12 Struggling Chain Restaurants Not Worth Going to Anymore

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Remember when restaurants like Olive Garden and Ruby Tuesday were the go-to dinner spots?

Rising menu prices and declining food quality have turned these familiar favorites into wastes of money.

Save your wallet and skip these struggling chain restaurants that may not last much longer:

Olive Garden

Even with the allure of never-ending soup, salad, and breadsticks, Olive Garden struggles to hold up. While many criticize the chain’s inauthentic, overly manufactured Italian ambiance and cuisine, it’s still been a past favorite among casual diners.

However, Olive Garden’s popularity is waning. As of 2024, sales were down 1.5% across all locations open for at least 16 months.

Red Robin

While Red Robin’s customer satisfaction rose by 6% in 2024, its sales are down almost 1%. Higher food and labor costs have made it challenging for the casual dining chain to increase profits.

Red Robin has been implementing new strategies to appeal to more diners, including bottomless French fries and a newly improved loyalty program. However, many customers prefer to satisfy their burger cravings for less at places like McDonald’s.

TGI Fridays

The end of TGI Fridays may be imminent. In 2024, the 60-year-old chain restaurant abruptly closed 36 locations it cited as underperforming.

TGI Fridays is struggling to remain relevant in a changing casual dining scene. Despite regularly refreshing its menu, diners prefer rivals like Chili’s, which has seen a 3.5% increase in sales this year.

Cracker Barrel

Cracker Barrel’s CEO has admitted the chain faces accusations of being outdated and losing relevance. The chain’s rustic aesthetic fails to hold up against trendy, Instagram-worthy brunch spots that have recently emerged. While there are plans to introduce new menu items and revamp the restaurant’s design, it’s unclear how Cracker Barrel will fare.

Red Lobster

Red Lobster used to be a popular dining choice for its cheddar biscuits and seafood entrees. One of the chain’s most iconic offerings is the Endless Shrimp, first introduced in 2004.

In 2023, Red Lobster raised the price of this deal from $20 to $25 after significant financial losses—reportedly up to $11 million in a single quarter. The chain continues to flounder, filing for Chapter 11 bankruptcy in 2024, though it announced plans to restructure the company several months later.

IHOP

IHOP sales dropped by 1.7% in the first quarter of 2024, and things aren’t looking up. The chain is famous for staying open 24/7, 365 days a year.

However, many diners are ditching the pancake-centric spot to favor restaurants that better accommodate various dietary preferences, like low-carb and vegan. IHOP has also been slow to adapt in other areas, such as introducing online ordering in late 2017—far behind similar competitors.

Applebee’s

35 Applebee’s locations will close in 2024, a telltale sign of the chain’s struggle to remain profitable. Though Applebee’s has been a classic go-to for reasonably priced drinks and appetizers, its popularity has declined since peaking in the early 2000s, when it had 1,500 locations open worldwide.

With the rise of new favorites like Panera Bread and Chipotle, Applebee’s has almost entirely fallen to the wayside. Mashed cites the chain’s lack of trendiness and diminishing food quality as the biggest reasons customers forgo dining there.

Denny’s

Denny’s is nowhere near as popular as it once was years ago. The chain, famous for its Grand Slam breakfast platter, has been steadily shutting down locations since 2022.

Executives blame these closures on the recent shift toward cooking at home in light of inflation driving up the cost to eat out. Denny’s sales have dropped 6% since 2023, and it’s uncertain whether the chain will successfully pivot and become profitable again.

Ruby Tuesday

Ruby Tuesday has fallen so far off the map that many consumers have altogether forgotten about the once-beloved chain. In its heyday in the mid-2000s, there were 945 Ruby Tuesday restaurants nationwide.

Today, that number has dwindled to around 200. Ruby Tuesday filed for bankruptcy in 2020 but exited in 2021, leaving the chain’s future uncertain.

Outback Steakhouse

Diners don’t have the same taste for Australian food as they once did. Traffic to Outback Steakhouse has declined by almost 4% in 2024.

With consumers increasingly seeking wallet-friendly options, the Aussie-inspired chain has been introducing more value deals, like a 3-course meal for $15. Outback will likely implement more changes soon to widen its appeal to cost-conscious diners.

Hooters

The Hooters chain may not survive for much longer—the number of locations worldwide has dropped by 12% since 2018. Some credit this decline to the restaurant’s outdated menu, which has remained mostly unchanged in recent years. Others point to the chain’s niche dining culture and atmosphere as a potential turnoff to some diners.

Boston Market

Years ago, Boston Market was at the forefront of casual dining throughout the 1990s. However, its success began to wane between 2007 and 2020, when almost 40% of its worldwide locations were closed.

Only 27 Boston Markets remain, and they might not last long. The chain restaurant has been hit with multiple lawsuits for unpaid bills and employee wages, tanking its reputation for good.

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