The sector has recently faced similar issues, which many have struggled to overcome.
Some factors, such as consumer spending habits, are beyond the restaurants’ control.
OUT OF THE BOX
One of the most severely affected has been Jack In The Box.
The chain has confirmed that it will close 200 locations as part of a comprehensive debt-reduction strategy.
Closures will be implemented in stages, with 80 to 120 locations expected to close by the end of 2025.
The chain is currently launching a new initiative called “JACK on Track” aimed at improving operations.
CEO Lance Tucker, who took over on March 31, stated, “Our actions today are focused on three major areas.”
“Addressing our balance sheet, closing underperforming restaurants, and returning to simplicity,” he told reporters.
To address its financial issues, the company plans to become a leaner machine than ever before.
Jack In the Box also intends to reduce spending on new company-owned restaurant development beginning in 2026.
ROTTEN APPLE
The US Sun has also reported on Applebee’s current situation and the lengths it will go to avoid bankruptcy.
The chain’s CEO has revealed plans to overhaul 30 restaurants to prevent further losses.
Applebees has already closed 150 locations.
The chain has launched its own initiative, the “Lookin’ Good” plan, which is a multi-year vision to improve every remaining Applebee’s location.
It starts with 30 of the 47 Applebee’s that Dine took over last November.
Once the 30 remodeled units are complete, they will be refranchised.
Another five will be converted into dual Applebee’s and IHOP locations.
CEO John Peyton stated, “Six of our top ten franchisees, representing 57% of the Applebee’s system, have already chosen to accelerate restaurant remodels by the end of 2025 based on the Lookin’ Good program.
“The dual brand concept is now a key component of our development strategy, and we are optimistic about its long-term potential.
“On average, we have seen these locations achieve 1.5 to 2 times the revenue compared to a single brand restaurant.”
Applebee’s has struggled in recent years, dropping from 1,578 locations in 2021 to 1,501 in 2024.
DENNY’S MAKES A DENT
Despite the numerous closures, Denny’s continues to operate.
Denny’s plans to close underperforming restaurants, and it has already closed half of them this year.
The chain intends to close 150 locations before the end of the year.
During a Wednesday earnings call, CFO Robert Verostek stated, “When restaurants have been open that long, it is natural for trade areas to shift over time.”
“Accelerating the closure of lower volume restaurants will improve franchisee cash flow and allow them to reinvest into traffic driving initiatives like our tested and proven remodel program.”
It brings the total number of Denny’s closures or planned closures to 180 since 2024.
However, Denny’s is still expanding, with the CEO predicting that 20 more locations will open this year.
The chain is also focusing on remodeling branches, which will cost an estimated $250,000 each.
Kelli Valade, CEO, continued: “This program is a catalyst for increasing same-restaurant sales, generating incremental traffic and driving profitability to our system and is a key component of achieving our long-term goal of $2.2 million AUVs for the Denny’s brand.”
OTHER CLOSURES
Unfortunately, these three are not the only major chains experiencing closures right now.
Eat This, Not That covers even more, including Subway, KFC, and Del Taco.
Subway quietly closed more than 600 locations in 2024, and it has lost approximately 7,600 stores in the last nine years.
A Subway spokesperson stated, “With nearly 37,000 locations worldwide, our focus remains on ‘Smart Growth.'”
“In the U.S., we are optimizing our footprint using a strategic, data-driven approach to ensure restaurants are in the right location, image and format and operated by the right franchisees.”
Meanwhile, KFC and Del Taco are struggling.
KFC filed for bankruptcy in 2024, and Del Taco closed all but one of its Colorado locations in March.
This accounts for a total of 18 locations.