Year Established: 1995
Estimated Branch Closures: 97 Branches
Yet another pizza chain that might be in the red, Papa Murphy’s is known for its signature “take and bake” model. A variety of uncooked pizzas are available in the store, and customers can choose the pie they want and pop it in the oven at home. Today, the franchise encompasses around 1,300 branches across America and Canada.
Although Papa Murphy’s is the fifth-largest pizza chain in America, it has still faced its fair share of financial problems. In order to increase revenue, the company turned its attention to closing down unprofitable stores, eliminating 97 branches.
Houlihan’s
Year Established: 1972
Estimated Branch Closures: 12 Branches
A high-end restaurant focused on classic American fare, Houlihan’s believes in serving high-quality food and drinks in a casual environment. With a range of food offerings and a full bar, this restaurant chain was poised to be successful.
In November 2019, however, Houlihan’s filed for bankruptcy. The announcement was followed by the closure of 12 branches, leaving the company with only 44 remaining branches spread across 17 states. In December 2019, Houlihan’s Restaurant Inc. was purchased by Landry’s Inc. The future of the operation under new leadership is unclear.
Ruby Tuesday
Year Established: 1972
Estimated Branch Closures: 135 Branches
Ruby Tuesday is one of the most popular casual dining chains in the United States, due to (or despite) sharing its name with the iconic Rolling Stones song. The eatery is a major competitor with TGI Fridays and Applebee's, and currently has just over 450 locations. There has been a stark increase in locations closed throughout the past few years, as the chain used to hold almost a 1,000 branches open at its peak.
Since 2016, more than 120 of its locations have been closed, and it looks like the trend is only accelerating. Ruby Tuesday’s executive staff credits the loses to various income-related problems, but believes these branch closures will help them in the long run. We hope so too, as some competition in the industry can only benefit us, the consumers.
Del Taco
Year Established: 1960
Estimated Branch Closures: 12 Branches
If you really want to try a great burrito, you might want to try grabbing a bite at one of the Del Taco Restaurants. The American fast food chain specializes in authentic Mexican cuisine and is currently spread out among almost 600 branches. Not bad for a chain that has been operating quite well for over five and a half decades.
It recently launched a marketing campaign with the slogan, "Celebrating the hardest working hands in fast food," as the company is proud of its near 10,000 employees. Unfortunately, Del Taco’s expansion into the East Coast wasn’t as successful as they had hoped, and they ended up having to shut down a few of these new branches, before they could even break even in revenue.
The Cheesecake Factory
Year Established: 1972
Estimated Branch Closures: 10 Branches
While today’s Cheesecake Factory boasts large portion sizes and over-the-top decor, the chain restaurant started as a simple bakery in Los Angeles that grew to encompass around 211 branches all over the U.S. Even though this restaurant hasn’t dipped into the realm of bankruptcy, its revenue numbers aren’t exactly encouraging.
Featuring a novel-like menu filled with fatty foods, The Cheesecake Factory hasn’t adjusted to a changing landscape that demands healthier options. Although the restaurant has returned to its bakery roots by selling baked goods in supermarkets, it’s also closed down a few branches that just weren’t performing well.