Consumers are always disappointed when they discover one of their favorite restaurants has closed abruptly, with a note on the establishment’s front door.
This practice has occurred more lately as the casual restaurant sector has faced economic challenges and financial distress, leading to closures of locations of many chains.
Common reasons for shutting down locations have included fierce competition among restaurant chains, rising labor and food costs, and high lease rates that have forced several companies to launch out-of-court restructurings, close locations, and, in some cases, file for bankruptcy.
Every casual dining chain must contend with the nation’s leading restaurant chain, Texas Roadhouse, which in 2024 unseated Olive Garden as the top dining chain.
Texas Roadhouse’s sales increased by 14.7% in 2024 to $5.5 billion, while Olive Garden’s sales rose by 0.8% to $5.2 billion, research firm Techtronic reported, according to Restaurant Business Magazine.
Top casual restaurant sales in 2024:
- Texas Roadhouse, $5.5 billion, 14.7% increase
- Olive Garden, $5.2 billion, 0.8% increase
Among the popular restaurant chains closing a large number of locations have been Joe’s Crab Shack, which is owned by Landry’s Restaurant Group. The chain peaked at about 150 locations before shrinking over the years by about 90% to 15 locations, its website said on Oct. 29, after closing three locations in Corpus Christi, Texas; Fort Myers, Fla., and San Diego this year.
Popular Tex-Mex casual dining chain On The Border Mexican Grill & Cantina had about 120 locations when it closed about one-third of its restaurants in February 2025 and filed for Chapter 11 bankruptcy on March 4, 2025, with plans to sell its assets to its prepetition bridge loan lender, which is an affiliate of Pappas Restaurants.
The debtor closed or vacated 40 non-performing stores on Feb. 24 because of problems with rent and/or financial performance. The company began withholding vendor and rent payments, which led to vendors cutting services and withholding goods, and landlords repossessing leased premises or exercising set-off rights.
Bravo Brio Restaurants closed locations, filed bankruptcy
Olive Garden competitor Bravo Italian Kitchen and Brio Italian Grille parent company Bravo Brio Restaurants LLC filed for Chapter 11 protection for the second time in August 2025, after closing seven locations earlier in the year.
The restaurant chain operates 25 Brio Italian Grille and 23 Bravo Italian Kitchen locations, according to its website.
More closings:
- Major trucking company closes Home Depot distribution facility
- 63-year-old bankrupt retail chain closes all stores permanently
- Discount retail chain closes half its store locations
The chain’s former owner, Food First Global Restaurants, filed for Chapter 11 bankruptcy protection for the first time in April 2020, suffering from the effects of the Covid-19 pandemic.
And now, one of Texas Roadhouse’s top competitors is closing down several locations as part of a corporate turnaround plan.
Outback Steakhouse’s owner Bloomin’ Brands is closing locations around the country.
Outback Steakhouse closes restaurants
Bloomin’ Brands, which owns, operates, and franchises dining chains Outback Steakhouse, Bonefish Grill, Carrabba’s Italian Grill, and Fleming’s Prime Steakhouse & Wine Bar, closed at least a dozen of its restaurants in several states as of Oct. 26, in many cases closing locations with a note on the door announcing the closure and removing signage.
The restaurant owner and operator closed nine Outback Steakhouses with two located in Birmingham, Ala., and one each in Jacksonville Beach, Fla., Naples, Fla., Baton Rouge, La., Silver Spring, Md., Merrick, N.Y., Madison, Wis., and Waco, Texas, according to various local news accounts, KGW8-TV in Portland, Ore., reported.
The Silver Spring location closed Oct. 26 with a note on the door, and signage has already been removed, Bethesda Today reported.
Where Outback Steakhouse closed restaurants:
- Birmingham, Ala, 20th Street North at 20 Midtown
- Birmingham, Ala., Inverness location on US-280
- Jacksonville Beach, Fla., 3760 South 3rd Street
- Naples, Fla., 4910 US-41 North
- Baton Rouge, La., Jones Creek Blvd.
- Silver Spring, Md., 8661 Colesville Road
- Merrick, N.Y., 2124 Merrick Mall
- Madison, Wis., 4520 E. Towne Blvd.
- Waco, Texas, 4500 Franklin Ave.
Bloomin,’ which operates over 1,450 locations across all four concepts, also closed a Bonefish Grill in Madison, Wis., according to the Wisconsin State Journal. It closed another Bonefish Grill in Gainesville, Va., on Oct. 26, and a Carrabba’s in North Palm Beach, Fla., earlier in October, Nation’s Restaurant News reported.
The restaurant closings were a part of Bloomin’s ongoing turnaround plan, a spokesperson said. The company revealed in February 2024 that it would close 41 underperforming locations across its restaurant brands last year.
Outback closures are part of a turnaround plan
“After a periodic review, we decided to close some locations,” a spokesperson told Nation’s Restaurant News in an email. “These are business decisions that are part of our ongoing turnaround plan.
“We considered a variety of factors, including sales and traffic, trade areas, and potential investments to improve performance. We are working to relocate as many of our team members as possible to nearby restaurants,” according to the spokesperson.
Bloomin’ Brands’ same-store sales declined across its four brands by 0.1% in the second quarter ending June 30, 2025. Outback sales decreased by 0.6%, while Bonefish’s sales sank by 5.8%. Carrabba’s sales increased by 3.9%, while Fleming’s rose by 3.8%.
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