Some of the biggest names in casual dining filed for Chapter 11 bankruptcy protection in 2024 and closed locations.
Financial problems caused by lingering effects from the Covid-19 pandemic, higher labor and product costs driven by inflation, and consumers’ reluctance to eat at restaurants in uncertain times fueled the distress of businesses.
Tex-Mex chain Tijuana Flats in April 2024 filed for bankruptcy, closed 11 locations, sold the business, and currently operates about 100 units in Alabama, Florida, Kentucky, North Carolina, and Tennessee.
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Popular seafood chain Red Lobster filed for bankruptcy in May 2024, closed over 120 restaurants and now operates 545 locations after emerging from Chapter 11 in September 2024.
Mexican chain Rubio’s Coastal Grill on June 5, 2024, filed for Chapter 11 bankruptcy to restructure its debt and close 48 restaurants in California after a new state minimum wage law impacted its business.
Rubio’s now operates over 80 locations in Arizona, California, and Nevada.`
Popular restaurant chain TGI Friday’s Inc. filed for bankruptcy protection on Nov. 2, 2024, seeking to reorganize its business, sell certain company assets, further reduce its restaurant footprint, and reject unfavorable leases and contracts.
The dining chain in January 2025, sold 18 of its remaining restaurants and closed its other 12 remaining locations that lacked interest from potential buyers.
More closings:
- Popular retail chain to close unprofitable store locations
- Bankrupt retail chain unloads store leases, key assets
- Popular discount retailer files bankruptcy, closes all stores
Other casual chains have also filed for bankruptcy and closed locations in 2025.
South Carolina-based Sticky Fingers Restaurants LLC filed for Chapter 11 bankruptcy to reorganize its business on March 1.
The barbecue dining chain operates four Sticky Fingers Rib House locations in Greenville, North Charleston, and Summerville, S.C., and Chattanooga, Tenn. The dining company is not affiliated with the Sticky’s Finger Joint chicken fingers chain that filed for Chapter 11 bankruptcy in April 2024.
Casual dining chains close locations
Restaurant chain operator Fat Brands (FAT) has no plans to file for bankruptcy but said it would close nine of its underperforming Smokey Bones barbecue restaurants in 2025.
Denny’s Corp. (DENN) also in February revealed plans to close more of its lower-volume restaurant locations than it originally planned through the end of 2025.
The popular breakfast restaurant chain said during its fourth quarter 2024 earnings call that it planned to close 70 to 90 lower-volume restaurant locations in 2025.
McCormick & Schmick’s closing locations
And now, popular seafood and steakhouse chain McCormick & Schmick’s, which was founded in Portland, Ore., in 1979, closed its last remaining Oregon location in Tigard on March 22.
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McCormick & Schmick’s said in a statement that it closed the restaurant because the building’s lease had expired, KGW-TV reported.
“We are grateful for our dedicated employees and the support of the Tigard community over the years,” according to the statement. “While this location is closing, we are working on relocating our team members to nearby properties and look forward to welcoming our guests at Jake’s Grill, Jake’s Crawfish, and other McCormick & Schmick’s locations nationwide.”
McCormick & Schmick’s closed its original location in Portland in 2009 and its other Oregon restaurant at Portland RiverPlace in March 2024.
Houston-based restaurant operators Landry’s purchased the McCormick & Schmick’s chain in 2011 when it had over 80 locations in 26 states. The company began closing restaurants in 2017 and currently has 19 locations and one catering service in Seattle, according to its website.
Landry’s operates McCormick & Schmick’s affiliates in the Portland area, including Jake’s Grill, Jake’s Famous Crawfish, and Portland City Grill.
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