In 2024, the restaurant industry faced significant challenges, leading many chains to close underperforming locations to enhance profitability. Consumers, burdened by inflation, reduced dining out and prioritized value, resulting in declining restaurant visits and increased bankruptcies; 26 companies filed for Chapter 11, nearly triple the 2020 rate. Chains like Wendy’s, Applebee’s, Denny’s, TGI Fridays, and Red Lobster announced numerous closures, focusing on less profitable outlets. Dine Brands, owner of Applebee’s and IHOP, has consistently closed more locations than opened since 2016. The landscape reflects a shift toward fast-casual options and enduring struggles for traditional casual-dining establishments.
