Restaurant Chains Had a Rough 2024: Closures and Changes

2024 wasn't a great year for many restaurant chains. With consumers cutting back on dining out due to inflation, sales took a hit. This led to some big names shutting down underperforming locations. Wendy's, for instance, closed 140 restaurants by the end of the year. Their CEO, Kirk Tanner, said they aimed to improve the overall footprint by getting rid of low-performing spots. Dine Brands, which owns Applebee's and IHOP, also closed a bunch of spots. Applebee's saw a drop in sales over six straight quarters, leading to around 36 closures. Denny's wasn't doing too hot either. They shuttered about 50 locations in 2024 and plan to close another 100 by 2025. They believe this will boost their same-store sales and annual unit volumes.

TGI Fridays hit a rough patch too. Before filing for bankruptcy, they closed 86 restaurants, reducing their footprint to around 160 open locations worldwide. Red Lobster faced similar troubles, shutting down more than 120 restaurants. Fast-casual chain Noodles & Co. also announced closures—about 20 locations after reviewing their entire footprint. They're working on improving operations and finances, but it'll take time. Outback Steakhouse got hit as well, but specific numbers weren't mentioned. The restaurant industry saw a surge in bankruptcies in 2024, nearly triple the number in 2020. With the rise of fast-casual chains like Chipotle and Sweetgreen, many diners opt for convenience and quality over traditional casual-dining chains.

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