Fast Food Chains Are Closing Stores Across the U.S. and U.K - Here's Why It's Happening on Both Sides of the Atlantic

8th November 2025

In 2025, both the United States and the United Kingdom are witnessing a wave of restaurant and fast-food chain closures.

While the industry isn't collapsing, it's clearly reshaping itself trimming under-performing stores, consolidating older formats, and reacting to new economic and consumer realities.

Let's look at what's driving this trend, which brands are affected, and how the U.S. and U.K. compare.

The U.S. Big Chains, Big Cuts, and Bigger Pressures

Even iconic American brands are being forced to rethink their store networks. In 2024-25, several major players have announced hundreds of closures.

Key examples:

Wendy's plans to close 200-350 restaurants starting late 2025 as part of a turnaround plan targeting "under-performing" sites.

Subway shuttered a net 631 U.S. restaurants in 2024, shrinking below 20,000 domestic locations for the first time in decades.

Denny’s expects to close about 150 locations by the end of 2025 due to outdated sites and soft sales.

Jack in the Box will close 150-200 stores, mainly low-volume units on the West Coast.

Hardee’s and Red Robin are also scaling back, though at smaller levels.

Why U.S. Chains Are Closing Stores

Under-performing units: Older stores, poor locations, and redundant sites are being culled.

Economic headwinds: Higher labor, rent, utilities, and food costs, plus consumers dining out less amid inflation.

Fierce competition: From newer fast-casual formats and delivery platforms.

Strategic refocus: Many chains call this "footprint optimization" — close weak stores, reinvest in high-potential ones.

The message is clear: fewer stores, stronger networks. While closures sound alarming, most chains are not failing — they’re pruning to protect long-term profitability.

The U.K. Fewer Dine-Ins, Rising Costs, and a Changing High Street

The same story is unfolding in Britain, albeit on a smaller scale and with slightly different dynamics. Closures are hitting both fast-food and casual-dining operators.

Key examples:

Pizza Hut (UK dine-in arm) is closing 68 restaurants after its franchisee entered administration, affecting up to 1,200 jobs. Delivery-only outlets remain open.

Greggs, the popular bakery chain, closed 56 stores in early 2025 — though it also opened 87 new locations, showing a strategic reshuffle rather than outright decline.

Gusto, a mid-market Italian chain, is shutting 6 of its 13 sites.

Data from CGA by NIQ / AlixPartners shows that the U.K. saw two restaurant closures per day in the first half of 2025, leaving the sector 14% smaller than pre-pandemic.

Why U.K. Chains Are Closing Stores

Soaring operational costs: Energy, rent, business rates, and wages have all climbed sharply.

Changing dining habits: Consumers are prioritizing value and convenience, favouring take-away and delivery over mid-range sit-downs.

High-street decline: Falling foot traffic in many towns makes it harder for restaurants to stay profitable.

Format evolution: Some chains are closing dine-in restaurants but expanding smaller, more efficient delivery hubs.

Like the U.S., closures in the U.K. often accompany redeployment shifting from older models to new, tech-driven or take-away-focused strategies.

Both markets are experiencing strategic contraction, not meltdown. Chains are cutting dead weight to focus on efficiency, new technology, and changing customer habits. Closures, in this context, are a sign of adaptation.

What It Means for the Future of Fast Food

The fast-food and casual-dining industry is entering a new phase:

Smaller footprints, smarter formats. Expect more drive-thrus, kiosks, ghost kitchens, and delivery-only hubs.

Value and convenience rule. Menus will continue to streamline, promotions will focus on affordability.

Tech-enabled operations. Mobile ordering, dynamic pricing, and automation are becoming essential to offset rising costs.

While it may seem bleak to see beloved chains close stores, this reshaping could lead to a leaner, more efficient, and more customer-focused fast-food landscape in both the U.S. and U.K.

The closures sweeping across American and British fast-food chains are less about failure — and more about evolution. In a world of tight margins, expensive labour, and shifting consumer habits, only those brands that can adapt their models will thrive in the next decade of fast food.