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By Amanda Greenwood
Associate News Editor
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A number of restaurants across the U.S., including some from the biggest chains, have closed, or are planning to close, in 2025.
This is despite that fact that the U.S. fast-casual restaurant market is projected to grow significantly and add add about $84.5 billion in revenue between 2025 and 2029, according to OysterLink, a job platform for the restaurant and hospitality industry. In January 2025, restaurant sales revenue reached $98.6 billion, a 5.4 percent year-on-year increase, still according to OysterLink, which notes a portion of this increase was attributed to inflation.
Why It Matters
The closure of some of the most popular restaurants and chains across the U.S. is not only affecting diners, but it’s also affecting the livelihoods of thousands of hospitality workers and weakening the communities that rely on these establishments for jobs, social connections, and economic stability.
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Key Restaurants That Have Made or Will Make Closures in 2025 Include:
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Hooters
The popular sports bar, Hooters, has filed for bankruptcy in March, selling off at least 100 locations to a franchise group. In June, it closed at least 30 locations.
On The Border Mexican Grill
On The Border Mexican Grill, a Mexican food outlet, has filed for Chapter 11 bankruptcy and shuttered 77 locations across 24 states. In May it was purchased by Pappas Restaurants in an auction.
Abuelo’s
Abuelo’s, another popular Mexican restaurant, closed 24 out of roughly 40 locations after filing for Chapter 11 bankruptcy due to financial difficulties and underperformance.
Bar Louie
Gastrobar, Bar Louie entered Chapter 11 bankruptcy for the second time, closing multiple locations across nine states. At least 13 locations were closed. It currently lists 40 locations on its website.
Quesadilla Gorilla
Quesadilla Gorilla, a Mexican fast-casual chain, is closing two California locations (Tulare and Hanford) in late 2025.
Wendy’s
Fast-food favorite Wendy’s plans to shutter restaurants starting in the fourth quarter of 2025, according to The Associated Press. The company said a “mid-single-digit percentage” of its U.S. stores would likely be affected, which could amount to about 300 locations, still according to AP. In 2024, at least 240 Wendy's locations closed.
Jack in the Box
Fast-food chain, Jack in the Box, is projecting between 150 and 200 closures (which is around 10 percent of its restaurants), with about 80 to 120 set to close by the end of 2025, the company said in April.
Red Robin
Gourmet burger chain, Red Robin, plans to shut 10 to 15 restaurants in 2025. Early in the year, the company had said it would close 70 restaurants over the next five years, but a spokesperson recently told MassLive that it was now down to 50 due to "improved performance and profitability."
Outback Steakhouse
This steakhouse closed 21 restaurants in October 2025, stating it was part of a longer-term operational turnaround to rebrand.
What People Are Saying
In court records obtained by USA Today, On The Border Holdings' chief restructuring officer, Jonathan Tibus, said: "On The Border has been weighed down in recent years by macroeconomic factors that have negatively impacted the Company. Casual dining restaurants are acutely impacted by consumer sensitivities to eating out versus staying in."
As reported by CNN Business, the CEO of Hooters, Neil Kiefer, stated: "For many years now, the Hooters brand has been owned by private equity firms and other groups with no history or experience with the Hooters brand."
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