Wendy’s, Denny’s, Red Lobster shut locations in 2024 

A harsh yr for the eating institution sector led a number of chains to close underperforming locations in 2024, as they try to reinforce their gross sales within the years forward.

Inflation- fatigued clients drew again their eating institution investing in 2024 and quite appeared for value and low cost charges after they did choose to eat exterior their houses. Overall united state eating institution verify outs succumbed to the preliminary 10 months of the yr, in accordance with info from sector tracker Black Box Intelligence.

The lower in eating institution investing led to weak gross sales and an increase in insolvencies for the sector. Twenty- 6 eating institution enterprise declared Chapter 11 insolvency protection in 2024, virtually triple the number of filings in 2020, all through the elevation of the pandemic.

With couple of exemptions, casual-dining chains particularly had a tough time to attract in customers, together with within the sector’s difficulties which have really put in as a result of theGreat Recession Since the surge of fast-casual chains, a number of eating places have really chosen the profit and guaranteed high-quality of avid gamers like Chipotle or Sweetgreen over the casual-dining chains that managed within the earlier years.

Here are the eating institution chains that exposed closures in 2024:

In late October, Wendy’s introduced it might shutter 140 underperforming areas by the top of the yr, along with the roughly 80 closures it had within the first three quarters.

Executives made the choice to prune some outdated eating places that had annual unit volumes of about $1 million every to enhance the corporate’s total footprint.

Despite the closures, the corporate expects to finish 2024 with an unchanged restaurant rely, because of its new restaurant openings, Wendy’s CEO Kirk Tanner instructed buyers on the corporate’s third-quarter earnings convention name.

In May, Applebee’s guardian, Dine Brands, mentioned it deliberate to shutter between 25 and 35 of the model’s U.S. areas. By late September, Applebee’s world unit rely had fallen by 36 areas in contrast with the year-ago interval.

Applebee’s same-store gross sales have declined for the final six straight quarters, in accordance with firm filings.

Dine Brands, which additionally owns IHOP, has closed extra shops than it has opened yearly since 2016, aside from 2022.

Denny’s closed about 50 areas in 2024 and plans to shutter an extra 100 eating places by the top of 2025. Including this yr’s closures, the 24-hour diner chain nonetheless has roughly 1,300 open areas.

The eating places marked for closure are within the decrease third of the chain’s performers, with annual unit volumes of $1.9 million to $2 million, executives mentioned on the firm’s investor day in October. Once these eating places shutter, Denny’s expects that each its same-store gross sales and annual unit volumes will enhance. In its newest quarter, the chain’s same-store gross sales had been roughly flat.

After 2025, Denny’s plans to open between 45 and 50 internet new areas yearly.

In November, TGI Fridays joined the slew of restaurant corporations that filed for chapter safety. But earlier than it filed for Chapter 11, it shuttered 86 eating places, beginning with 36 closures in January and one other 50 in late October.

The final spherical of closures took the chain’s footprint right down to roughly 160 open areas worldwide. But the rely might dwindle extra. A chapter court docket in Texas will decide TGI Fridays’ future, which might imply closures for the chain.

Red Lobster completely shuttered greater than 120 eating places in 2024.

The seafood chain closed roughly 100 areas earlier than it filed for Chapter 11 chapter safety in May. Before it exited chapter with a brand new proprietor and CEO, the corporate rejected the leases of one other 23 eating places.

But with 2024 now within the rearview mirror, Red Lobster is hoping {that a} comeback — with no extra restaurant closures — is in its future.

Fast-casual chain Noodles & Co. introduced in August that it might shut roughly 20 areas after reviewing its whole 475-restaurant footprint.

The evaluate was a part of the corporate’s efforts to enhance its operations and funds after a rocky few years. Noodles & Co. has additionally been overhauling its menu, slicing objects that don’t promote and including new entrees which may enchantment to extra clients.

But the turnaround will take time. In its newest quarter, the corporate mentioned same-store gross sales fell 3.3%.

Bloomin’ Brands, the guardian firm of Outback Steakhouse, Carrabba’s Italian Grill and Bonefish Grill, shuttered 41 underperforming eating places in 2024.

The closures affected older areas with leases relationship again to the Nineteen Nineties and early 2000s, executives mentioned on the corporate’s earnings convention name in February. To make the choice, the corporate weighed the areas’ gross sales and site visitors, in addition to the price of investments to enhance the areas. Most of the closures had been Outback areas.

Like many different casual-dining corporations, Bloomin’ has struggled to develop gross sales in current quarters. Its U.S. same-store gross sales fell 1.5% within the third quarter.