1. Ruby Tuesday
Struggling with declining sales and outdated menus, Ruby Tuesday has been scaling back its operations for years. Analysts predict 2025 could be the year the chain shutters its remaining locations. Despite efforts to modernize, competition from fast-casual dining has proven too tough to overcome.
2. TGI Fridays
TGI Fridays, once a cornerstone of casual dining, is facing difficulties staying relevant in today’s dining landscape. Rising labor costs and dwindling customer traffic have taken a toll on profitability. The chain’s reliance on dated menu options has further hindered its ability to attract younger diners.
3. Sbarro
Known for its mall food court presence, Sbarro has struggled to adapt to the decline of brick-and-mortar retail. With fewer malls thriving and a lack of innovative menu updates, the chain’s footprint continues to shrink. 2025 could see more closures as foot traffic dwindles.
4. Boston Market
Despite its once-popular rotisserie chicken, Boston Market has struggled to maintain a foothold in the crowded fast-casual dining sector. Rising costs and changing consumer preferences have eroded its appeal. Experts predict that the chain may not survive another year of financial difficulties.
5. Golden Corral
Buffets like Golden Corral have been on the decline, with the pandemic accelerating the trend. The chain has faced challenges regaining customer confidence and adapting its model. Many locations have already closed, and more are expected to follow in 2025.
6. Steak ‘n Shake
Steak ‘n Shake has been plagued by franchise disputes, declining sales, and service complaints. Attempts to transition to a self-service model have been met with mixed results. Industry insiders suggest the chain may close additional locations in the coming year.
7. Applebee’s
Applebee’s has long been synonymous with affordable, casual dining, but changing consumer habits are catching up with the chain. Despite various marketing pushes, the brand struggles to attract younger customers. Ongoing financial pressures may lead to widespread closures in 2025.
8. Friendly’s
Friendly’s has been in decline for over a decade, with shrinking locations and mounting debts. Its focus on ice cream and diner-style meals has failed to resonate with today’s health-conscious diners. Many experts expect the chain to face further cutbacks in 2025.
9. Joe’s Crab Shack
Joe’s Crab Shack has struggled with shifting seafood prices and operational inefficiencies. The chain’s coastal theme has failed to draw enough traffic in non-coastal areas. Closures are likely to accelerate as financial challenges mount.
10. Red Robin
Red Robin has been grappling with increased competition in the burger market and high operational costs. The chain’s attempts to modernize have had limited success, leaving many locations underperforming. Analysts believe 2025 could bring significant downsizing.
11. Fuddruckers
Fuddruckers, known for its customizable burgers, has been slowly disappearing from the dining landscape. The brand’s reliance on a dine-in experience hasn’t fared well in an era of delivery and takeout. More closures seem inevitable as the chain fights to stay afloat.
12. The Cheesecake Factory
Even The Cheesecake Factory, a staple of upscale casual dining, is feeling the pinch of rising costs and evolving consumer preferences. The chain has faced challenges balancing its expansive menu with profitability. While closures may not be widespread, struggling locations are expected to shut their doors in 2025.
