Key Takeaways
- Multiple fast-food and fast-casual chain restaurants in the US have announced plans to downsize, focusing resources on stronger-performing stores.
- Noodles & Company, Red Robin, and Wendy’s are among the restaurants that have announced closures, with Noodles & Company closing 33 company-owned restaurants and 9 franchise restaurants in 2025.
- Wendy’s plans to close roughly 300 stores nationwide, while Red Robin may not close as many locations as initially planned due to improved performance.
- Starbucks has denied reports of extensive closures in 2026, stating that there is no plan for widespread closures.
Introduction to Restaurant Closures
Just over two weeks into the new year, multiple fast-food and fast-casual chain restaurants across the United States have announced plans to downsize, with some stating they intend to focus resources on their stronger-performing stores. This trend is not unique to one or two restaurants, but rather a broader shift in the industry. Among the restaurants that have announced closures are Noodles & Company, Red Robin, and Wendy’s. These closures are part of a larger strategy to refine their portfolios and improve financial performance.
Noodles & Company Closures
Noodles & Company, in a January 12 news release, confirmed it closed 33 company-owned restaurants and 9 franchise restaurants in 2025. In the coming year, there will likely be 30 to 35 more closures, the company said. Joe Christina, CEO and president of Noodles & Company, said the company saw sales growth of over 7% for its company-owned restaurants in the fourth quarter, and the decision to close some locations was made carefully. He added that closing some restaurants will allow the brand to strengthen itself and its finances. Christina stated, "Our fourth quarter results reinforce that when we concentrate our resources on restaurants with the strongest opportunity to perform, Noodles can drive meaningful top-line growth."
Wendy’s Closures
Wendy’s, another fast-food chain, has also announced plans to close underperforming restaurants. In November, Wendy’s Interim CEO Ken Cook told investors during a quarterly earnings call that the company planned to close a "mid single-digit percentage" of locations. At the time, Wendy’s had about 6,000 locations nationwide, meaning the closures could amount to about 240 to 360 stores. Part of the plan, Cook said, was to improve technology and equipment in some locations, transfer underperforming locations to new operators, or close the locations. When reached by email in early January, Wendy’s declined to share a complete list of closures; however, the company stated that it is working to make sure it has a "restaurant footprint that consistently delivers an exceptional experience for our customers and is profitable for our franchisees."
Red Robin Closures
Red Robin, a burger restaurant, announced in February 2025 that it planned to close about 70 underperforming locations to repay debt. However, later that year, the company stated during an earnings call that its attempts to improve performance at some locations worked so well that it didn’t need to close as many locations. When asked for an updated number of closures and a list of locations, Red Robin referred USA TODAY to the company’s second-quarter update and noted improvements. The company stated, "Building on this momentum, Red Robin delivered strong financial results in its third quarter of 2025, including beating expectations of comparable restaurant revenue, restaurant level profitability and traffic."
Starbucks Closures
Starbucks, the coffee giant, had made headlines recently for potential closures in late 2025, but the company confirmed on January 16 in a statement to USA TODAY that previous reports about the coffee company closing 400 stores were "misrepresented." According to Starbucks, the company closed 400 locations in the fall of 2025. The company stated, "As part of our normal course of business, we regularly evaluate our coffeehouses and determine how best to meet the needs of our customers, but there is no plan for extensive closures in 2026." Starbucks CEO Brian Niccol said the business was reviewing its U.S. portfolio and would close locations that aren’t able to deliver the environment and financial return the company wants to see.
Conclusion and Future Outlook
In conclusion, the fast-food and fast-casual industry is undergoing a significant shift, with multiple chains announcing plans to downsize and focus on stronger-performing stores. While some restaurants, like Noodles & Company and Wendy’s, are closing underperforming locations, others, like Red Robin, are seeing improved performance and may not need to close as many locations as initially planned. Starbucks has denied reports of extensive closures in 2026, stating that there is no plan for widespread closures. As the industry continues to evolve, it will be interesting to see how these changes impact the market and consumers. One thing is certain, however: the fast-food and fast-casual landscape is changing, and companies are adapting to stay competitive.