- Multiple fast-food and casual dining chains are planning closures or major downsizing in 2026 as inflation and labor costs continue to bite.
- Brands like Wendy’s, Starbucks, and legacy sit-down chains are reevaluating underperforming locations rather than expanding.
- Experts say these closures reflect a larger reset in the restaurant industry.
We’re not even through January, and the restaurant industry is already showing signs of slowing down. According to FinanceBuzz and other industry researchers, several chains are expected to downsize or even shut down this year, marking a tough era for casual dining and fast food.
Rising costs, shifts in consumer behavior, and ongoing economic pressure are forcing even familiar dining brands to rethink their footprints. Here are some of the chains at risk this year.
Wendy’s
One of the most notable examples of scaling down in the fast-food world is Wendy’s, which has already announced plans to close hundreds of U.S. locations this year. The brand’s strategy is aimed at optimizing profitability and modernizing, but for customers, it could mean familiar drive-thrus disappearing from their neighborhoods.
Starbucks
Even giants aren’t immune. Starbucks is undergoing a significant restructuring that includes closing roughly 400 North American locations over the next year. While the chain isn’t going away, this marks a rare retreat from its historically rapid expansion and reflects changing consumer habits and competition in the coffee space.
Denny’s
Casual dining chains like Denny’s have also faced closures, with roughly 150 underperforming locations slated to close at the end of last year. Industry experts predict that this trend will continue into early 2026 as restructuring wraps up.
Noodles & Company
Comfort food and pasta chain Noodles & Company is another brand reducing its footprint due to declining traffic and profitability issues. After shuttering a number of underperforming stores in 2025, additional closures are planned this year as part of broader efforts to stabilize the business.
Hooters
Casual dining and wings chain Hooters entered Chapter 11 bankruptcy protection while planning to sell its company-owned restaurants to franchise groups, a move that often coincides with closures and reorganization. Though some locations will remain open, the restructuring underscores the brand’s ongoing struggles.
Boston Market
Once a growth story, Boston Market is now the most precarious brand on this list. The rotisserie chain contracted from hundreds of restaurants to just a couple dozen, amid unpaid bills, lawsuits, and intense financial strain. Its shaky situation suggests further closures are likely in 2026.
Outback Steakhouse
Traditional sit-down favorite Outback Steakhouse is scaling back as leases expire and older locations shutter. This is particularly upsetting for me…Blooming Onion Forever.
What This Means For Diners
Restaurant closures don’t necessarily mean these chains are going away entirely; for most, it’s about consolidation, cost control, and adapting to changing customer habits. But for fans of certain local spots, 2026 could bring more “last meals” than new openings. Keep an eye on your favorite drive-thru and dining room this year—if history is any indication, 2026 will be a year of both endings and reinvention in the restaurant world.
Originally published at Delish
