3 Burger Chains That Are Closing Numerous Locations In 2025
In recent years, the U.S. restaurant industry has experienced a turbulent period, with economic pressures, shifting consumer habits, and rising operational costs forcing many once-thriving chains to scale back or shut down. While restaurant closures periodically happen, the number of restaurants shutting their doors in 2025 signals deeper challenges.
Among the problems faced by restaurants include inflation and labor shortages, which make it more difficult for chains to keep up with various trends and competitive pricing without sacrificing quality. Brands that have become American household names and opened hundreds of restaurants nationwide are being forced to make cutbacks and sacrifices.
Burger chains are no exception, with a few big names axing several stores in the first quarter of 2025 and more to come. Though burgers are quintessential American cuisine (over 60% of sandwiches sold in the U.S. are hamburgers), the market is also very saturated. If a consumer wants a burger, they have plenty of options. And with shoppers becoming more frugal with their hard-earned cash, some burger chains are struggling to stay afloat.
TGI Friday's
Unfortunately, TGI Friday's, is on the list of beloved restaurants we might lose this year. Known for its lively happy hours with cocktails and appetizers (some better than others), the chain has seen a sharp decline. In 2020, the chain operated 386 restaurants in the United States; As of March 2025, it is down to 123.
TGI Friday's made its debut in New York City in 1965, quickly gaining popularity for its burgers, appetizers, and classic American fare. However, more recently, it has seen a string of misses. Last November, the chain filed for bankruptcy but shared that its restaurants would stay open. In a press release, Rohit Manocha, Executive Chairman of TGI Friday's Inc., called the move "difficult but necessary." Since then, the chain has experienced some relief. In January, a judge agreed to let TGI Friday's to sell nine of its 39 corporate-owned restaurants, allowing the brand to lessen its debt by over $34 million.
Yet, this outcome was not enough to save TGI Friday's from several closures at the start of 2025. In January, the company's final four locations in Las Vegas were given the boot, turning the entire region into a TGI Friday's dead zone. Over 30 locations across New York, Ohio, New Hampshire, Massachusetts, Maryland, New York, and Pennsylvania were shut down in the same time frame, with more closures likely to come. This follows a rough year in 2024 that saw around 100 Friday's closures.
Wahlburgers
Bad news for Wahlburgers fans. Hy-Vee, the employee-owned Midwestern supermarket chain announced in January that it will be closing 79 of its in-store Wahlburgers locations. Hy-Vee first partnered with the fast food chain in 2018, later converting some of its Market Grille restaurants into Wahlburgers. Conveniently, shoppers can still grab a quick bite to eat at Hy-Vee. The supermarket is refreshing its dining strategy by replacing the burger joint with its Market Grille concept.
This is quite a blow for Wahlburgers, as many of its locations were inside Hy-Vee grocery stores. The closures leave the fast food chain with around 40 locations in the United States. Despite the setbacks, the team at Wahlburgers remains positive, with CEO Randy Sharpe noting that Wahlburgers has performed better in its standalone locations and the split is ultimately is for the best. Ideally, Wahlburgers will regain its footing soon, allowing fans to continue to enjoy the chain's juicy beef, fluffy potato buns, and signature Wahl sauce for years to come.
Jack in the Box
Established in 1951 in San Diego, California, Jack in the Box has seen more than its fair share of ups and downs over the years. Currently, the fast food chain is still perfecting its balancing act. In February 2025, the company announced the closure of six underperforming locations. Conversely, the burger chain also expanded, opening five new outlets in potential hotspots. This strategic approach may allow Jack in the Box to position itself for optimal success.
With minor setbacks, 2024 presented some difficulties for the burger chain. However, the restaurant managed to open multiple new locations, including five in and around Detroit. By the end of the year, Jack in the Box sales dropped by just 1.3%. Even with its slightly rocky start into 2025, Jack in the Box is committed to maintaining its relevance while honoring its legacy as a pioneer in the drive-thru industry.