In recent years, fast food and restaurant closures have become an increasingly critical issue across the US, shaping the business landscape in both large cities and small towns. This report dives into the data, presenting an in-depth analysis of where these closures are most prevalent and which chains have been hit the hardest. Understanding these patterns is essential for realtors, fast-food and restaurant owners, as well as other stakeholders in the industry to make informed decisions. With insights backed by rigorous data collection and analysis of 97 fast food and restaurant chains, this article aims to offer a comprehensive view of the changing American fast food and restaurant industry.
When it comes to fast food and restaurant chains closing in 2023, multiple factors come into play. If a restaurant is tucked away where nobody can find it, or if it’s drowning in competition, it’s likely to close its doors. We’ve done the research, and here’s what the data on closed restaurant chains and the list of permanently closed restaurants and fast food chains reveal.
Fast Food and Restaurant Closures: Location-Wise Analysis
Fast food and restaurant closures have been hitting the US hard, and it’s crucial to zoom in on the location aspect to understand the whole picture.
States With the Most Fast Food and Restaurant Closures in the US
California, Texas, and New York are the leading states in the US when it comes to the trend of fast food and restaurant chains closing in 2023. These states have seen the highest numbers, significantly contributing to the growing list of permanently closed restaurants and fast food chains in the US. If you’re a realtor, restaurant owner, or have any stake in the industry, it’s crucial to understand the trends and reasons behind these closures.
Our data shows that, as of August 2023, 379 fast food and restaurant chains closed in California, making it the most saturated market, followed by Texas (310) and New York (196), when 97 fast food and restaurant chains were studied. Knowing the why and where of these closures can offer valuable lessons for anyone looking to succeed in the restaurant industry. Being aware of the pitfalls in these particular states can guide business decisions, whether you’re planning for a new location or trying to boost an existing one.
California: Fast Food and Restaurant Closures in 2023
In the national landscape of fast food and restaurant chains closing in 2023, California stands out for its alarmingly high numbers. According to our data, Subway and Sweetgreen are leading the pack of closed restaurant chains in California when 97 fast food and restaurant chains were studied.
Cities With the Most Fast Food and Restaurant Closures in the US
When you zoom into specific cities like New York and Houston, these urban hubs have become battlegrounds for fast food and restaurant chains closing in 2023. If you’re a realtor, restaurant owner, or someone involved in a related business, paying attention to these city-specific trends is crucial.
As of August 2023, 61 fast food and restaurant chains have closed down in New York alone when 97 fast food and restaurant chains were studied. This is followed by Houston (53) and Chicago (49). Each city has its unique challenges, and understanding them is key to avoiding becoming another name on the list of permanently closed restaurants and fast food chains. Being aware of the challenges specific to these cities is essential to making smarter business choices.
Fast Food and Restaurant Chains Closing in 2023
For businesses relying on location-based data, understanding the landscape of closed restaurant chains is more important than ever. Knowing which brands are contracting helps in making data-driven decisions, be it for choosing a franchise to invest in or selecting a retail location with sustainable foot traffic.
Among fast food and restaurant chains closing in 2023, Subway takes the lead, with a staggering 26.26% of its locations shutting their doors. In comparison, Dunkin’ Donuts and Pizza Hut trail behind with closures at 6.85% and 6.17%, respectively. These figures underline the severity of challenges Subway is currently grappling with, far outpacing its competitors.
Subway Outlets in the US
Subway not only leads the pack in nationwide closures among fast food and restaurant chains closing in 2023, but it also sees a significant concentration of these closures in specific states. A stark example is Texas, which has reported the highest number of closed Subway stores among all US states.
The Curious Case of Subway
Interestingly, even as Subway dominates the list of fast food and restaurant chains closing in 2023, it’s crucial to note that the chain still holds the most extensive footprint in the United States.
Subway’s situation serves as an important case study for other fast-food chains. The large number of closures shouldn’t overshadow the fact that Subway still dominates in terms of total locations. Subway operates a grand total of 20,603 locations across the country as of August 2023.
It is interesting to note that even though Chick-fil-A doesn’t come in the top fast food and restaurant chains in terms of the number of locations, it is one of America’s favorite fast food chains.
The fast food and restaurant industry in the US is undergoing significant changes, as evidenced by the increasing number of closures in 2023. From big states like California, Texas, and New York to cities like New York City and Houston, the list of permanently closed fast food chains and restaurants continues to grow. Understanding these trends is indispensable for stakeholders like realtors and restaurant owners who aim to make data-driven decisions.
ScrapeHero’s data store serves as a reliable resource for stakeholders seeking a broad and detailed understanding of brand locations across industries. You can also subscribe to our store data plans and get the datasets with data points relevant to your business. Whether you’re analyzing trends in store closures or scoping out the competition, our data can provide the insights you need.
Frequently Asked Questions (FAQ)
- How many subways have closed in the US?
Subway had been facing a series of challenges that led to the closing of several locations in the United States. It has shut down 571 locations in 2022 in the US.
- Why is Burger King closing so many locations in the US?
The CEO of fast food giant Burger King has declared that the company will close down 300 to 400 restaurants that aren’t meeting performance goals in 2023 to stay ahead in the market. This is part of a strategic effort to concentrate on outlets that are more profitable.
- Why are fast food restaurants so close together?
Fast food restaurants are often close together for several strategic reasons:
- High Traffic Areas: Locations near highways, malls, or downtown districts naturally attract more people. Multiple fast food chains want to capitalize on that footfall.
- Consumer Psychology: Being close to competitors puts a brand in the ‘consideration set’ when customers make quick choices. It’s why you often see a McDonald’s near a Burger King.
- Cost Savings: Businesses can save on advertising and utilities when located near competitors. They benefit from the existing customer traffic generated collectively by the area.
- Market Research: Being near competitors allows for easier benchmarking and competitive analysis. This helps in setting prices, offers, and services.
- Agglomeration Benefits: Clustering enables easier supply chain management, and companies can benefit from each other’s workforce.
- Is fast food losing popularity?
The fast food industry has experienced mixed trends, which suggests that it’s not a straightforward issue of losing or gaining popularity. While there are pressures on the industry, there are also new opportunities and adaptations that are keeping it relevant.
- What is the state of fast food and restaurant closures in California?
California, Texas, and New York are the leading states in the US when it comes to the trend of fast food and restaurant chains closing in 2023. Our data shows that, as of August 2023, 379 fast food and restaurant chains closed in California, making it the most saturated market, followed by Texas (310) and New York (196), when 97 fast food and restaurant chains were studied. Subway and Sweetgreen are leading the pack of closed restaurant chains in California.