As 2026 draws near, the fast food sector in the U.S. is witnessing a significant surge in restaurant closures, indicative of wider challenges facing the industry due to inflation, increasing labour expenses, and changing consumer preferences.
- Why are restaurants closing in the US?
- Major Fast Food Chains Announcing Closures
- FAQ’s On Fast Food Restaurants Closing In US in 2026
- What are the reasons for the closure of fast food restaurants in 2026?
- Which major fast food chain is anticipated to close the highest number of stores?
- Are the closures of fast food restaurants occurring on a national scale, or are they more regional?
- Is McDonald’s planning to close a significant number of its stores?
Prominent chains are reassessing their presence by closing down less profitable outlets and prioritising profitability along with long-term viability. Below is a comprehensive and current overview of the anticipated closures in 2026, the underlying causes, and the brands that are most impacted.
Why are restaurants closing in the US?
The increase in food prices, especially for beef and dairy products, combined with inflation and labour costs, has put considerable pressure on profit margins for many restaurant chains. Restaurants operating in older or less efficient locations are finding it increasingly difficult to remain profitable in today’s economic landscape.
Major chains often close down restaurants that do not perform well compared to nearby establishments. This approach is referred to as ‘portfolio optimisation’, removing obstacles to overall sales and facilitating more investment in thriving locations.
Major Fast Food Chains Announcing Closures
Here is a summary of notable fast food and restaurant brands that are announcing closures, which will influence operations through 2026:
Wendy’s
- Wendy’s is set to close between 200 and 350 U.S. restaurants as part of a significant restructuring plan called Project Fresh, impacting around 4–6% of its approximately 6,000 domestic locations.
- These closures will be implemented gradually from late 2025 into 2026, concentrating on sites that have consistently underperformed to boost profitability and enable investment in the remaining outlets.
- While a comprehensive list of locations has not been provided, closures are expected to occur nationwide.
Jack in the Box
- Jack in the Box is planning to shut down up to 150–200 underperforming locations by 2026 under its “Jack on Track” turnaround initiative.
- By the end of 2025, 80–120 stores will have been closed, with additional closures scheduled through 2026 as franchise agreements expire.
- These closures are a response to falling sales, rising expenses, and considerable debt, as the company strives for financial stability and a more efficient operational model.
- Jack in the Box operates around 2,200 restaurants, particularly in California, Texas, and Arizona, making it one of the largest mid-tier fast food chains.
Other Chain Trends
Although not strictly fast food, several restaurant chains linked to casual dining and franchise dining are reducing their locations, contributing to the wider industry contraction:
- Denny’s has indicated closures extending into early 2026 as part of ownership changes and performance optimisation.
- Red Lobster competitors and other casual dining brands have also scaled back in recent years.
FAQ’s On Fast Food Restaurants Closing In US in 2026
What are the reasons for the closure of fast food restaurants in 2026?
The closures are primarily attributed to food costs driven by inflation, increasing labour costs, and locations that do not perform well enough to achieve satisfactory sales.
Which major fast food chain is anticipated to close the highest number of stores?
Wendy’s is projected to shut down between 200 and 350 restaurants across the United States by 2026.
Are the closures of fast food restaurants occurring on a national scale, or are they more regional?
The closures are occurring nationwide, but they tend to concentrate on markets that are underperforming rather than being limited to specific regions.
Is McDonald’s planning to close a significant number of its stores?
McDonald’s has not indicated plans for widespread closures similar to those of Wendy’s or Jack in the Box; its locations are comparatively stable.
