These 13 Restaurants Are Most Likely to Close Next Year

Additional Coverage:

These 13 Restaurants Are Most Likely To Go Bankrupt and Close in 2026 (financebuzz.com)

Dining Out on a Dime? These Restaurants Might Be Disappearing in 2026

Local eateries and national chains alike are feeling the pinch as consumers tighten their belts, making tough choices about where to spend their hard-earned dollars on a night out. After a year of consumers consistently voicing concerns about the rising cost of everything, from groceries to gas, dining out is increasingly becoming a luxury rather than a regular occurrence. This shift in spending habits is having a significant impact, and some familiar names might not make it through 2026.

Here’s a look at some restaurants most likely to face closures or bankruptcy in the coming year:

1. Long John Silver’s

Ahoy, mateys! Fast food fish has always been a bit of a culinary adventure, but it seems Americans are increasingly choosing to steer clear of Long John Silver’s.

Once boasting over 1,500 locations, the chain has seen more than 150 closures in the last three years, bringing their total count to under 500. A 2025 rebranding that added chicken to their logo in a bid for new customers signals a potential struggle to stay afloat when a brand’s core offering isn’t cutting it.

2. TGI Fridays

The casual dining spot famous for its early embrace of “Ladies’ Night” hit a major snag at the end of 2024, filing for bankruptcy due to capital structure issues. After a wave of closures, fewer than 100 TGI Fridays remain in the U.S.

While the chain is setting its sights on global expansion (aiming for 1,000 international locations!), its American footprint is shrinking dramatically. The remaining 79 U.S. restaurants are trying to entice diners with a focus on house-made sauces and hand-cut steaks.

If you’re craving those loaded potato skins, 2026 might be your last chance stateside!

3. Outback Steakhouse

This Aussie-themed steakhouse, which once had 750 locations, is also facing headwinds. In October 2025, parent company Bloomin’ Brands announced the closure of over 40 restaurants, with more having closed in 2024.

The current count is under 670. Despite a “comprehensive turnaround strategy,” many customers feel the brand is out of touch with the average American diner, making its future a bit hazy.

4. Jack in the Box

This burger chain is on a mission to survive after a failed Del Taco acquisition resulted in over $400 million in losses. Their “Jack on Track” recovery plan includes closing up to 200 locations and halting dividend payments to shareholders. Ending 2025 with $1.7 billion in debt and one of the highest debt-to-cash ratios in the industry, fans of Jack in the Box might want to get their fix soon.

5. Wendy’s

Wendy’s announced at the close of 2025 that hundreds of its locations would be shuttering in 2026. This follows 140 earlier closures aimed at boosting performance and comes amid declining U.S. sales and net income. CEO Ken Cook attributes the closures to underperforming locations, but many observers anticipate more to come as consumers eat out less due to shrinking budgets, lower quality perceptions, and higher prices.

6. Noodles & Company

The fast-casual favorite, Noodles & Company, is also facing financial difficulties with declining revenue. They plan to close between 12 and 17 locations in 2026, adding to closures from 2025.

Despite attempts to revamp the menu and raise prices, which initially led to a sales bump, overall traffic has decreased. Having been threatened with delisting from Nasdaq twice, this could be the final chapter for Noodles & Company.

7. Starbucks

Even the coffee giant Starbucks isn’t immune to economic pressures. The end of 2025 saw them announce a $1 billion restructuring plan, including hundreds of store closures, layoffs for approximately 900 non-retail employees, and a return-to-office mandate.

While there are plans for expansion in 2026, the company experienced six consecutive quarters of declining same-store sales. That expensive to-go coffee is an easy cut for budget-conscious consumers.

Spending a billion to close locations while prices continue to climb could be a bitter brew for Starbucks.

8. Denny’s

In February, Denny’s announced plans to close 70 to 90 locations in 2025, following earlier 2024 closures, and then sold itself to a private equity company – a move that hasn’t always ended well for other chains like Red Lobster. With sales at locations open at least a year down nearly 2.9% by Q3 of 2025, this diner-style chain might be saying goodbye in 2026.

9. Hardee’s

Hardee’s, the Southern fast-food staple, could be the next victim of private equity investments. ARC Burger acquired 80 Hardee’s locations in 2023, but the franchisee, owned by the same firm behind Church’s Chicken and Quiznos, is allegedly on the hook for over $6.5 million in unpaid royalties, marketing, and rent. Combined with other legal battles and declining sales, the future looks bleak for Hardee’s.

10. Boston Market

It might already be too late to grab that last rotisserie chicken. While their website might not reflect it, Boston Market is down to a mere 15 locations from a peak of over 1,200.

Owner Jay Pandya has attempted bankruptcy filings repeatedly since 2020 and was even banned from filing again for six months in 2024. With 95% of locations shuttered since 2022, lawsuits, and unpaid bills, a farewell rotisserie chicken is highly recommended if you can still find one, as the homestyle chain is unlikely to survive 2026.

11. Smokey Bones

Smokey Bones hasn’t filed for bankruptcy, but its parent company, Twin Hospitality, announced at the end of 2025 that 15 locations would close, with another 19 converting to Twin Peaks. This leaves only 26 struggling locations. Given the menu’s focus on pricier entrees like steak and brisket, which have seen significant cost increases, 2026 could mark the end of Smokey Bones.

12. On the Border

The Tex-Mex chain On the Border filed for Chapter 11 bankruptcy in 2025 after closing 40 locations deemed a financial burden. They cited familiar struggles: high lease costs, labor costs, and rising food prices. With a “severe liquidity crisis” outlined in the bankruptcy filing, fans of On the Border might want to visit one of the remaining 60 locations before they potentially disappear completely.

13. Bar Louie

The gastrobar chain Bar Louie has filed for bankruptcy twice, first in 2020 and again in 2025. Down to around 40 locations, which were lifted out of bankruptcy by Sun Holdings, their financial outlook remains grim. Recent filings indicate under $10 million in assets while owing debts potentially as high as $100 million.

The Bottom Line for Dining Out

Restaurant bankruptcies have been making headlines, but 2025 saw a dramatic surge that doesn’t bode well for dining out in 2026. Consumers are prioritizing putting food on the table and are employing every trick in the book – from shopping hacks to savvy credit card rewards – to manage soaring grocery costs. This leaves dining out as a special occasion, rather than a weekly habit.

Unfortunately, many restaurant CEOs appear to be missing this fundamental problem, believing that updated decor and new logos will miraculously save them. Spoiler alert: It won’t.