Christine Moukazis’ Post

Major Restaurant Chains That Have Closed Down Locations Across The U.S. In 2024  by Jack Kelly Forbes A mix of underperformance issues, financial pressures from inflation, strategic realignments, changing consumer trends and overall cost-cutting objectives have all contributed to the recent wave of location closures across several restaurant chains in 2024. Major chains including TGI Fridays, MOD Pizza, Outback Steakhouse and Applebee's Neighborhood Grill + Bar's cited “underperformance” as the main reason for closing certain restaurant locations. They are strategically shuttering stores that are not meeting sales and profit expectations. Other chains, like Boston Market, Red Lobster and Tijuana Flats Tex-Mex Flats, have closed locations due to severe financial troubles, unpaid bills, landlord disputes and even bankruptcy filings. Their closures are directly tied to efforts to cut costs and restructure amid money problems. Denny's specifically cited inflation-related challenges, like higher costs, as a factor forcing it to close 57 locations in 2023 and planning 10 to 20 more closures in 2024, according to a February earnings call. https://lnkd.in/ewJ9hU4H 

12 Restaurant Chains Closing Locations In 2024. A mix of underperformance issues, financial pressures from inflation, strategic realignments, changing consumer trends and overall cost-cutting objectives have all contributed to the recent wave of location closures across several restaurant chains in 2024. Restaurants simply don't have the staff to make it through normal shifts, and cutting back on open hours is truly necessary. But other times, business owners reduce hours just to cut costs, a defensive strategy that forfeits critical revenue in the process.

The restaurant business has always been tough, and chains have fared well because they stuck to a formula and executed above averagely most of the time. What's happened that has caused that formula to no longer work? Is it a drop in quality/execution? Are prices too high? Are people moving towards quick serve establishments that do one thing really well, as opposed to a place that does a bunch of things ok?? We check in with Kyle Inserra on this and other topics as we discuss Denny's decision to close 10% of their US stores. https://hubs.li/Q02YQjfQ0

I honestly think our qsr and restaurant industry in general is in trouble as costs are too high and value can't keep up. Experiential dining may not be affected like high end restaurants that offer a great celebration location or the standard value restaurants like Taco Bell will always fit a need for those looking for super affordable. But the chains that are idle and not changing the customer experience are slowing losing market share and growth capabilities to the new fresh concepts. The other part is locations. We have had a stall in retail development which has driven prices up and foot traffic down. As an example look at the retail space west of 31 on SR 32. Most of those concepts were developed and created on high density markets and not completely reliant on drive through business. As an owner of a couple of pizzeria's I can first hand tell you that the business model for regular old food is not really there any more.

The restaurant industry is currently not in an apocalyptic state despite recent challenges. Historically, the industry has experienced cycles of growth and decline, such as the wave of closures in 2017. Similar adjustments are likely occurring now after a resurgence following the pandemic from late 2021 to early 2023. Despite ongoing changes, there are positive signs like the industry approaching $1 trillion in sales for the first time and major brands securing substantial development deals. However, the landscape is evolving. City centers are slow to recover due to remote work trends, and consumer preferences are increasingly favoring limited-service formats. Additionally, demographic factors like an aging population and slower population growth are impacting restaurant traffic. As a result, the competition for market share in the restaurant industry is intensifying, requiring operators to innovate more than ever to maintain their position.

Restaurants Execute Expansion Plans with Measured Approaches To say that the restaurant industry is sending mixed signals could be the understatement of the year. The National Restaurant Association expected restaurant sales in 2024 to top $1 trillion for the first time ever. But as the year has progressed, the number of operators who anticipated sales growth in the coming months dipped to 28 percent in August from 40 percent in April amid inflation and economic uncertainty, according to the organization’s latest performance index survey. At the same time, the fortunes of the major restaurant segments are largely diverging as consumer preferences change and new technologies enhance the convenience of digital ordering and delivery. Full-service operators such as Denny’s and TGI Friday’s are closing locations, while many quick-service and fast-casual restaurants continue to pursue ambitious expansion plans, notes Jonathan Lapat, a managing principal with SRS Real Estate Partners in Boston. Raising Cane's Chicken Fingers Cane’s, for example, anticipates opening 100 restaurants in 2024 alone by year’s end, and it wants to open as many in 2025 to increase its location count to 1,000.  https://lnkd.in/drMaivby Sponsored by SRS Real Estate Partners #cre #commercialrealestate #restaurant #retail

Pollo Campero, a global quick-service restaurant chain, is building a new eatery in Huntington, replacing a shuttered Dairy Queen as part of the brand's Long Island expansion. https://lnkd.in/gK5hUC3R

Red Lobster, a popular seafood restaurant chain, is facing challenges and has announced the closure of numerous locations across the country. The company, struggling to stay afloat, revealed plans to auction off over 50 locations nationwide. TageX Brands, a restaurant liquidation company, will manage the sale of equipment from these closing locations. This marks TageX's largest restaurant equipment auction to date, although only 48 locations were specifically listed in their catalog. California will see the closure of five Red Lobster locations, while Florida will lose another five. Additionally, Colorado and Maryland will each bid farewell to four locations. TageX is selling these locations in their entirety, emphasizing that each winner of the auction will acquire the complete contents of the Red Lobster establishment they bid on. Earlier this year, reports surfaced about Red Lobster contemplating a bankruptcy filing to alleviate financial strains. According to sources familiar with the matter, discussions about potentially filing for Chapter 11 bankruptcy are ongoing. This move could help the company renegotiate leases, address long-term contracts, and manage escalating labor costs. Red Lobster appointed Jonathan Tibus as its new CEO in March. Tibus, known for his expertise in restructuring struggling restaurants, retail, and hospitality businesses, has spearheaded various successful restructuring initiatives in the past. This report includes contributions from Eric Revell of Fox News Digital.

Navigating Restaurant Expansion: Trends, Challenges & Opportunities To say that the restaurant industry is sending mixed signals could be the understatement of the year. The National Restaurant Association expected restaurant sales in 2024 to top $1 trillion for the first time ever. But as the year has progressed, the number of operators who anticipated sales growth in the coming months dipped to 28 percent in August from 40 percent in April amid inflation and economic uncertainty, according to the organization’s latest performance index survey. At the same time, the fortunes of the major restaurant segments are largely diverging as consumer preferences change and new technologies enhance the convenience of digital ordering and delivery. Full-service operators such as Denny’s and TGI Friday’s are closing locations, while many quick-service and fast-casual restaurants continue to pursue ambitious expansion plans, notes Jonathan Lapat, a managing principal with SRS Real Estate Partners in Boston. Raising Cane's Chicken Fingers Cane’s, for example, anticipates opening 100 restaurants in 2024 alone by year’s end, and it wants to open as many in 2025 to increase its location count to 1,000.  https://lnkd.in/drMaivby Sponsored by SRS Real Estate Partners #cre #commercialrealestate #restaurant #retail

Red Lobster, a popular seafood restaurant chain, is facing challenges and has announced the closure of numerous locations across the country. The company, struggling to stay afloat, revealed plans to auction off over 50 locations nationwide. TageX Brands, a restaurant liquidation company, will manage the sale of equipment from these closing locations. This marks TageX's largest restaurant equipment auction to date, although only 48 locations were specifically listed in their catalog. California will see the closure of five Red Lobster locations, while Florida will lose another five. Additionally, Colorado and Maryland will each bid farewell to four locations. TageX is selling these locations in their entirety, emphasizing that each winner of the auction will acquire the complete contents of the Red Lobster establishment they bid on. Earlier this year, reports surfaced about Red Lobster contemplating a bankruptcy filing to alleviate financial strains. According to sources familiar with the matter, discussions about potentially filing for Chapter 11 bankruptcy are ongoing. This move could help the company renegotiate leases, address long-term contracts, and manage escalating labor costs. Red Lobster appointed Jonathan Tibus as its new CEO in March. Tibus, known for his expertise in restructuring struggling restaurants, retail, and hospitality businesses, has spearheaded various successful restructuring initiatives in the past. This report includes contributions from Eric Revell of Fox News Digital.