Another beloved American diner is about to vanish from the map. Johnny Rockets at CityWalk Hollywood is officially closing its doors on July 1, giving fans just a short window to enjoy one last meal before it’s gone for good. This comes at a time when the U.S. casual dining industry is seeing a wave of closures, with major chains like Red Lobster, Applebee’s, and TGI Friday’s also struggling to stay afloat.
Johnny Rockets’ Closure: A Sign of the Times
The announcement of the City Walk Hollywood closure was first shared via a Facebook post, and quickly spread among online groups like Retail Dead or Alive, where fans expressed their disappointment and nostalgia.
Some shared stories of their favorite Johnny Rockets locations that had already closed, with one person commenting, “Santa Monica had two—now both are gone.” Others pointed to the rising cost of food compared to quality, saying the value just isn’t there anymore.
While California, Nevada, and Arizona still host a few remaining Johnny Rockets spots, most U.S. states now only have a handful left. The chain, once known for its retro vibe and diner-style menu, has been quietly shrinking over the past few years.
Why Are So Many Diners Closing?
The fall of Johnny Rockets in Hollywood is just one example of a bigger trend. The casual dining sector is in serious trouble, with a growing number of well-known names shutting down locations or announcing financial restructuring plans.
Red Lobster
The seafood chain has filed for bankruptcy and is currently closing underperforming locations. High operational costs and changing dining habits have hit the brand hard.
Jack In the Box
Planning to shut down 200 locations, Jack In the Box is trying to manage its debt while rolling out a new turnaround plan called “JACK on Track.” The company’s focus is now on simplification, debt control, and strengthening the core brand.
Applebee’s
Applebee’s is leaning into a new development model called “Lookin’ Good.” The plan includes remodeling existing stores and pairing Applebee’s with IHOP in dual-brand locations. This strategy has already shown success, with dual sites generating 1.5 to 2 times more revenue.
Denny’s
Though 150 Denny’s locations are expected to close by the end of 2025, the brand is pushing ahead with new openings and remodels. CEO Kelli Valade says their strategy is focused on driving profitability and growth, targeting $2.2 million in average unit volume (AUV) per location.
What’s Hurting the Diner Industry?
Several factors are behind the recent collapse of traditional diners and casual chains:
- Rising food and labor costs
- High debt loads from the pandemic era
- Changing customer habits, with more people ordering delivery or choosing fast-casual options
- Younger generations seeking modern dining experiences over classic diner vibes
- Real estate costs in prime locations making it difficult to stay profitable
What’s Next for Johnny Rockets?
It’s not yet clear what the long-term plan is for Johnny Rockets. The brand still has active locations in select states, but the steady decline suggests it may continue to quietly fade from the U.S. dining scene unless a major revival plan is introduced.
If you’re a fan, now’s the time to visit a location near you—while you still can.
Johnny Rockets joining the list of disappearing diner brands highlights the larger shift in the American restaurant scene. While some chains are trying bold new strategies to survive, others are simply shutting down. Whether due to rising costs or changing tastes, it’s clear that the classic American diner is fighting to stay relevant in 2025.