In recent times, some well-known restaurant chains that many people love have been facing financial trouble. Since 2023, several franchises have filed for bankruptcy, leaving many customers worried about whether their favourite food joints will shut down or stop serving the dishes they enjoy. With changing customer habits, rising prices, and lingering effects of the COVID-19 pandemic, the food industry is going through a tough time.
Bankruptcy Hits Big Food Chains Again in 2025
So far in 2025, at least three popular restaurant brands have filed for bankruptcy. And the year is just getting started. This follows a tough 2023, when famous names like Red Lobster, TGI Fridays, and BurgerFi also struggled to stay open. Some of these chains had to close several outlets, while others tried to save themselves by restructuring their business under Chapter 11 bankruptcy.
Chapter 11 is a type of legal protection in the US that allows companies to reorganise their debts and keep running, instead of shutting down completely. It gives businesses a second chance while they work on solving their money problems.
Reasons Behind the Financial Troubles
Many restaurant owners and experts believe that changing customer behaviour is one of the biggest reasons behind these bankruptcies. During the pandemic, more people got used to eating at home or ordering online. That shift hasn’t fully reversed, and some restaurants are still struggling to bring back regular in-person diners.
Inflation is another major problem. The cost of ingredients, cooking gas, and labour has gone up sharply. This means restaurants have to spend more money just to make the same food. If they raise menu prices too much, they risk losing customers. But if they don’t, they lose profits. It’s a difficult balance.
Supply chain issues are also still affecting the industry. Some restaurants find it hard to get the items they need on time, which disrupts their service and increases costs.
Hooters Joins the List of Bankrupt Chains
Recently, the popular US-based chain Hooters filed for bankruptcy in April 2025, after rumours had been circulating for weeks. The company is trying to keep some locations running while it sorts out its financial situation. Just like other struggling chains, Hooters is hoping to bounce back stronger, but nothing is guaranteed.
What This Means for Customers
If you love eating out at places like Hooters or TGI Fridays, you might notice changes soon. Some branches could close down, menus might get smaller, or prices could increase. Restaurants are trying different ways to stay open, but not all of them will succeed.
Customers who enjoy dining out may want to check whether their local outlet is still operating or offering the same menu items. It’s always good to keep an eye on news updates or the restaurant’s official website or social media pages.
The fast food and casual dining industry is facing real challenges. From changes in how people eat, to rising costs and delayed supplies, the road ahead looks uncertain for many restaurant chains. Bankruptcy filings like those seen in 2023 and 2025 show that even big names aren’t safe from money problems. While some chains may recover through restructuring, others may disappear altogether. For now, food lovers should prepare for possible changes at their favourite restaurants.