Major Fast Food Chain to Close Hundreds of Restaurants
Fast food chains, including one iconic American eatery, are experiencing significant challenges due to changing consumer preferences and rising meal costs. The fast food industry has faced a difficult few years, and now one of the most popular chains is announcing multiple closures.
Industry-Wide Struggles
This year, numerous headlines have highlighted the industry's downturn. Chains like Jack-in-the-Box and Starbucks have shuttered hundreds of locations. Meanwhile, KFC, Del Taco, and Pizza Hut have all reported declines in sales. This follows a harsh 2024 for sit-down restaurants, with several well-known chains declaring bankruptcy within months of each other.
Wendy's Announces Store Closures
Wendy's recently joined the wave of restaurant closures. Interim CEO Ken Cook revealed during the company's Q3 earnings call that Wendy's plans to close a "mid single-digit percentage" of its stores, according to CNN.
- At the end of 2024, Wendy's operated just over 5,900 locations across the U.S.
- A closure of mid single-digit percentage stores suggests about 300 restaurants may be affected.
- This comes after the chain closed 140 locations last year.
Optimism for Future Growth
Cook expressed confidence in Wendy's overall health, noting that only a small portion of underperforming stores has been impacting the brand’s results. The chain is actively working to renovate existing locations and implement new technology aimed at boosting sales in struggling outlets.
"Wendy's is looking to close a mid single-digit percentage of its total stores," said interim CEO Ken Cook.
Author's summary: Wendy's plans to close around 300 underperforming restaurants while investing in renovations and tech upgrades, reflecting broader challenges in the fast food industry.