*Throughout 2025, Americans voiced concerns about affordability, yet costs kept climbing. Now, diners face difficult decisions about their eating-out budgets.
When restaurant spending gets squeezed, businesses feel the impact. According to Finance Bizz, the following 13 chains face serious bankruptcy risks or potential closures in 2026.
1. Long John Silver’s
This seafood chain has plummeted from more than 1,500 locations to fewer than 500 restaurants today. Over 150 stores closed in just three years. Their 2025 logo rebrand added chicken imagery, suggesting a concerning departure from their core seafood identity.
2. TGI Fridays
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The casual dining establishment declared bankruptcy in late 2024 due to capital structure problems. Massive closures left under 100 U.S. locations by 2025. The surviving 79 American restaurants now emphasize house-made sauces and hand-cut steaks.
3. Outback Steakhouse
The Australian-themed steakhouse dropped from 750 locations to under 670. Parent company Bloomin’ Brands announced over 40 closures in October 2025, with roughly half due to expiring leases.
4. Jack in the Box
A disastrous Del Taco purchase resulted in losses exceeding $400 million. The burger chain’s “Jack on Track” recovery plan involves shuttering up to 200 outlets and halting shareholder dividends. The company finished 2025 carrying $1.7 billion in debt and one of the industry’s worst debt-to-cash ratios.
5. Wendy’s
The fast food company announced hundreds of closures extending through 2026, following 140 earlier location shutdowns. CEO Ken Cook blamed underperforming stores for not enhancing brand value, though declining U.S. sales and net income suggest deeper troubles.
6. Noodles & Company
Facing falling revenue, Noodles & Company plans to shutter 12 to 17 locations in 2026. Attempts at menu revamps and price increases led to temporary sales gains, but overall traffic remains low. The chain has also been threatened with delisting from Nasdaq twice.
7. Starbucks
Starbucks announced a $1 billion restructuring plan, including closing hundreds of stores, laying off around 900 non-retail employees, and returning operations staff to offices. Same-store sales had declined for six consecutive quarters, and rising coffee prices make cost-conscious consumers rethink purchases.
8. Denny’s
Denny’s closed 70 to 90 locations in 2025 and sold itself to private equity. Sales at locations open at least a year were down 2.9% by Q3 of 2025, suggesting the diner-style chain may continue to shrink in 2026.
9. Hardee’s
Private equity acquisitions and unpaid royalties of over $6.5 million have put Hardee’s in a precarious position. Legal disputes with franchisees and declining sales could threaten the brand’s survival.
10. Boston Market
With only about 15 locations remaining from over 1,200, Boston Market has faced repeated bankruptcy filings. Owner Jay Pandya was banned from filing in 2024, and 95% of restaurants have closed since 2022.
11. Smokey Bones
Though profitable, 15 locations closed in 2025, with another 19 converted into Twin Peaks. The focus on expensive entrees such as steak and brisket could make 2026 a tough year.
12. On the Border
Last year, the Tex-Mex restaurant filed Chapter 11 bankruptcy after closing 40 locations. High lease costs, labor expenses, and food prices created a “severe liquidity crisis.” Around 60 locations remain.
13. Bar Louie
Bar Louie filed for bankruptcy in both 2020 and 2025. Now with roughly 40 locations, the chain has under $10 million in assets against debts of $50–100 million, leaving its future uncertain.
MORE NEWS ON EURWEB.COM: Jack in the Box Closes 72 Restaurants Amid Rising Beef Costs
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