11 Beloved Restaurant Chains That Might Not Survive 2026

A Brutal Year of Bankruptcies

The restaurant industry just had one of its roughest years in decades.

Since 2020, food and labor costs have each climbed about 35%, and many chains simply could not keep up.

Bankruptcies piled up throughout 2025, and some of the names on the chopping block are places you have probably eaten at for years. A few might pull through with new ownership or restructuring.

Others are running out of time. Here are 11 chains that could disappear before 2026 is over.

Food and Labor Costs Up 35%

The math stopped working for a lot of restaurants.

Menu prices have risen 31% since February 2020, according to the National Restaurant Association, and that still is not enough to cover expenses.

Food and labor each eat up about 33 cents of every dollar a restaurant brings in. That leaves a profit margin of around 5% in a good year.

When beef prices jump 62% and labor costs keep climbing due to minimum wage hikes across multiple states, even popular chains start bleeding money.

Casual dining got hit the hardest because customers expect affordable prices but operating costs keep rising.

Bar Louie Down to 39 Locations

This Texas-based gastrobar chain was known for its martinis and upscale pub food. In 2018,Bar Louie had more than 130 locations across the country.

Then the pandemic hit, and the chain filed for Chapter 11 bankruptcy in 2020. That did not fix the problems.

Bar Louie filed for bankruptcy again in March 2025, and by October, only 39 locations remained. The company listed assets between $1 million and $10 million but debts between $50 million and $100 million.

A new ownership group bought the remaining stores in October 2025, but whether that saves the brand remains unclear.

Boston Market Sued Over 150 Times

Boston Market once had more than 1,000 locations serving rotisserie chicken and homestyle sides. The chain has been troubled for decades, filing its first bankruptcy back in 1998 and getting bought by McDonald’s.

But things got worse after Jay Pandya purchased the company in 2020.

Since then, Boston Market has been sued more than 150 times in state and federal courts for unpaid bills. In 2024, a court ordered the chain to pay US Foods $15 million.

About 95% of locations have closed since late 2022, leaving an estimated 16 stores. Most are listed as temporarily closed on Google Maps.

Joe’s Crab Shack Shrinks to 15

Running a seafood restaurant is expensive because the product costs a lot and customers expect big portions.

Joe’s Crab Shack built its brand on affordable crab and shrimp in a casual setting, but that model became harder to sustain. The chain once had more than 150 locations.

By October 2025, that number had dropped to 18. A month later, only 15 remained.

The chain has not filed for bankruptcy, but the rapid closures suggest it is struggling to find a path forward. If Joe’s cannot figure out how to make money on seafood, 2026 could be its last year.

Iron Hill Brewery Closes Overnight

This regional brewpub chain in New Jersey, Pennsylvania, and Delaware shocked everyone in September 2025. All 16 locations closed without warning.

Some employees showed up for their shifts and found out the restaurants were gone. Two weeks later, Iron Hill filed for Chapter 7 bankruptcy, which means immediate liquidation rather than restructuring.

The company had just $125,000 in cash and more than $20 million in debt. A restaurateur named Jeff Crivello bought 10 of the locations in November 2025.

Three will become a different brewery concept. The other seven might reopen as Iron Hill or something else entirely.

On the Border Shutters 77 Stores

On the Border opened in Dallas in 1982 and grew to about 160 locations selling Tex-Mex food. You might recognize the brand from its tortilla chips sold in grocery stores.

But the restaurants were drowning in debt. In March 2025, the chain filed for Chapter 11 bankruptcy and closed 77 locations in one sweep.

The company listed debts of $25 million and blamed rising costs, labor issues, and changing customer habits. About 57 locations remained open as of November 2025.

The closures appear to have stopped the bleeding for now, but the chain described its situation as a severe liquidity crisis.

Bertucci’s Files Bankruptcy Three Times

This New England Italian chain was famous for its brick oven pizzas and fresh rolls. In 1989, USA Today named it one of the top 10 pizza restaurants in the country.

By the 2000s, Bertucci’s had around 100 locations. Then it started filing for bankruptcy.

The first filing came in 2018. The second came in 2022, blamed on the pandemic.

The third came in April 2025, citing inflation and high food costs. The chain is now down to about 12 locations, mostly in Massachusetts.

Bertucci’s is trying a new fast-casual concept called Bertucci’s Pronto, but similar pivots have failed for other struggling chains.

Smokey Bones Converting 19 Stores

Smokey Bones had about 60 locations in 2023 serving BBQ and burgers. But beef prices have jumped more than 60% since 2020, and that hit the chain hard.

In September 2025, the parent company announced that 15 locations would close and 19 others would be converted into Twin Peaks restaurants, a different concept that performs much better. The average Twin Peaks location brings in $7.8 million compared to just $3. 5 million for Smokey Bones.

The remaining 26 Smokey Bones locations are profitable for now, but the company is looking to turn some into franchises, which could have mixed results.

Abuelo’s Down to 13 Locations

Abuelo’s served scratch-made Mexican food in a slightly upscale setting. The Texas-based chain grew to about 40 locations at its peak.

But sales dropped more than 15% last year, and in September 2025, the company filed for Chapter 11 bankruptcy with just 16 locations remaining. It listed debts between $10 million and $50 million.

Abuelo’s told customers the filing was just for financial restructuring and nothing would change. But three more locations closed in the two months after the filing.

Only 13 remain, mostly in Texas. The chain joins several other Mexican restaurants that declared bankruptcy in recent years.

Planta Shrinks to 7 Locations

Planta tried to make vegan dining trendy and upscale. The chain had 18 locations and an Instagram-friendly atmosphere.

But only about 5% of Americans identify as vegetarian or vegan, so the customer base was limited from the start. In May 2025, Planta filed for Chapter 11 bankruptcy and closed multiple locations.

The company blamed rising labor and food costs, high rent payments, and fees from third-party delivery apps. Only seven locations remain, mostly in large cities like Toronto, Los Angeles, and New York.

New owners bought the remaining stores in September 2025, but the chain’s niche appeal makes a comeback difficult.

Pie Five Loses 80% of Its Stores

Pie Five offered customizable pizzas in a fast-casual setting, similar to competitors like MOD Pizza. But the model has struggled across the industry.

Customers worry that busy or understaffed locations will mess up their custom orders. Pie Five has closed more than 80% of its locations since 2017 and is now down to just 17 stores.

Sales dropped from $16. 6 million to $11 million in fiscal year 2025.

The parent company, RAVE Restaurant Group, said in its earnings report that it expects the number of Pie Five locations to keep shrinking. That is not exactly a vote of confidence.

The Rock Wood Fired Pizza Down to 1

The Rock Wood Fired Pizza had been making scratch pizzas in Washington State for 30 years. The chain grew to seven locations across Washington, Oregon, and Colorado.

Then in October 2025, ownership announced that six locations would close, leaving only one store in Auburn, Washington.

Locals posted tributes online, sharing memories of birthday parties, first dates, and college jobs at the restaurant. Some promised to support the last remaining location.

Whether that is enough to keep The Rock alive through 2026 depends on how loyal those customers turn out to be.

This article was created with AI assistance and human editing.

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