Restaurant closures are an inevitable aspect of the restaurant business, regardless of the period or location. Furthermore, 2023 has shown to be a significant year in terms of restaurant closures. A restaurant is more likely to close its doors if it is hidden away, undiscovered, or overwhelmed by competitors. After doing a thorough investigation, we have compiled a list of permanently closed fast-food restaurants chains, as well as statistics on closed restaurant businesses.

The COVID-19 pandemic’s aftermath and rising food, labor, and other commodity expenses have led to an increasing number of restaurant closures in 2023 and recent years. Its effects, such as labor shortages and bottlenecks in the supply chain, have mainly subsided, but many people have found it difficult to recover completely, if at all. These financial strains haven’t spared even some of the most well-known and well-established restaurant businesses, such as Applebee’s and Cracker Barrel.

In 2023, several well-known name-brand businesses reduced their national presence by shutting stores, particularly those with problems before 2020.


2024 trends in fast food: More restaurant franchise closures are anticipated. While some closures result from eliminating failing sites to reallocate resources to other franchisees, other closures have been caused by loss of clientele or underlying financial issues.

A few filings and closures occurred in 2022 as a result of a decline in clients and an unfavorable operating environment brought on by inflation and other economic factors. Notwithstanding the bankruptcy proceedings, two pizza chains are still in operation: Betucci’s and Happy Joe’s. After years of hardship, several, including Hale & Hearty and Hometown Burger, eventually closed their remaining stores. Will any of these cherished chains ever again prosper? It’s conceivable if historical trends are any guide.

Restaurant chains that closed in the most locations in 2023

Understanding the situation of closed restaurant chains is crucial for businesses that rely on location-based data. Making data-driven decisions is aided by knowing which brands are suffering, whether it be franchise investment or visitor numbers at a retail location.

Subway heads the way among fast food and restaurant businesses that will close in 2023, with 26.26% of its stores closing. Over the last eight years, Subway has shuttered more locations than any other food brand in history—roughly 6,000. Although it decreased last year, the number of units in the United States is still declining. By contrast, Pizza Hut and Dunkin’ Donuts lag behind with 6.85% and 6.17% of closures, respectively.

The business had previously shuttered around 120 Burger King stores, reducing the total number in the United States to fewer than 7,000. The fast-food giant has historically closed a few hundred outlets annually, but the most recent totals are comparable to those during the epidemic. Large portions of closures in particular places have also been attributed to regional franchise owners’ financial challenges. This was the situation in March when 26 Burger King locations in Michigan abruptly closed.

Closures of Fast Food and Restaurants Chain: Analysis by Location

Fast food and restaurant closures have hit the United States hard, and focusing on the location component is critical to getting the complete picture. The US states with the highest percentage of fast food and restaurant franchises shutting in 2023 are California, Texas, and New York. The largest numbers have been recorded in these states, which has led to a notable increase in the number of fast-food companies and restaurants that have permanently closed in the US. It’s critical to comprehend the patterns and causes of these closures whether you work as a realtor, run a restaurant, or are otherwise involved in the sector.


According to research, California was the most saturated market as of August 2023, with 379 fast-food and restaurant establishments closing. Texas (310) and New York (196) were next most saturated, with 97 fast food and restaurant chains under study. Anyone hoping to flourish in the restaurant business may learn much from understanding the whereabouts and reasons behind these closures. Whether you’re building a new site or seeking to expand an existing one, business decisions might be guided by knowledge of the dangers in these specific states.

The US Cities With the Highest Rate of Fast Food and Restaurant Closures in 2023


California: Highest Restaurant and Fast-Food Closures in 2023

California distinguishes out for its startlingly high amount of fast food and restaurant brands closing in 2023 when looking at the national scene. After analyzing 97 fast food and restaurant chains, our research shows that Subway and Sweetgreen are at the top of California’s list of closed chains.

New York, Chicago, and Houston are other Highlighting Locations

When you focus on specific locations, like New York and Houston, you’ll see that these major cities have turned into battlegrounds for restaurant and fast-food franchises that plan to close by 2023. You must pay attention to these city-specific trends if you are a real estate agent, restaurant owner, or someone working in a connected industry.

As of August 2023, 61 fast food and restaurant chains had closed in New York solely out of 97 studied. Chicago (49) and Houston (53) are the next two. Understanding the particular difficulties that each city faces is essential to preventing your name from joining the long list of eateries and fast-food companies that have permanently shuttered.

Quick Summary on Restaurant and Fast-Food Chains Closing in 2023

Here is a quick summary of a few of the biggest restaurant chains in the US that have significantly reduced the number of locations that their customers can visit.


Subway: 571 units closed (2.7% drop)

Subway has shuttered hundreds of US outlets in recent years due to the excess of restaurants, antiquated operations, and décor.

Burger King: 400 locations may close

While specifics haven’t been released on where, keep an eye on Utah, Illinois, and Michigan branches, as three major state franchises have declared bankruptcy.

Krispy Kreme

They closed eight sites in 2022, and they have plans to close two more. In 2023, they closed 12 additional locations. But it has partnered with McDonald’s.

The Applebee’s

Applebee’s parent firm, Dine Brands, has revealed that 10 to 20 stores may close by the end of the year despite the restaurant chain’s positive expectations for 2023.

The Hardee’s

Summit Restaurant Holdings, a major franchise owner of Hardee’s restaurants, entered bankruptcy this spring after closing 39 locations across numerous states.

Of all the foodservice segments, the food truck category has been affected the hardest, with 22.5% of these mobile eateries shutting. Quick-service restaurants have closed the fewest—only 9.8% of them—than any other industry. Chain restaurants with less than 501 locations have closed at a rate greater than independent eateries; chains with 51 to 100 locations had the highest permanent closing rate (16.2%).
The kind of cuisine was a major factor in closure rates.

With a 7.3% closure rate, burger concepts performed the best among all cuisine categories, helped by consumers looking for comfort food they were familiar with during the crisis. With a 7.5% closure rate, Thai restaurants fared somewhat better as well, maybe demonstrating the cuisine’s mobility. With a 15.3% closure rate, French restaurants had the highest percentage of any cuisine category.


The increasing amount of business closures in 2023 is definitive evidence that the US fast food and restaurant industries are going through major changes. Many fast food and casual dining franchises experience financial challenges and pressures, leading to multiple closures and shuttering. However, none of these businesses have declared full closures, only a few sites to compensate for lost income.

Some, like The Cheesecake Factory and Chipotle, are launching new locations all year round to help you save money on less costly eating alternatives. Fast food companies and restaurants that have permanently closed their doors can be found in major cities like Houston and New York City and large states like Texas, California, and New York. LocationsCloud dataset are trusted resource for stakeholders looking for a comprehensive understanding of brand placements across sectors.