These Restaurant Chains Are Expected To Close Locations In 2026

The bad news is that there are a lot of restaurant chains closing locations in 2026, but the good news is that most of them aren't closing down forever — at least not yet. It's been a rough few years for restaurants, and many chains are making changes in 2026 to try to keep themselves afloat. It's certainly a change or die situation for restaurants right now, with the price of food up a third since 2019 and customers still attempting to stay within budget.

While restaurants are making changes to marketing, menus, and technology, many are also shutting down underperforming locations altogether. In fact, Black Box Intelligence (via Restaurant Dive) estimates that 15% of existing restaurants will end up closing their doors in 2026, with those numbers especially affecting full-service restaurants. Although, if all goes well, cutting off the underperforming units should strengthen these brands. Fingers crossed.

Many restaurants on our list that are closing locations in 2026 are well-known. For some, the closures represent as few as 4% of their U.S.-based restaurants. For others, the cuts represent almost a full 100%. We've included 10 on our list, but there are others like Torchy's Tacos, Joe's Crab Shack, and Houlihan's Restaurant that could be included. Hopefully, your local favorites will survive the cuts, but chances are you'll see some familiar restaurant chain locations close their doors in 2026, especially among these 10.

Wendy's

Wendy's seems to be the type of place that should always exist, right? After all, it's been open since 1969. If you don't want burgers, there's a little something for everyone on the menu, including chicken options, baked potatoes, chili, and salads. And nobody else has Frosties. But somehow, the lines are never long at Wendy's as they are at other nearby fast food restaurants (at least not in out experience). So, maybe it's not so surprising that Wendy's has plans to close hundreds of its locations in 2026.

As the company reported, same-store sales dropped 10% globally for Wendy's during the last quarter of 2025, with a more intense drop in the U.S. Before 2025 was over, it had already closed down 28 restaurants. While Wendy's started 2026 with nearly 6,000 units in the U.S., the plan was to close a percentage of its remaining restaurants during the first half of the year. In February 2026, leading executives confirmed that the plan is to shut down 5% to 6% of its underperforming locations. This would translate into around 300 units closing their doors in 2026. Interestingly, the chain is growing outside the U.S., with plans to open 60 new outposts in Mexico.  

Wendy's has a plan to pull itself back out of its slump. Customers are looking for long-term deals. So, that's what Wendy's is betting on for 2026 with the introduction of a three-price-tier value menu.

Papa John's

At the beginning of 2025, Papa John's proudly opened its 6,000th restaurant worldwide. This seemed odd for a restaurant that had already seen a decline in same-store sales the year before, while the sales continued to decline in 2025. Sadly, when people think about ordering pizza in the U.S., they're not opting for Papa John's as much as they used to, even with free garlic dipping sauce and pepperoncini peppers on the side to tempt them. At the end of 2025, there were around 3,200 Papa John's locations in the U.S., but that won't be true by the end of 2026 as the closure of hundreds of its restaurants in North America is on the horizon.

Once again, the underperforming locations are on the chopping block. Basically, the company is identifying the ones that can't fulfill the brand's requirements and those that aren't meeting certain goals for annual sales. The higher cost of food and the need to pay employees more certainly isn't helping the chain's bottom line. Plans are already underway to close 200 locations in 2026 and another 100 in 2027, for a grand total of 300. When the closures end, we'll be left with around 9% fewer units than before.

Papa John's has other changes in mind, too. Like many other chains, it's seeking to streamline and simplify its menu and introduce yummy-looking pan pizza. However, it's also planning to cut jobs at the corporate level.

Pizza Hut

If it's been a while since you ordered from Pizza Hut, you shouldn't be surprised that the chain is planning to close 250 U.S.-based locations in 2026. While some seem to be doing just fine, employees on social media have been reporting having their hours cut because of sales declines. Overall, same-store sales in the U.S. were down 5% in 2025.

The chain will still have over 6,700 locations open in the U.S. after it closes 250 of its restaurants. Plus, it will still have around 20,000 locations open worldwide. The plan is to open more international outpost, and same-store sales are actually up in some regions of the world. Even with only about 3% of its locations closing in the U.S., it's certainly not insignificant. Although, there are rumors that Pizza Hut's parent company, Yum, may be thinking about selling the chain.

There are lots of changes planned for Pizza Hut in 2026 beyond closure of underperforming locations. Its Hut Forward plan includes improving technological aspects and changing its marketing strategy. However, we have to agree with the customers who don't find the pizza at Pizza Hut to be the same as it used to be, and we especially miss its dine-in options and pizza buffets of yesteryear. So far, the chain doesn't seem to have realized that the nostalgia factor can be important when it comes to getting customers back in the door, too.

Jack in the Box

While Jack in the Box is celebrating its 75th anniversary in 2026, it's also finding it necessary to continue trimming its numbers. While the chain planned to close 200 locations in 2025, it had only closed 72 by the end of the year. So, it looks like 50 to 100 more will shutter in 2026 instead. So, it may not ultimately end up being the full 200 that was originally planned. As the brand closed the year with around 2,100 restaurants, losing another 100 would put it closer to the 2,000-location range.

There are several reasons for the closures. First of all, the high cost of beef has translated into fewer customers. Also, the company had to repay a part of its massive $1.7 billion debt. Its sales dropped over 7% in the last quarter of 2025, and it lost $80.7 million by the end of the fiscal year.

Closing underperforming stores is just the tip of the iceberg when it comes to planned changes to improve financial numbers for the chain. There are also plans to revamp the restaurant's image as well as make some technological changes. With a majority of the locations these days being in California and Texas and 27 states not even having one, many of us might not even notice the closures. Nobody wants to see a restaurant with 75 years of history go under, but a Jack In The Box comeback might be tough.

Denny's

Because of its reputation as a 24-hour restaurant that's been open since 1953, many of us have fond memories of late nights at Denny's drinking coffee and eating Grand Slam breakfasts. Unfortunately, the chain has been slowly closing units over recent years. In late 2025, there was an announcement that Denny's would be selling its remaining 1,300 plus locations, with the deal finally going through in January of 2026, turning Denny's into a privately-owned restaurant that's no longer on the stock market. With new ownership come plans to continue to close underperforming restaurants.

A report released in November 2025 revealed that Denny's same-restaurant sales dropped 2.9%. The most recent closures of underperforming restaurants started in 2023. In 2024, the chain announced that it planned to close around 150 underperforming restaurants, starting with 88 stores in 2024. The plan continued in 2025, and we will probably see a similar scenario in 2026 as some stores have already closed recently. So, while you still might find that your favorite location is still on the chopping block in 2026, hopefully, that's the end of closures for a while.

Denny's plans some other changes as well in 2026. First of all, there's now a 10-item all-day value meal deal called Slammin' Meal Deals as well as new and returning menu items. Additionally, the CEO left in February, which is certain to shake things up a bit.

Red Robin

The bad news is that there are some Red Robin locations that will be closing, but the good news is that the list of closures has gotten shorter. So, if you tend to get a hankering for Red Robin's gourmet and often-messy burgers, you may not be losing the Red Robin nearest to you. However, it's hard to know since Red Robin closures seem to happen abruptly.

After Red Robin found itself in the red at 70 locations in 2024, it started making plans to close down those restaurants between 2025 and 2030. As 2025 progressed, it closed down 23 locations. However, it also managed to turn its earnings back around. As of 2026, Red Robin has decided that approximately 20 restaurants that had been doing poorly won't be closing after all since the performance has improved and the company thinks they're on an upward swing that can get them back to the same level as the units that are doing well. However, that still leaves 27 left to close down in 2026 and the upcoming years. With only around 470 restaurants currently operating, future closures mean that the number of remaining units will be closer to 440.

Some of the things that seem to bring customers back include new value meals and Big Yummm burger menu. Plus, the brand is doing more targeted marketing, reducing administrative costs, upgrading technology, and utilizing AI to create more efficiencies.

Various Bloomin' Brands restaurants (Carrabba's Italian Grill, Bonefish Grill, Outback Steakhouse)

Bloomin' Brands has been hemorrhaging restaurants for years now. A total of 43 locations closed in 2017, while 41 closed in 2024. So, fans of Outback Steakhouse, Bonefish Grill, and Carrabba's Italian grill won't be too surprised to see more of the brand's restaurants closing in the next few years.

In 2025, Bloomin' Brands shut down 21 locations and announced it would be closing around 22 additional restaurants in the future. While it didn't say exactly how many of each of the three chains would be closing, it has indicated that the date of closures for these restaurants will coincide with the ending of the lease for each location, with some expected to shut down in the distant 2029. Regardless, that will still leave Carrabba's with around 200 units, Bonefish somewhere in the 100s, and Outback with approximately 600 restaurants.

Bloomin' Brands has made other changes beyond closures. It laid off 100 company employees, shortened the menus, and there are some new marketing plans that include appealing to younger generations. The good news is that all brands have seen upsurge in sales, with Carrabba's seeing the most improvements.

Noodles & Company

Noodles & Company is another chain that has already been closing its locations and plans to make even more cuts in 2026. It shut down a total of 42 restaurants in 2025, leaving 423 open. However, at the beginning of 2026, the company decided it needs to eliminate another 30 to 35 restaurants, which means that the total number of open locations will be closer to 390.

The decision to shut down more restaurants came after successful 2025 closures. When the company was able to focus remaining resources on the places that were doing better rather than having to bolster underperforming ones, the remaining ones were able to grow in a positive direction. In fact, Noodles & Company announced that in the last quarter of 2025 the sales increased for around 7%. So, Noodles & Company is hoping to see the same types of improvements in 2026 after it shuts the door on other underperforming locations.

Things haven't been looking great for the company on the stock market either. Because the company's stock was below $1 per share, it had to do a reverse stock split in February of 2026, turning eight of its current shares into one share. One investor is also trying to convince the company to sell many company-owned units in order to settle its debt.

Bahama Breeze Island Grille

The only restaurant chain on our list that will mostly disappear in 2026 is Bahama Breeze Island Grille. In the first part of 2025, there were 45 locations in 15 states; at the beginning of 2026, there were only 28 open; and by the end of 2026, there will probably be only several of them left. The process includes a conversion that's expected to be fully completed by mid-2027. So, you might be able to get in a few more good Caribbean-influenced meals, drinks, and memories before it's gone forever.

The reason the chain is closing is because it just wasn't doing as well as some of the other brands its parent company, Darden Restaurants, owns. Based on Technomic's analysis, CNN reported that Bahama Breeze started seeing sales declines as large as 7.7% in 2024. Apparently, 2025 closures didn't help the chain's bottom line.

Luckily, many of the buildings that once housed a Bahama Breeze won't stay empty, though. Instead, Darden Restaurants plans to convert 14 establishments into one of its sister brands by September 2027. However, the other 14 locations will close permanently in April 2026. Other brands that Darden owns include Olive Garden, LongHorn Steakhouse, Yard House, Ruth's Chris Steak House, Cheddar's, The Capital Grille, Chuy's, Seasons 52, and Eddie V's. Thus, you might end up benefiting from this transition after all.

Smokey Bones

Finally, we have Smokey Bones on the list. This chain — known for its delicious hickory-smoked barbecue — once had 120 restaurants, but it's dwindled so much that you might've thought it closed long time ago. We certainly thought it was long gone after 2007, when 56 units across the U.S. were shut down, leaving only 73 open. In 2025, the problems continued and the company announced that it's closing 15 of its locations that aren't performing well. It was also reported that 19 Smokey Bones locations would be converted into Twin Peaks restaurants that operate under the same company. Essentially, this will leave 11 restaurants open, though, at the time of writing, the official website lists 20 operating locations.

The future is not looking bright for Smokey Bones as Twin Hospitality, the brand's parent company, filed for bankruptcy in January 2026. Unsurprisingly, this was followed by closure of several restaurants, including the outposts in Pittsburgh's Robinson Township and even its flagship location in Orlando, Florida. Based on this, we could expect more possible closures or conversions into more profitable Twin Peaks units in the future.

As for the locations that stayed open, the company plans to use the franchise model that has worked with other brands to hopefully keep the chain alive. Smokey Bones also got a new president, who has experience with other well-known chains like Texas Roadhouse.

Recommended