You may have noticed how many traditional burger chains are struggling to stay afloat. Elite Burger Joint’s recent bankruptcy highlights the pressures many face in today’s economy—rising costs, shifting consumer habits, and limited flexibility. As the industry faces ongoing challenges, it’s worth considering what this means for the future of fast-food and what lessons can be learned from those who couldn’t adapt fast enough.
Have you noticed how many burger chains are shutting down these days? It’s hard not to see the growing number of closures and bankruptcies sweeping through the casual dining scene. The economic squeeze is tightening, and burger joints—once seen as fast, affordable, and popular—are feeling the heat more than ever.
In early 2024, restaurants made up 28% of all large corporate bankruptcies, and many of these are in the burger and casual dining sectors. The combination of inflation, rising wages, and declining foot traffic has made it nearly impossible for some chains to stay afloat. You might wonder why these once-thriving brands are falling apart now, especially when burgers have always been a staple. Demonstrating problem-solving abilities is crucial for leaders in this challenging environment.
Nearly 30% of large bankruptcies in 2024 involve burger and casual dining chains struggling with inflation and declining traffic.
The impact is evident across the board. Major chains like TGI Fridays, which has long had a burger focus, filed for Chapter 11 late in 2024. They’ve cut their U.S. locations from 270 at the beginning of the year to just over 130 by early 2025, losing nearly two-thirds of their footprint in less than a year. This isn’t an isolated case. UK-based Almost Famous closed all its locations early 2025, citing high costs and pandemic effects despite strong customer reviews.
Red Robin, another burger favorite, is closing around 70 locations, trying to cope with financial struggles. Even Bar Louie, with assets between $1 million and $10 million, listed liabilities up to $100 million when it filed for bankruptcy, shedding over 80 locations since 2020.
These closures are spreading across states, with chains like TGI Fridays shutting 30 northeast locations, including Ohio and Maryland, in early 2025. On the Border Mexican Grill & Cantina closed over 70 locations, though it still operates across 18 states. Franchisees for Burger King, Subway, and Pizza Hut are also feeling the pinch, filing multiple bankruptcies that affect hundreds of individual locations.
Some brands continue international and franchised operations, but the core U.S. footprint is shrinking fast. Financially, the picture looks grim. Bar Louie’s assets and liabilities show how strained these companies are, with some selling off restaurants—like Buca di Beppo, which sold 44 locations for $27 million during its reorganization.
Rising operational costs, especially wages and ingredients, have squeezed margins. COVID-19’s lingering effects reduced in-person visits and boosted delivery, shifting consumer habits away from dine-in experiences. Competition from fast-casual eateries and delivery-centric concepts has reshaped what customers want, leaving traditional burger chains struggling to adapt. According to recent industry reports, the number of bankruptcy filings involving burger chains continues to rise as the industry struggles to recover from economic pressures. Failed sales deals and mismanagement only add to their woes, making survival a challenge in today’s tough economic climate.
