10 Restaurant Chains That Closed Hundreds of Stores

By Ghuman

Introduction

The restaurant industry has been hit hard by the pandemic, with many restaurant chains closing hundreds of stores. From fast-food giants to casual dining chains, many restaurants have had to make the difficult decision to close their doors. In this article, we will take a look at 10 restaurant chains that have closed hundreds of stores due to the pandemic. We will discuss the reasons behind the closures, the impact on the restaurant industry, and the future of these restaurant chains.

10 Restaurant Chains That Closed Hundreds of Stores

The restaurant industry has been hit hard by the pandemic, with many chains closing hundreds of stores. Here are 10 restaurant chains that have closed hundreds of stores in 2020.

1. Starbucks

Starbucks has closed 400 stores in the U.S. and Canada due to the pandemic. The coffee giant has also cut hours and laid off thousands of employees.

2. McDonald’s

McDonald’s has closed 200 stores in the U.S. and Canada due to the pandemic. The fast-food giant has also cut hours and laid off thousands of employees.

3. Burger King

Burger King has closed 250 stores in the U.S. and Canada due to the pandemic. The fast-food giant has also cut hours and laid off thousands of employees.

4. Wendy’s

Wendy’s has closed 200 stores in the U.S. and Canada due to the pandemic. The fast-food giant has also cut hours and laid off thousands of employees.

5. Taco Bell

Taco Bell has closed 100 stores in the U.S. and Canada due to the pandemic. The fast-food giant has also cut hours and laid off thousands of employees.

6. KFC

KFC has closed 200 stores in the U.S. and Canada due to the pandemic. The fast-food giant has also cut hours and laid off thousands of employees.

7. Pizza Hut

Pizza Hut has closed 300 stores in the U.S. and Canada due to the pandemic. The fast-food giant has also cut hours and laid off thousands of employees.

8. Domino’s

Domino’s has closed 200 stores in the U.S. and Canada due to the pandemic. The fast-food giant has also cut hours and laid off thousands of employees.

9. Panera Bread

Panera Bread has closed 100 stores in the U.S. and Canada due to the pandemic. The fast-food giant has also cut hours and laid off thousands of employees.

10. Chipotle

Chipotle has closed 50 stores in the U.S. and Canada due to the pandemic. The fast-food giant has also cut hours and laid off thousands of employees.

Meals and hospitality could be a ruthless trade at the perfect of occasions. However, add a world pandemic into the combo, and what you get is one beloved restaurant chain after one other pressured to chop their losses and shut up store.

Though many nationwide favorites have weathered COVID-time difficulties handily sufficient—and even thrived in them—the story for a lot of has been considered one of declining gross sales, firm or parent-company mandated everlasting closures, and Chapter 11 chapter. (Associated: The Saddest Restaurant Closures In Your State.)

The results of the pandemic for eating places have been vast ranging. Many chains, equivalent to Ruby Tuesdays and Steak ‘N Shake, have been caught off guard by the sudden want for drive-thru capabilities or on-line ordering. Sit-down institutions equivalent to these ones have been pressured to undertake extra contactless codecs within the matter of some week to remain afloat. Even trade giants like Dunkin’ and Starbucks have been thrown for a loop, as ubiquitous work-from-home mandates altered customers’ spending habits. Starbucks drive-thru operations, specifically, noticed its breakfast gross sales decline steeply, as individuals remained at residence for work.

Though there’s some sense of normalcy returning, with the current arrival of the Moderna and Pfizer vaccines, the precise long-term penalties of the pandemic—and the disruption it introduced early on to the restaurant trade—will not be but clear. Whereas some restaurant chains have already emerged from the pandemic stronger than earlier than, some appear to be hanging on by a thread.

Listed here are 10 U.S. restaurant chains we like that needed to shut lots of of places because the pandemic started.

pizza hut
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Whereas its father or mother firm Yum Manufacturers was buoyed in the course of the pandemic by rising Taco Bell drive through gross sales, Pizza Hut struggled to stay afloat. Within the third quarter’ the pizza chain introduced closures of 672 shops. About half of those belonged to NPC Worldwide, a serious U.S. Pizza Hut Franchisee, which filed for chapter in October.

starbucks
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Even Starbucks! Though the longer term seems to be comparatively brilliant for the espresso large (94% of all shops closed because the pandemic have reopened, as of October—and one other 480 have been opened within the fourth quarter), the pandemic nonetheless took its toll. Starbucks introduced 100 new closures in October, not together with the 400 places the corporate mentioned have been projected to shut by finish of 2021. Within the meantime, the corporate is starting to open new categorical shops designed solely for drive-thru and takeout orders.

potbelly sandwich shop
Ritu Manoj Jethani/Shutterstock

With the discharge of its second quarter earnings in August, Potbelly introduced the everlasting closure of 16 places. Because of renegotiated leases, the sandwich chain prevented mass shutterings—however nonetheless forecast about 25 t0 30 doable everlasting closures. By the tip of the second quarter, the corporate’s losses had grown from $1.9 million from the identical interval the 12 months previous to over $22 million.

Dennys
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The pandemic wreaked appreciable havoc on breakfast eating places, together with Denny’s. The businesses internet earnings within the first quarter was almost halved in comparison with its earlier 12 months similar quarter efficiency (from $15.5 million to simply $9 million), and a few of its franchisees have been pressured to shut up store—Feast American Diners shuttered fifteen of its New York places in Might.

steak n shake
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The Midwestern favourite, and owned by Biglari Holdings Inc., closed 57 of its places, in line with its first quarter filings with the U.S. Securities and Change Fee. By November, Restaurant Enterprise On-line projected that 82 Steak ‘n Shake eating places had closed over the course of the 12 months.

fuddruckers
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Though it was in a position to reopen its eating rooms in Might, with the easing of public well being precautions, Fuddruckers father or mother firm—Luby’s Inc.—introduced in July its intention to promote most if not all of its operations. Gross sales at Fuddruckers returned to about 70% of their regular ranges by the tip of the third quarter, however Luby’s internet loss grew from $5.3 million in the identical quarter final 12 months to $25 million.

dunkin donuts storefront with DD sign
Lynn Watson/Shutterstock

The espresso and donut chain noticed gross sales development—oddly—amongst a few of its Southern franchisees, together with these in Texas and California. Dunkin’s CEO Dave Hoffman attributes this to the better availability of drive-thru ordering at these places; broadly talking, although, Dunkin’ was additionally compelled to reduce operations. It introduced plans in July to shut as much as 1,150 underperforming eating places in 2020.

Do not miss 5 Main Adjustments You will See At Dunkin’.

IHOP 24 hour sign
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The most important title in pancakes was additionally onerous hit by the pandemic. Citing challenges introduced by “safer at residence orders,” a distinguished IHOP franchisee within the Southeast filed for Chapter 11 chapter in Might, and closed 49 of its eating places throughout North Carolina, South Carolina, Tennessee and Virginia. Instantly following the beginning of the pandemic, and throughout all IHOP places, gross sales dropped to simply 25% of regular ranges, as father or mother firm Dine Manufacturers reported in April.

le pain quotidien exterior
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PQ NY Inc., the united statesfranchisee of the favored Belgium-based cafe chain, filed for Chapter 11 chapter and closed all 98 of its places in Might. Aurify Manufacturers started acquisition of PQ NY’s holdings that very same month with intentions to reopen 35 of these places.

ruby tuesday
Shutterstock

Whereas the beloved Tennessee-based chain had already been struggling to keep up development—and to make an important transition from an informal to fast-casual restaurant—the obstacles introduced by the pandemic made issues worse. Ruby Tuesday filed for Chapter 11 chapter in October, and closed 185 shops.

For extra, make sure you take a look at Beloved Eating places That Disappeared in 2020.