It’s increasingly common to hear about restaurant closings, but the news is often hardest when an established restaurant closes. These restaurants are more than just places to eat; many have become an important part of their communities, tied to years of memories and local traditions.
Even long-established chains are not immune to this troubling trend. In recent years, due to rising costs and increasing debt, several major catering brands have gone bankrupt on a large scale, and some have even filed for bankruptcy.
Founded in 1972, Houlihan’s is a casual American restaurant and bar chain that was once nationally renowned. The brand currently has 22 stores nationwide, according to its website.
While that number is still impressive, Houlihan’s has closed several restaurants over the past few years, significantly shrinking its footprint in several states.
At least five Houlihan stores have closed in recent months. Despite the wave of closures, parent company Landry’s, Inc. has yet to make a public statement about the closures; instead, operators have chosen to post paper notices at restaurant entrances.
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Noblesville, Indiana: Closed on January 1, 2026 (source:current publication)
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Hershey, Pennsylvania: Closed on December 31, 2025 (source:abc27)
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Garland, Texas: Closed on August 24, 2025 (source:cultural map)
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Long Island, New York: Closed on January 1, 2026 (source:Great Long Island)
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Upper Arlington, Ohio: Closed on January 1, 2026 (source:614 now)
Houlihan’s financial challenges date back several years. In 2019, the brand’s then-parent company, HRI Holding Corp., filed for bankruptcy in the District of Delaware Bankruptcy Court under Chapter 11 of the U.S. Bankruptcy Code, with assets and liabilities ranging from $50 million to $100 million, as stated in the filing.
The company cited an expiring loan and “unsustainably high occupancy costs” at many locations as the main causes of its debt. The purpose of the bankruptcy filing was to facilitate a sale that resulted in an agreement with Landry’s, Inc. to purchase the assets for $40 million in cash.
More restaurant closures:
At that time, HRI operated 47 restaurants in 14 states, including 34 Houlihan restaurants. However, the bankruptcy filing does not include the other 21 Houlihan’s franchise restaurants.
According to Nation’s Restaurant News, HRI reported fiscal 2019 revenue of $202 million and earnings of approximately $9 million.
Landry’s, Inc., owner of nearly 50 well-known restaurant brands, including Landry’s Seafood, Saltgrass Steak House, Bubba Gump Shrimp Co. and Mastro’s Restaurant, acquired Houlihan’s with the goal of preserving and growing the brand’s legacy.
Houlihan’s isn’t the only chain facing closure. The restaurant industry as a whole has been grappling with shifting consumer habits, rising costs and ongoing economic uncertainty. As these pressures intensify, even some of the largest and best-known chains have been forced to close stores nationwide.
Inflation has played a large role in the industry’s woes. According to recent data from the U.S. Bureau of Labor Statistics, food prices outside the home increased 3.7% in the 12 months ending in September 2025.
According to the National Restaurant Association, food and labor costs for the average restaurant have each increased about 35% over the past five years.
To offset these higher costs, menu prices increased an average of 31% between February 2020 and April 2025, according to the U.S. Bureau of Labor Statistics.
According to Circana, traffic across the foodservice industry fell 1% in the quarter ending June 2025 as prices increased.
“This poses a significant challenge to restaurants as home-cooked meals directly displace demand from dining establishments, leading to lower revenue and footfall as demand shifts to grocery stores,” said Sujeet Naik, analyst at Coresight Research.
Despite ongoing challenges, the industry has shown signs of resilience. According to the Bureau of Economic Analysis, spending on food and beverage establishments reached a record annual rate of approximately $1.25 trillion in the second quarter of 2025.
“Despite the many headwinds facing the industry and the broader economy, actual spending at restaurants and foodservice establishments remains slightly above trend, which is a very encouraging sign,” said industry experts at the National Restaurant Association.
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This article was originally published by TheStreet on January 11, 2026, and first appeared in the Restaurant section. Click here to add TheStreet as your preferred source.