=\"2632\" data-end=\"2649\">Action steps:<\/strong> Run profitability analyses by location. If a store loses money or ties up capital, consider closing it and redeploying resources. Denny\u2019s approach shows that <strong data-start=\"2808\" data-end=\"2882\">closing enough weak units can raise average volume at remaining stores<\/strong>.<\/p><\/li><li data-start=\"2925\" data-end=\"3199\"><p data-start=\"2927\" data-end=\"3199\"><strong data-start=\"2927\" data-end=\"2950\">Real-world outcome:<\/strong> When chains concentrate on stronger locations, sales and traffic can rebound. (<a href=\"https:\/\/www.restaurantdive.com\/news\/top-restaurant-chain-closures-2024\/735693\/#:~:text=Restaurant%20brands%20that%20close%20weak,than%20legacy%20restaurants%2C%20for%20example\">Restaurant Dive<\/a> notes Denny\u2019s and Wendy\u2019s new prototype stores are generating much higher traffic and sales than their old units.)<\/p><\/li><\/ul><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2e89981a elementor-widget elementor-widget-heading\" data-id=\"2e89981a\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Be Smart About Location and Leases<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2f0c9d24 elementor-widget elementor-widget-text-editor\" data-id=\"2f0c9d24\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"flex flex-grow flex-col max-w-full\"><div class=\"min-h-[20px] text-message flex flex-col items-start gap-3 whitespace-pre-wrap break-words [.text-message+&amp;]:mt-5 overflow-x-auto\" data-message-author-role=\"assistant\" data-message-id=\"f67c9d0b-9d63-482b-a135-e8365b153cda\"><div class=\"markdown prose w-full break-words dark:prose-invert light\"><p>Closures often trace back to poor real estate decisions. In the case of On The Border, bankruptcy filings revealed that <strong data-start=\"3370\" data-end=\"3395\">113 lease obligations<\/strong> were dragging the company down, with roughly $11.9 million of 2024 rent costs coming from underperforming stores. Red Lobster and other chains have cited onerous long-term leases as a key drag. Owners should therefore <strong data-start=\"3665\" data-end=\"3712\">prioritize sites with sustainable economics<\/strong>: look for locations with strong traffic or captive customer bases, and be cautious about high-rent malls or overly competitive areas.<\/p><ul data-start=\"3849\" data-end=\"4708\"><li data-start=\"3849\" data-end=\"4107\"><p data-start=\"3851\" data-end=\"4107\"><strong data-start=\"3851\" data-end=\"3873\">Lease flexibility:<\/strong> Negotiate shorter or performance-based leases when possible. Avoid taking on large fixed rent for a location without proven demand. If sales falter, a flexible lease (or sublease options) can let you exit without years of losses.<\/p><\/li><li data-start=\"4108\" data-end=\"4506\"><p data-start=\"4110\" data-end=\"4506\"><strong data-start=\"4110\" data-end=\"4130\">Market analysis:<\/strong> Study local demographics and trends. <a href=\"https:\/\/www.foodandwine.com\/restaurant-chain-bankruptcies-2024-8766201#:~:text=Unfortunately%20this%20means%20major%20chains,%E2%80%9D\">Food &amp; Wine<\/a> notes that many consumers now prefer local\/regional brands over national chains. If expanding, focus on core or culturally receptive markets rather than \u201cspreading too thin.\u201d Chains like Portillo\u2019s and Buddy\u2019s Pizza succeed by staying near home.<\/p><\/li><li data-start=\"4507\" data-end=\"4704\"><p data-start=\"4509\" data-end=\"4704\"><strong data-start=\"4509\" data-end=\"4533\">Portfolio balancing:<\/strong> Maintain a healthy mix of high\u2010traffic sites (e.g. main streets, popular shopping centers) and leaner formats (like ghost kitchens or smaller footprints) to hedge risk.<\/p><\/li><\/ul><p data-start=\"4709\" data-end=\"4931\"><em data-start=\"4709\" data-end=\"4718\">Lesson:<\/em> Don\u2019t overextend. On The Border\u2019s example shows that piling up leases in bad locations can sink a brand. Wise owners will <strong data-start=\"4841\" data-end=\"4870\">regularly audit locations<\/strong> and cut or renegotiate any that can\u2019t eventually break even.<\/p><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6105ab15 elementor-widget elementor-widget-heading\" data-id=\"6105ab15\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Adapt Brand and Operations<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-db5ac97 elementor-widget elementor-widget-text-editor\" data-id=\"db5ac97\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"flex flex-grow flex-col max-w-full\"><div class=\"min-h-[20px] text-message flex flex-col items-start gap-3 whitespace-pre-wrap break-words [.text-message+&amp;]:mt-5 overflow-x-auto\" data-message-author-role=\"assistant\" data-message-id=\"f67c9d0b-9d63-482b-a135-e8365b153cda\"><div class=\"markdown prose w-full break-words dark:prose-invert light\"><p>Rather than stagnating, chains are often using closures as a springboard for reinvestment. Dine Brands (Applebee\u2019s\/IHOP parent) reported that franchisees <a href=\"https:\/\/www.nrn.com\/casual-dining\/applebee-s-will-prioritize-marketing-and-remodels-in-2025#:~:text=,the%20closure%20of%2083%20restaurants\">closed 83 units in 2024 but opened 65 new ones<\/a> \u2013 and in 2025 plan \u201c20\u201335 fewer restaurants\u201d (net shrink) by focusing on remodelled concepts. Restaurant Dive notes that <strong data-start=\"5397\" data-end=\"5422\">new prototype designs<\/strong> are boosting sales: \u201cDenny\u2019s and Wendy\u2019s are leaning on new prototypes to deliver higher sales and traffic than legacy restaurants\u201d. Similarly, Jack in the Box said it will use the capital from closed stores to speed up tech investments and reimage plans.<\/p><p data-start=\"5761\" data-end=\"5847\">Owners should learn from this by keeping their brand fresh and operations efficient:<\/p><ul data-start=\"5849\" data-end=\"7118\"><li data-start=\"5849\" data-end=\"6244\"><p data-start=\"5851\" data-end=\"6244\"><strong data-start=\"5851\" data-end=\"5888\">Invest in renovations and layout:<\/strong> Older restaurants may need physical updates to modernize the look, improve flow, or add features like dual drive-thru lanes. Applebee\u2019s is incentivizing franchisees to remodel their restaurants in 2025. Even if overall store count falls, enhancing the design and amenities of remaining locations can drive traffic.<\/p><\/li><li data-start=\"6245\" data-end=\"6576\"><p data-start=\"6247\" data-end=\"6576\"><strong data-start=\"6247\" data-end=\"6267\">Revamp the menu:<\/strong> As <a href=\"https:\/\/www.globenewswire.com\/news-release\/2025\/05\/07\/3076561\/0\/en\/Noodles-Company-Announces-First-Quarter-2025-Financial-Results.html#:~:text=Drew%20Madsen%2C%20Chief%20Executive%20Officer,through%20April.%E2%80%9D\">Noodles\u2019 CEO noted, a new menu and brand strategy can re-engage diners<\/a>. Periodically refine offerings to match customer tastes and trends (e.g. healthy options, limited-time combos).<\/p><\/li><li data-start=\"6577\" data-end=\"6802\"><p data-start=\"6579\" data-end=\"6802\"><strong data-start=\"6579\" data-end=\"6600\">Optimize formats:<\/strong> Consider smaller off-premise locations or ghost kitchens in low-density areas. On The Border was experimenting with alternative formats to boost delivery sales.<\/p><\/li><li data-start=\"6803\" data-end=\"7118\"><p data-start=\"6805\" data-end=\"7118\"><strong data-start=\"6805\" data-end=\"6828\">Value propositions:<\/strong> Consumers have become value-sensitive \u2013 chains are rolling out deals like McDonald\u2019s app discounts or Taco Bell\u2019s $5 combos. Owners should be ready to highlight value (especially for family and budget segments) through promotions or loyalty deals.<\/p><\/li><\/ul><p data-start=\"7120\" data-end=\"7361\"><em data-start=\"7120\" data-end=\"7134\">Bottom line:<\/em> Use closures as an opportunity, not just a retrenchment. By retooling your concept you can capture more business in the locations you do keep.<\/p><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-2e02fe22 e-con-full e-flex wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no e-con e-child\" data-id=\"2e02fe22\" data-element_type=\"container\">\n\t\t<div class=\"elementor-element elementor-element-53b4962 e-con-full e-flex wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no e-con e-child\" data-id=\"53b4962\" data-element_type=\"container\">\n\t\t<div class=\"elementor-element elementor-element-85ac555 e-con-full e-flex wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no e-con e-child\" data-id=\"85ac555\" data-element_type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-4aa84b2 elementor-widget elementor-widget-html\" data-id=\"4aa84b2\" data-element_type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<script src=\"https:\/\/js.hsforms.net\/forms\/embed\/8482141.js\" defer><\/script>\n<div class=\"hs-form-frame\" data-region=\"na1\" data-form-id=\"ec09b4fa-d50e-48cf-a410-2404dc095124\" data-portal-id=\"8482141\"><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6726e00d elementor-widget elementor-widget-heading\" data-id=\"6726e00d\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Control Costs in the Face of Inflation<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1485851a elementor-widget elementor-widget-text-editor\" data-id=\"1485851a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"flex flex-grow flex-col max-w-full\"><div class=\"min-h-[20px] text-message flex flex-col items-start gap-3 whitespace-pre-wrap break-words [.text-message+&amp;]:mt-5 overflow-x-auto\" data-message-author-role=\"assistant\" data-message-id=\"f67c9d0b-9d63-482b-a135-e8365b153cda\"><div class=\"markdown prose w-full break-words dark:prose-invert light\"><p>High costs have been a constant trigger for closures. Food prices passed along to restaurants rose <a href=\"https:\/\/www.foodandwine.com\/restaurant-chain-bankruptcies-2024-8766201#:~:text=Hottovy%20says%20that%20chains%20face,2\">29% since 2020 and menu prices are up 27%<\/a>, squeezing customers\u2019 willingness to spend. At the same time, labor costs have soared: the average hourly non-tipped wage in restaurants is about <strong data-start=\"7776\" data-end=\"7794\">$17.11 in 2024<\/strong>, up from $10.90 in 2019. Owners cannot roll these back, but they <em data-start=\"7900\" data-end=\"7905\">can<\/em> manage how they allocate labor and supplies.<\/p><ul data-start=\"7982\" data-end=\"9006\"><li data-start=\"7982\" data-end=\"8407\"><p data-start=\"7984\" data-end=\"8407\"><strong data-start=\"7984\" data-end=\"8006\">Staffing strategy:<\/strong> Cross-train employees so fewer people can cover more roles. Flexible scheduling (e.g. part-timers during peak only) helps keep hourly headcount in line with traffic. Since many restaurants can\u2019t cut wages now, focus on productivity: one study showed chains trimming back corporate staff after closures to cut overhead.<\/p><\/li><li data-start=\"8408\" data-end=\"8686\"><p data-start=\"8410\" data-end=\"8686\"><strong data-start=\"8410\" data-end=\"8447\">Portion and inventory management:<\/strong> Reduce waste by tightening portion control and tracking inventory closely. Higher food costs make waste much more expensive. Small changes (e.g. using standardized recipes, bargaining for bulk or local supply deals) can improve margins.<\/p><\/li><li data-start=\"8687\" data-end=\"9006\"><p data-start=\"8689\" data-end=\"9006\"><strong data-start=\"8689\" data-end=\"8709\">Energy and rent:<\/strong> Examine utility usage (LED lights, programmable thermostats) to shave bills. As noted, \u201ccommercial rents have risen at the same time\u201d as food and labor, so explore ways to lower occupancy costs (e.g. subleasing unused space, negotiating rent reductions).<\/p><\/li><\/ul><p data-start=\"9008\" data-end=\"9139\">Even if you can\u2019t control inflation, meticulous cost management can protect profitability and reduce the need for further closures.<\/p><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-685701e elementor-widget elementor-widget-heading\" data-id=\"685701e\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Leverage Digital Channels and Loyalty<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-31d0c7e1 elementor-widget elementor-widget-text-editor\" data-id=\"31d0c7e1\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"flex flex-grow flex-col max-w-full\"><div class=\"min-h-[20px] text-message flex flex-col items-start gap-3 whitespace-pre-wrap break-words [.text-message+&amp;]:mt-5 overflow-x-auto\" data-message-author-role=\"assistant\" data-message-id=\"f67c9d0b-9d63-482b-a135-e8365b153cda\"><div class=\"markdown prose w-full break-words dark:prose-invert light\"><p>The chains that are surviving and growing are doubling down on technology and marketing. Noodles\u2019 leadership highlighted how a growing loyalty program and online engagement have supported their rebound. Meanwhile, larger chains have flooded apps and social media with targeted deals. For instance, <a href=\"https:\/\/www.foodandwine.com\/restaurant-chain-bankruptcies-2024-8766201#:~:text=In%20an%20effort%20to%20tempt,priced%20as%20low%20as%20%245\">McDonald\u2019s reported heavy app usage and is launching \u201cMcValue\u201d deals, and Chili\u2019s and Taco Bell expanded value combos<\/a>. Independent owners should follow suit:<\/p><ul data-start=\"9819\" data-end=\"10785\"><li data-start=\"9819\" data-end=\"10005\"><p data-start=\"9821\" data-end=\"10005\"><strong data-start=\"9821\" data-end=\"9848\">Mobile\/online ordering:<\/strong> Ensure that your menu is available on third-party apps and your own website. Fast, reliable online ordering keeps revenue flowing even when dine\u2011in lags.<\/p><\/li><li data-start=\"10006\" data-end=\"10319\"><p data-start=\"10008\" data-end=\"10319\"><strong data-start=\"10008\" data-end=\"10043\">Promotions via apps and social:<\/strong> Use SMS or app push notifications to alert customers to specials. (\u201cWeekend fried chicken\u201d or \u201ckids eat free Monday\u201d can drive incremental visits.) The chains\u2019 focus on promotions in 2024\u201325 shows diners respond to perceived bargains.<\/p><\/li><li data-start=\"10320\" data-end=\"10592\"><p data-start=\"10322\" data-end=\"10592\"><strong data-start=\"10322\" data-end=\"10343\">Loyalty programs:<\/strong> Reward repeat customers with points or freebies. A small tie-in (e.g. free dessert after 10 visits) can build frequency. Noodles\u2019 experience suggests that sustained loyalty enrollment boosted their traffic.<\/p><\/li><li data-start=\"10593\" data-end=\"10785\"><p data-start=\"10595\" data-end=\"10785\"><strong data-start=\"10595\" data-end=\"10614\">Data analytics:<\/strong> Use sales and customer data to refine your offers. Digital orders often come with feedback loops (ratings, reviews) \u2013 leverage that to fine-tune service and menu items.<\/p><\/li><\/ul><p data-start=\"10787\" data-end=\"10953\">In short, don\u2019t leave money on the table. Digital tools and loyalty can help small chains punch above their weight and compete with bigger rivals on marketing muscle.<\/p><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6d66867e elementor-widget elementor-widget-heading\" data-id=\"6d66867e\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Think Local and Community\u2011First<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5c928b0c elementor-widget elementor-widget-text-editor\" data-id=\"5c928b0c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"flex flex-grow flex-col max-w-full\"><div class=\"min-h-[20px] text-message flex flex-col items-start gap-3 whitespace-pre-wrap break-words [.text-message+&amp;]:mt-5 overflow-x-auto\" data-message-author-role=\"assistant\" data-message-id=\"f67c9d0b-9d63-482b-a135-e8365b153cda\"><div class=\"markdown prose w-full break-words dark:prose-invert light\"><p data-start=\"10995\" data-end=\"11452\">Rhe pandemic-era trend of \u201clocal over national\u201d continues into 2025. Food &amp; Wine reports that retailers prefer regional or local concepts in malls, and consumers are \u201ctrending toward local favorites\u201d. Even big chains are adjusting by highlighting local menu items or focusing growth in existing strongholds. For a neighborhood or indie owner, this is good news: you already have the home\u2011field advantage.<\/p><ul data-start=\"11454\" data-end=\"12215\"><li data-start=\"11454\" data-end=\"11694\"><p data-start=\"11456\" data-end=\"11694\"><strong data-start=\"11456\" data-end=\"11481\">Emphasize local ties:<\/strong> Source some ingredients locally, advertise your community involvement, or feature house specials that reflect local tastes. These differentiators can be powerful marketing points against big-brand competitors.<\/p><\/li><li data-start=\"11695\" data-end=\"11973\"><p data-start=\"11697\" data-end=\"11973\"><strong data-start=\"11697\" data-end=\"11722\">Controlled expansion:<\/strong> If you franchise or have multiple units, expand thoughtfully. Rather than rushing into distant markets, grow clusters of stores that share supply chains and brand reputation.<\/p><\/li><li data-start=\"11974\" data-end=\"12215\"><p data-start=\"11976\" data-end=\"12215\"><strong data-start=\"11976\" data-end=\"12004\">Community relationships:<\/strong> Build loyalty through local partnerships (school events, co\u2011promotions with neighboring businesses, etc.). In a challenging economy, diners may favor a nearby \u201cfriendly spot\u201d over an impersonal chain outlet.<\/p><\/li><\/ul><p data-start=\"12217\" data-end=\"12354\">By playing to your regional strengths and staying close to your customer base, you can ride out industry turbulence with more resilience.<\/p><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7d5723fe elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"7d5723fe\" data-element_type=\"widget\" data-widget_type=\"divider.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-divider\">\n\t\t\t<span class=\"elementor-divider-separator\">\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-70593cb6 elementor-widget elementor-widget-heading\" data-id=\"70593cb6\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Conclusion<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4e4c671b elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"4e4c671b\" data-element_type=\"widget\" data-widget_type=\"divider.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-divider\">\n\t\t\t<span class=\"elementor-divider-separator\">\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-26bfaaba elementor-widget elementor-widget-text-editor\" data-id=\"26bfaaba\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The closures of 2025 send a clear message: <strong data-start=\"12414\" data-end=\"12461\">survival depends on agility and discipline.<\/strong> Large chains have cut costs by trimming weak units, revisiting real-estate strategies, and reinvesting in updated formats and promotions. Independent operators can apply the same principles on a smaller scale. Regularly audit your menu and store performance, keep tight control of overhead, and lean into technology and value-driven marketing. As experts note, growth should be measured and focused on core markets. <br \/><br \/>By learning from these high-profile cases, restaurant owners can avoid the same pitfalls and be better prepared to weather future headwinds. The industry may face continued pressure, but those who adapt with smart site selection, cost management, and customer engagement will be best positioned to thrive.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-31672cb6 e-flex e-con-boxed wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no e-con e-child\" data-id=\"31672cb6\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-42f535a3 elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"42f535a3\" data-element_type=\"widget\" data-widget_type=\"divider.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-divider\">\n\t\t\t<span class=\"elementor-divider-separator\">\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-4a2d0246 e-con-full e-flex wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no e-con e-child\" data-id=\"4a2d0246\" data-element_type=\"container\">\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-651e7fdb e-con-full e-flex wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no e-con e-child\" data-id=\"651e7fdb\" data-element_type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-1a94a79f elementor-widget elementor-widget-table-of-contents\" data-id=\"1a94a79f\" data-element_type=\"widget\" data-settings=\"{&quot;exclude_headings_by_selector&quot;:[],&quot;sticky&quot;:&quot;top&quot;,&quot;sticky_offset&quot;:100,&quot;sticky_parent&quot;:&quot;yes&quot;,&quot;no_headings_message&quot;:&quot;No headings were found on this page.&quot;,&quot;headings_by_tags&quot;:[&quot;h2&quot;,&quot;h3&quot;,&quot;h4&quot;,&quot;h5&quot;,&quot;h6&quot;],&quot;marker_view&quot;:&quot;numbers&quot;,&quot;hierarchical_view&quot;:&quot;yes&quot;,&quot;min_height&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;min_height_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;min_height_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;sticky_on&quot;:[&quot;desktop&quot;,&quot;tablet&quot;,&quot;mobile&quot;],&quot;sticky_effects_offset&quot;:0,&quot;sticky_anchor_link_offset&quot;:0}\" data-widget_type=\"table-of-contents.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-toc__header\">\n\t\t\t<h4 class=\"elementor-toc__header-title\">\n\t\t\t\tTable of Contents\t\t\t<\/h4>\n\t\t\t\t\t<\/div>\n\t\t<div id=\"elementor-toc__1a94a79f\" class=\"elementor-toc__body\">\n\t\t\t<div class=\"elementor-toc__spinner-container\">\n\t\t\t\t<svg class=\"elementor-toc__spinner eicon-animation-spin e-font-icon-svg e-eicon-loading\" aria-hidden=\"true\" viewBox=\"0 0 1000 1000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M500 975V858C696 858 858 696 858 500S696 142 500 142 142 304 142 500H25C25 237 238 25 500 25S975 237 975 500 763 975 500 975Z\"><\/path><\/svg>\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-11a68b50 e-flex e-con-boxed wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no e-con e-parent\" data-id=\"11a68b50\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-52ea85e1 e-flex e-con-boxed wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no e-con e-child\" data-id=\"52ea85e1\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-318be39c e-con-full e-flex wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no e-con e-child\" data-id=\"318be39c\" data-element_type=\"container\">\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-4d1558e e-con-full e-flex wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no e-con e-child\" data-id=\"4d1558e\" data-element_type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-6b132d44 elementor-widget elementor-widget-heading\" data-id=\"6b132d44\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-heading-title elementor-size-default\">Get The Latest Restaurant Data, Trends &amp; Tips<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1c32d7e9 elementor-widget elementor-widget-html\" data-id=\"1c32d7e9\" data-element_type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<script charset=\"utf-8\" type=\"text\/javascript\" src=\"\/\/js.hsforms.net\/forms\/embed\/v2.js\"><\/script>\n<script>\n  hbspt.forms.create({\n    region: \"na1\",\n    portalId: \"8482141\",\n    formId: \"1f07a5de-4958-4b48-a370-e0e1b24a97a3\"\n  });\n<\/script>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-3e1c9f33 e-con-full e-flex wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no e-con e-child\" data-id=\"3e1c9f33\" data-element_type=\"container\">\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>6 Biggest Lessons From Recent Restaurant Chain Closures May 13th, 2025 The restaurant industry faces another wave of shake\u2011outs in 2025 which continues the trend from 2024 of large restaurant chain cutting locations and filing bankruptcies. Applebee\u2019s, Denny\u2019s, Wendy\u2019s, Rubio\u2019s, Outback Steakhouse, and Hooters have all closed locations this year or plan to do so in 2025. More recently, Tex\u2011Mex chain On The Border filed Chapter 11 in March 2025 and immediately shut dozens of locations. Fast\u2010casual Noodles &amp; Company announced plans to close 13\u201317 company-owned and 4 franchised stores (17\u201321 total) in 2025, even as same\u2010store sales were rising. Jack in the Box said it would close 150\u2013200 restaurants deemed \u201cunderperforming\u201d and often decades old. These high\u2011profile cuts, driven by weak traffic, high costs and legacy leases, underscore that shutting down low\u2011performing locations and adapting strategy is essential. The lessons below distill what independent and franchise owners can learn from these cases. \u00a0 Focus on Unit Economics: Cut Losses Early Chains overwhelmingly shut stores that aren\u2019t pulling their weight. Denny\u2019s CEO noted that many of the 88 closures in 2024 (and the 70\u201390 planned in 2025) had average unit volumes below $1.1\u00a0million. Jack in the Box called out \u201cdecades old\u201d sites with weak sales in its block\u2010closure plan. In practice, owners should monitor key metrics (sales per store, traffic, profit margins, etc.) and be ready to close or relocate outlets that fall consistently below thresholds. Key signals to watch: declining same-store sales, low AUV, negative cash flow, or exorbitant rent in a given location. Action steps: Run profitability analyses by location. If a store loses money or ties up capital, consider closing it and redeploying resources. Denny\u2019s approach shows that closing enough weak units can raise average volume at remaining stores. Real-world outcome: When chains concentrate on stronger locations, sales and traffic can rebound. (Restaurant Dive notes Denny\u2019s and Wendy\u2019s new prototype stores are generating much higher traffic and sales than their old units.) Be Smart About Location and Leases Closures often trace back to poor real estate decisions. In the case of On The Border, bankruptcy filings revealed that 113 lease obligations were dragging the company down, with roughly $11.9 million of 2024 rent costs coming from underperforming stores. Red Lobster and other chains have cited onerous long-term leases as a key drag. Owners should therefore prioritize sites with sustainable economics: look for locations with strong traffic or captive customer bases, and be cautious about high-rent malls or overly competitive areas. Lease flexibility: Negotiate shorter or performance-based leases when possible. Avoid taking on large fixed rent for a location without proven demand. If sales falter, a flexible lease (or sublease options) can let you exit without years of losses. Market analysis: Study local demographics and trends. Food &amp; Wine notes that many consumers now prefer local\/regional brands over national chains. If expanding, focus on core or culturally receptive markets rather than \u201cspreading too thin.\u201d Chains like Portillo\u2019s and Buddy\u2019s Pizza succeed by staying near home. Portfolio balancing: Maintain a healthy mix of high\u2010traffic sites (e.g. main streets, popular shopping centers) and leaner formats (like ghost kitchens or smaller footprints) to hedge risk. Lesson: Don\u2019t overextend. On The Border\u2019s example shows that piling up leases in bad locations can sink a brand. Wise owners will regularly audit locations and cut or renegotiate any that can\u2019t eventually break even. Adapt Brand and Operations Rather than stagnating, chains are often using closures as a springboard for reinvestment. Dine Brands (Applebee\u2019s\/IHOP parent) reported that franchisees closed 83 units in 2024 but opened 65 new ones \u2013 and in 2025 plan \u201c20\u201335 fewer restaurants\u201d (net shrink) by focusing on remodelled concepts. Restaurant Dive notes that new prototype designs are boosting sales: \u201cDenny\u2019s and Wendy\u2019s are leaning on new prototypes to deliver higher sales and traffic than legacy restaurants\u201d. Similarly, Jack in the Box said it will use the capital from closed stores to speed up tech investments and reimage plans. Owners should learn from this by keeping their brand fresh and operations efficient: Invest in renovations and layout: Older restaurants may need physical updates to modernize the look, improve flow, or add features like dual drive-thru lanes. Applebee\u2019s is incentivizing franchisees to remodel their restaurants in 2025. Even if overall store count falls, enhancing the design and amenities of remaining locations can drive traffic. Revamp the menu: As Noodles\u2019 CEO noted, a new menu and brand strategy can re-engage diners. Periodically refine offerings to match customer tastes and trends (e.g. healthy options, limited-time combos). Optimize formats: Consider smaller off-premise locations or ghost kitchens in low-density areas. On The Border was experimenting with alternative formats to boost delivery sales. Value propositions: Consumers have become value-sensitive \u2013 chains are rolling out deals like McDonald\u2019s app discounts or Taco Bell\u2019s $5 combos. Owners should be ready to highlight value (especially for family and budget segments) through promotions or loyalty deals. Bottom line: Use closures as an opportunity, not just a retrenchment. By retooling your concept you can capture more business in the locations you do keep. Control Costs in the Face of Inflation High costs have been a constant trigger for closures. Food prices passed along to restaurants rose 29% since 2020 and menu prices are up 27%, squeezing customers\u2019 willingness to spend. At the same time, labor costs have soared: the average hourly non-tipped wage in restaurants is about $17.11 in 2024, up from $10.90 in 2019. Owners cannot roll these back, but they can manage how they allocate labor and supplies. Staffing strategy: Cross-train employees so fewer people can cover more roles. Flexible scheduling (e.g. part-timers during peak only) helps keep hourly headcount in line with traffic. Since many restaurants can\u2019t cut wages now, focus on productivity: one study showed chains trimming back corporate staff after closures to cut overhead. Portion and inventory management: Reduce waste by tightening portion control and tracking inventory closely. Higher food costs make waste much more expensive. Small changes (e.g. using standardized recipes, bargaining for bulk or local<\/p>\n","protected":false},"author":3,"featured_media":9374,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[90],"tags":[],"taxonomy\/team":[],"class_list":["post-9373","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-en"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>6 Biggest Lessons From Recent Restaurant Chain Closures - Snappy<\/title>\n<meta name=\"description\" content=\"Discover 6 key lessons restaurant owners can learn from recent U.S. restaurant chain closures in 2025. 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