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By Suzanne Blake
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Several restaurant chains have announced upcoming closures throughout the month of March, and fast-food giants Wendy’s, Pizza Hut and Papa Johns are all set to be impacted.
Why It Matters
The upcoming closures reflect continued financial strain felt across some in the food‑service industry as inflation, labor costs and shifting consumer behavior weigh on profitability.
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Many of the shutdowns this spring will target what companies are calling underperforming and older locations that no longer fit updated business models.
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What To Know
The full list of national chains set to shutter locations down during March include:
- Wendy’s
- Papa Johns
- Pizza Hut
Wendy’s is in the middle of one of the largest retrenchments in its history, planning to close roughly 300 to 358 U.S. restaurants in the first half of 2026, according to company earnings calls and media reports.
Many of those closures are occurring in March as leases expire and locations are evaluated under the company’s “Project Fresh” strategy, which prioritizes newer, drive‑thru‑focused designs.
Pizza Hut is also eliminating hundreds of traditional sit‑down locations nationwide. Parent company Yum! Brands has said about 250 U.S. Pizza Hut restaurants will close during the first half of 2026, with March marking a key window in the transition away from large dine‑in “red roof” restaurants toward smaller delivery and carry‑out units.
Papa Johns has also announced closures tied to underperforming franchise locations. The pizza chain plans to shut around 200 restaurants during 2026, with additional closures extending into 2027.
While the company has not released a full list of March‑specific locations, executives confirmed that closures would accelerate this year as part of a broader restructuring effort.
March has become a common shutdown month because it often coincides with lease expirations, post‑holiday financial reviews and first‑quarter restructuring plans. Rising food prices and labor costs continue to pressure margins, while consumer spending remains cautious as households cut back on discretionary dining.
“Two things can be true at the same time. The economy is slowing and demand has weakened in certain segments, but many restaurant companies also expanded rapidly during the pandemic and are now pulling back,” Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek.
According to recent federal data, food‑away‑from‑home prices rose about 4 percent over the past year, while labor and operating costs for restaurants have climbed roughly 35 percent over five years, forcing many chains to reevaluate their footprints.
“I expect further consolidation in the fast-food industry as margin compression continues. The fastest way for companies to protect margins is to cut costs, often starting with headcount,” Thompson said.
What People Are Saying
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “In recent months, we've seen fast food chains like Wendy's and Papa John's scale back locations, and while this is incredibly unfortunate for the employees working at those stores, the move is unsurprising. As inflationary pressures continue to weigh on many Americans, customers have increasingly opted to eat at home to save money instead of dining out.”
Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: “Moving forward, we will likely see more brands consolidating under larger umbrellas to create economies of scale. That may help control costs somewhat for consumers, but when competition shrinks, prices also tend to stay higher for longer.”
What Happens Next
As restaurant chains face continued disruptions regarding food inflation and consumer behavior, staffing issues could push them to be even more likely to shutter locations.
“Further complicating some locations were reductions in staff, which while cost-saving can lead to slower service and bad word-of-mouth among remaining customers. It's the perfect storm of factors for some retailers to shutter locations,” Beene said.
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