The casual restaurant sector has faced mixed results over the last year and a half, with the top dining chains like Texas Roadhouse and Olive Garden having remarkable success.
On the other end of the spectrum, several once-popular restaurant chains have been struggling, closing locations and sometimes filing for bankruptcy.
Olive Garden was America’s most popular restaurant chain, based on system-wide sales, from 2018 until 2024, when Texas Roadhouse knocked it off its perch.
Texas Roadhouse sales rose 14.7% in 2024 to $5.5 billion, while Olive Garden sales increased by 0.8% to $5.2 billion, according to research firm Technomic.
Top restaurant sales in 2024:
- Texas Roadhouse, 14.7% increase to $5.5 billion.
- Olive Garden, 0.8% increase to $5.2 billion.
Economic issues, such as rising labor and food costs driven by inflation, rent increases, and a pullback in consumer discretionary spending, have resulted in financial distress for some dining chains.
And others with more severe problems have filed for bankruptcy protection.
Related: 63-year-old retail chain winds down in Chapter 11 bankruptcy
Dining chains that have filed for bankruptcy protection this year include On the Border Mexican Grill & Cantina in February 2025, Bertucci’s Italian restaurant in April 2025, and Bravo Italian Kitchen and Brio Italian Grille parent company Bravo Brio Restaurants LLC in August 2025.
Restaurant chains that filed for bankruptcy in 2025
- On the Border Mexican Grill & Cantina, February 2025.
- Bertucci’s, April 2025.
- Bravo Brio Restaurants LLC, August 2025.
Restaurant companies occasionally discover that lease rates in certain locations no longer make economic sense and will shut down units where their rent is too high.
The 55-year-old dining chain will close one of its oldest restaurant locations after a huge rent increase.
Image source: Shutterstock
Rutabegorz dining chain closes location with exorbitant rent
55-year-old Orange County, Calif., restaurant chain Rutabegorz has revealed that it will close its Tustin, Calif., location after the close of business on Oct. 30.
The restaurant chain’s Tustin location will close after 47 years of operation, as owner Paul Berkman asserts that the dining establishment’s new landlord has proposed doubling the restaurant’s $6,000 rent, the Orange County Business Journal reported.
Restaurant doesn’t own Tustin location
Berkman said that the Old Town Tustin location is the only one of his restaurant locations where he doesn’t own the building.
Rutabegorz also has locations in Fullerton and Orange, Calif.
Restaurant landlord selling property for $3.7 million
The restaurant building’s ownership changed recently, with the new owners seeking to sell the property for $3.7 million, according to CoStar, the Business Journal reported.
Rutabegorz opened in 1970 in Fullerton, Calif., in 1970 as a small “hippie joint” serving only coffee and desserts in the beginning, according to the restaurant’s website.
More closings:
- Major furniture manufacturer closes down, no bankruptcy
- Iconic pizza chain’s franchisees close multiple restaurants
- Iconic retail chain closing over 100 stores in bankruptcy
The restaurant chain evolved into health food restaurants and currently serves vegetarian dishes, white breast of chicken, turkey, albacore tuna, and assorted lean deli meats.
“Our mission has always been to provide our communities with a healthy alternative to traditional restaurant offerings without sacrificing taste,” Rutabegorz’s website says.
Rutabegorz offers ‘old school’ vegetarian menu items
“We provide ‘old school’ vegetarian values — lots of fresh and natural foods. We strive to make your experience here positive, and hope you’ll enjoy our unique food, casual atmosphere and friendly servers,” the website said.
The restaurant chain’s Tustin location opened in 1978 and its Orange, Calif., location opened in 2001 with the same dining philosophy.
The Tustin restaurant will operate under normal business hours until it shuts down, but it will no longer be open on Sundays.
The Fullerton and Orange locations will remain open as usual. Berkman, who is 77 years old, said he will sell the chain’s remaining locations when he retires.
Related: 50-year-old furniture manufacturer closed down, no bankruptcy