TGI Friday’s Falls From Grace After Four Decades
TGI Friday’s filed for Chapter 11 bankruptcy in November 2024, affecting its 39 company-owned locations. The casual dining chain has reduced its footprint from 270 restaurants to just 163 locations, dramatically shrinking its once-mighty presence. After years of struggling with sales growth and multiple closures, this iconic brand that defined the bar-and-grill segment has become a shadow of its former self.
The bankruptcy filing ended a difficult period marked by years of declining sales and the company’s recent loss of control over most assets after failing to file required documents to bondholders on time. What makes this story particularly tragic is how a brand that once symbolized the weekend spirit has lost its way in a rapidly changing dining landscape.
Red Lobster’s Endless Shrimp Disaster
Red Lobster filed for bankruptcy protection in May 2024, citing “a difficult macroeconomic environment, a bloated and underperforming restaurant footprint, failed or ill-advised strategic initiatives, and increased competition”. The Ultimate Endless Shrimp promotion alone resulted in an $11 million loss. The seafood giant that generations of Americans grew up with has become the poster child for corporate mismanagement.
Customer visits declined by an alarming 30% since 2019, and even as restaurants attempted to recover between 2021 and 2023, sales only increased 25%. The chain closed more than 100 locations and has been sold to Fortress Investment Group, with new CEO Damola Adamolekun calling the Endless Shrimp deal “the final nail in the coffin”.
Hooters Closes Dozens of Locations Nationwide
In 2025, Hooters, On the Border, and Bar Louie have all filed for bankruptcy, with all three citing a volatile economic environment as a key reason. Hooters confirmed the closure of more than 30 company-owned outlets across the United States, calling it a “difficult decision” as part of bankruptcy restructuring. The wing chain that once epitomized a certain type of American dining experience is rapidly disappearing from the landscape.
Accounting for the closures, Hooters has about 300 global locations – a nearly 12% decline since 2018, while rivals like Twin Peaks and Dave & Busters have all grown since then. The parent company HOA Restaurant Group filed for Chapter 11 bankruptcy protection in March, reporting $376 million in debts and planning to sell its 151 corporate-owned outlets to franchisees.
Boston Market’s Spectacular Collapse
A list of open Boston Market restaurants provided to Restaurant Business includes just 27 locations, and several employees confirmed the number, though owner disputes the count claiming there are “more than double”. Boston Market began 2023 with 300 locations but had only 27 left by March 2024, experiencing legal and financial troubles with many closures due to landlord evictions for unpaid bills and state officials mandating shutdowns over unpaid sales taxes.
Closures come either because landlords are evicting Boston Market over unpaid bills, or because state officials are shutting down restaurants over unpaid sales taxes, with one former employee stating “restaurants are closing every day”. The rotisserie chicken chain that once dominated mall food courts has essentially vanished from American dining.
Subway’s Dramatic Decline From Peak to Trough
Subway concluded 2024 with 19,502 domestic units, the brand’s lowest level in nearly 20 years, after peaking at more than 27,000 stores in 2015 with decreases starting in 2016. The chain lost over 600 stores in 2024 alone, bringing the total net loss to 7,600 stores in just nine years, with 631 stores closing in 2024.
The decline isn’t new – 2023 had 443 stores closed, 2022 showed 571 stores closed, and 2021 had a whopping 1,043 closings, with the company remaining tight-lipped about closings. Many closures left employees unexpectedly unemployed with no warnings, particularly in Oregon where 23 locations closed suddenly.
Denny’s America’s Diner Loses Its Appetite
Denny’s announced plans to close 150 of its approximately 1,400 U.S. restaurants in October, with fifty locations set to shut down by the end of 2024 and the rest closing in 2025. The diner chain now plans to shut between 70 and 90 restaurants in 2025, according to chief financial officer Robert Verostek. The brand that promised to be “America’s Diner” is steadily abandoning American communities.
Denny’s reported its fifth straight quarter of year-over-year declines in same-store sales, citing that restaurant inflation is outpacing grocery price inflation, making it harder for customers to justify eating out. The chain ended 2024 with 1,334 U.S. restaurants and assessed 265 of its worst-performing restaurants for potential closure.
BurgerFi’s Premium Burger Dream Crumbles
BurgerFi, parent company of Anthony’s Coal Fired Pizza, filed for Chapter 11 bankruptcy in September 2024, with inconsistent leadership leading to a decline in food quality and service and eventually declining sales. CEO Carl Bachmann shuttered 14 underperforming BurgerFi sites in 2023 and around a couple dozen more while filing for Chapter 11 bankruptcy, reporting a 13% decrease in same-store sales and 6% drop in revenue.
BurgerFi said in a regulatory filing in mid-August that there was “substantial doubt” about the company’s ability to operate. The gourmet burger concept that once seemed poised to challenge fast-food giants has crumbled under financial pressure and operational challenges.
Rubio’s Coastal Grill Closes After California Wage Hikes
TREW Capital Management bought the debt of Rubio’s Coastal Grill, with the fast-casual Mexican chain closing 48 restaurants in California in June, just months after California started requiring chains to pay $20 per hour. Rubio’s Coastal Grill, known for its fish tacos, has seen a dramatic decline from over 200 locations to just 86 locations in California, Arizona, and Nevada by 2024.
The company filed for its second bankruptcy since 2020, highlighting ongoing financial struggles, with several factors including the rising cost of doing business, especially in California. The chain that helped popularize fish tacos in America couldn’t survive the perfect storm of rising costs and changing economics.
Buca di Beppo’s Family-Style Farewell
Buca di Beppo declared bankruptcy on August 5, with the Italian American chain keeping 44 of its locations open while it restructures and planning to open another restaurant too. The chain is restructuring after closing several restaurants and dealing with staffing issues. The restaurant known for its over-the-top Italian-American atmosphere and family-style portions has struggled to maintain relevance in today’s dining market.
The brand that once filled dining rooms with large parties celebrating special occasions has found itself unable to adapt to shifting dining habits. In 2024, prominent brands such as Red Lobster, TGI Fridays, and Buca di Beppo filed for Chapter 11 bankruptcy, citing rising operational costs and changing consumer behaviors.
