Hundreds of restaurant chains face closure in 2025, with some operators forced to file for Chapter 11 or Chapter 7 bankruptcy protection to liquidate assets.
In some cases, restaurant chains have closed all of their locations without filing for bankruptcy. That’s the case for K&W Cafeterias, an 88-year-old casual dining chain that operates eight restaurants in North Carolina and one in Virginia.
The restaurant chain, founded in 1937, had 35 locations before it began downsizing in 2020 following the Covid-19 pandemic.
K&W Cafeterias, a popular Southern comfort food, cafeteria-style restaurant chain for decades, closed all nine locations on December 1, 2025 and posted a message on its Facebook page, which has since been disabled. The company’s website has also been disabled.
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K&W Cafeteria was established in 1937.
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Operating up to 35 locations by 2020.
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The remaining nine restaurants will close on December 1, 2025.
The 88-year-old restaurant chain posted a farewell message on its website and posted it on the front doors of its stores.
“We are sad to announce that after proudly serving this community and many others for many years, K&W Holdings Group LLC will be closing permanently. All existing locations will close on December 1, 2025. We thank you for your support of our business over the years. K&W Holdings Management.”
Several other casual restaurant chains have filed for bankruptcy and closed locations this year. Italian restaurant chain operator Bravo Brio Restaurant LLC, the parent company of the popular upscale Italian restaurant chains Bravo Italian Kitchen and Brio Italian Grille, filed for Chapter 11 bankruptcy for the second time in five years on August 18, 2025, to restructure its business and restructure its debt.
Popular Mexican chain Abuelo’s Mexican Restaurant filed for Chapter 11 bankruptcy in September 2025, citing rising costs, labor issues and declining sales. The company had about 40 restaurants at its peak, but that was down to 16 by the time it filed for bankruptcy.
Now, the franchisee of the 84-year-old fast-casual chain Dickey’s Barbecue Pit has filed for Chapter 7 bankruptcy to close one of its California locations.
Elk Grove, Calif., franchisees Miguel Zarate Ortiz and Maria Zomeno Sevilla filed an application with the U.S. Bankruptcy Court for the Eastern District of California on Dec. 8, listing only $17,987 in assets and about $1.04 million in liabilities, the Sacramento Business Journal reported.
Most of the liabilities are debt owed to its Dallas parent company.
The Elk Grove franchisee did not state in its petition why it filed for Chapter 7 bankruptcy. The restaurant listing on Dickey’s location page shows the store is closed, and the listed phone number is unavailable.
According to Restaurant Business Journal, the Dickey’s restaurant chain closed a net 85 U.S. stores in fiscal 2024, which ended on May 31, 2024. The company closed 97 stores during the fiscal year but opened 12 more.
However, Dickey’s said in a statement in October 2025 that it opened 46 new stores between January and August 2025 and plans to open 60 new stores by the end of the year.
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However, the company did not disclose how many stores it will close in 2025.
Dickey’s was founded in 1941 and has 387 company-owned and franchised stores in the United States and several countries, according to the Dickey’s website.
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In the fiscal year ending May 31, 2024, Dickey’s opened 12 stores and closed 97 stores, resulting in a net closure of 85 stores.
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Dickey’s will open 46 new stores between January 2025 and August 2025.
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As of October 2025, Dickeys has 387 stores worldwide.
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This article was originally published by TheStreet on December 13, 2025, and first appeared in the Restaurant section. Click here to add TheStreet as your preferred source.