When a restaurant you frequent closes, it affects you more than just widespread closures (dozens or even hundreds of locations in large chains).
When I take my monthly trip to Alexandria, Virginia, the Starbucks next to my hotel is closed. This makes getting coffee less convenient and adds maybe five minutes to my walk to the office.
It was a small thing, and to make matters worse, my local coffee shop (the only non-chain coffee shop in our area at the time) closed without notice. This affects my daily life as I often bring my laptop there to work.
This minor inconvenience reflects a broader trend: Datassential data confirms that local closures, while fewer than big chains, can have a huge impact on daily life.
However, despite the attention these local closures have raised, Total U.S. restaurant closures in 2025 are actually relatively low.
The total number of closings has dropped below 1,000 this spring, according to the Datassentials sales intelligence platform. That’s the lowest number in at least seven years, showing that national trends don’t always match the perceptions generated by your community’s favorites.
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Datassential reports: “In April 2025, the latest month for which restaurant data is available in the U.S., total restaurant closures were just 886, an 82% decrease from the number of closures recorded in January 2018. This is the most significant decrease in the 2025 restaurant closure statistics to date.”
If current trends continue, we may see more strategic closures of casual dining chains in 2026, while fast-casual and QSR brands with strong digital ordering and delivery programs may continue to expand.
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Starbucks closure Approximately 500 North American cafes as part of a restructuring plan, according to transcripts of its fourth-quarter earnings call.
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Danny’s closure 70-90 locations TheStreet’s Fernanda Tronco reports that this will be achieved by 2025 as part of operational optimization.
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papa john closure 62 locations in the United States According to TheStreet (part of 173 closures globally).
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jack in the box reported Closing approximately 80-120 restaurants by the end of 2025 (with plans to go further into 2026), according to a press release.
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at the border According to USA Today , 77 restaurants have closed due to bankruptcies.
Wendy’s and Starbucks are strategically closing hundreds of underperforming stores to strengthen remaining restaurants, improve the customer experience and streamline operations.
“We are working with our U.S. franchisees to evaluate each underperforming restaurant in our system from a financial and customer experience perspective and develop action plans to improve both areas,” Wendy’s interim CEO Ken Cook said on the third-quarter earnings call. “For some locations, we will need to make operational changes or deploy technology. For other locations, we are improving productivity by adjusting operating hours to better meet demand, particularly in the morning and late night.” Wendy’s interim CEO Ken Cook said on the third-quarter earnings call.
When it can’t fix the problem, the chain’s solution will be to close restaurants that have been underperforming. These actions will strengthen the system and allow franchisees to invest more capital and resources in their remaining restaurants.
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Wendy’sHundreds of underperforming U.S. restaurants to closewhich will begin closing at the end of 2025 and last until 2026 as part of a strategic review to strengthen the system. Interim CEO Ken Cook said mid-single digit percentage One of about 6,000 U.S. stores could be closed About 200-350 times closed Expected to be 2026.
Starbucks typically conducts annual audits of its stores. New CEO Brian Niccol commented on these efforts during the company’s fourth-quarter earnings call.
“In Q4, we took decisive action on multiple fronts to accelerate our return to Starbucks. This included completing an evaluation of our coffeehouse portfolio and identifying closure locations, as well as streamlining our broader support organization into one that is streamlined and better aligned with our future growth priorities,” he shared.
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Starbucks: While the company’s closing plans span earlier years, Starbucks has roughly closed 500 locations in North America The company is in the midst of an efficiency overhaul and further closures may last until early 2026, depending on performance and strategy, the company said in a letter from Niccol.
Salad and Go closed 41 stores in Texas in September 2025.
“Now, the fast-food salad chain revealed on January 7 that it will exit the Texas and Oklahoma markets, closing its remaining 25 restaurants in Texas and its final seven restaurants in Oklahoma,” TheStreet’s Kirk O’Neill reports.
Salad and Go will continue to operate 70 stores in Arizona and Nevada, with 63 in Arizona and seven in Nevada.
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Salad ready to go Closing all Stores in Texas and Oklahoma (32 total) will be closed on January 11, 2026and moved its headquarters back to Arizona to refocus on its core markets, QSR Magazine reported.
Denny’s has been closing stores since 2024. This situation continues in 2025, with planned closures being pushed into 2026.
Restaurant Dive reports: “Denny’s stores in the bottom quintile have average unit sales of $1.1 million, less than half the average unit sales of stores in the top quintile of $2.9 million. According to investor presentations, the lowest-performing stores have average EBITDA of less than $25,000, while the top restaurants have average EBITDA of $250,000 to $350,000.”
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Danny’s has been closing underperforming locations.roughly there are Expected to close 150 restaurants by the end of 2025 As part of the reorganization – Impact on streamlined operations in 2026. The company is also being taken private in a deal expected to close in early 2026, which could influence further location decisions.
Jack in the Box will also begin closing stores in 2025 and will continue until 2026. The company also sells the Del Taco brand.
“Right now, the fast-food giant is in ‘survival’ mode as it pays down debt and gets back to fundamentals,” Nick Setyan, managing director and senior equity research analyst at Mizuho Americas, told Restaurant Dive.
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It’s worth noting that any chain as big as Starbucks will close some restaurants every year due to demographic changes, leasing issues and other issues. This is not exactly the same as a restaurant closing due to poor overall brand performance.
Some chains are growing too fast.
“Growth for the sake of growth is a dangerous strategy for the restaurant industry. When you lose focus on unit economics, closures will follow,” Maria Thompson, hospitality analyst at Culinary Insights Group, told Alibaba.
For many fast-casual brands, weakening consumer patterns and the economy have also taken a toll.
“They’re trying to target the average middle-class consumer,” Ernest Baskin, associate professor of food marketing at Saint Joseph’s University, told CNN. “When consumers start looking at their budgets, the middle shrinks.”
People want quality food quickly and cheaply.
“In a world where time is of the essence, people want to get things quickly and at an affordable price,” Raymond James analyst Brian Vaccaro told CNN.
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This article was originally published by TheStreet on January 10, 2026, and first appeared in the Restaurant section. Click here to add TheStreet as your preferred source.