This year seemed to be defined by “under-performing” units closing by the hundreds across the restaurant industry.
Not only was the entire industry hit by COVID-related indoor-dining closures, but the decrease in ordering food – in spite of the success of The Great American Takeout and Paycheck Protection Program loans – caused many restaurant groups to face large financial strains.
Starbucks, one of the top 10 restaurant chains on NRN’s Top 200, suffered because of a workforce that went largely remote and abandoned the breakfast daypart. Dunkin’ also faced the same issues.
Between the two quick-service giants, over 1,600 domestic units were permanently closed.
Other brands, such as Ruby Tuesday, Sizzler, Luby’s, Le Pain Quotidien and Thompson Hospitality declared bankruptcy, resulting in the closure of all units.
Family dining saw large financial downturns during the pandemic as well.
IHOP franchisee CFRA Holdings closed 49 restaurants, Denny’s franchisee Feast American Diners closed 15 restaurants and Dine Brands itself announced the possible closure of 100 company-owned IHOP units.
See which restaurant groups and franchisees closed units this year in the midst of COVID.