Year Established: 1972
Estimated Branch Closures: 10 Branches
While today’s Cheesecake Factory boasts large portion sizes and over-the-top decor, the chain restaurant started as a simple bakery in Los Angeles that grew to encompass around 211 branches all over the U.S. Even though this restaurant hasn’t dipped into the realm of bankruptcy, its revenue numbers aren’t exactly encouraging.
Featuring a novel-like menu filled with fatty foods, The Cheesecake Factory hasn’t adjusted to a changing landscape that demands healthier options. Although the restaurant has returned to its bakery roots by selling baked goods in supermarkets, it’s also closed down a few branches that just weren’t performing well.
Papa Murphy’s Pizza
Year Established: 1995
Estimated Branch Closures: 97 Branches
Yet another pizza chain that might be in the red, Papa Murphy’s is known for its signature “take and bake” model. A variety of uncooked pizzas are available in the store, and customers can choose the pie they want and pop it in the oven at home. Today, the franchise encompasses around 1,300 branches across America and Canada.
Although Papa Murphy’s is the fifth-largest pizza chain in America, it has still faced its fair share of financial problems. In order to increase revenue, the company turned its attention to closing down unprofitable stores, eliminating 97 branches.
Del Taco
Year Established: 1960
Estimated Branch Closures: 12 Branches
If you really want to try a great burrito, you might want to try grabbing a bite at one of the Del Taco Restaurants. The American fast food chain specializes in authentic Mexican cuisine and is currently spread out among almost 600 branches. Not bad for a chain that has been operating quite well for over five and a half decades.
It recently launched a marketing campaign with the slogan, "Celebrating the hardest working hands in fast food," as the company is proud of its near 10,000 employees. Unfortunately, Del Taco’s expansion into the East Coast wasn’t as successful as they had hoped, and they ended up having to shut down a few of these new branches, before they could even break even in revenue.
Roy Rogers
Year Established: 1968
Estimated Branch Closures: 48 Branches
Back in 1968, a chain of burger joints called RoBee’s House of Beef was bought by the Marriott Corporation hotel chain. It changed the name of the restaurant to Roy Rogers, after the popular Western actor by that name. The company launched an aggressive expansion campaign and managed to reach a whopping 600 locations.
However, over time, sales began dwindling, and the chain was left with what currently stands at around 48 branches. Since then, the burger chain has stayed relatively modest in its ambitions. It currently has a steady stream of revenue and will likely last for at least a few years longer.
Kona Grill
Year Established: 1998
Estimated Branch Closures: 42 Branches
While fast food restaurants are the leading types of food stores in the United States, there are some successful ethnic food brands as well. Kona Grill is an American cuisine, sushi, and cocktails restaurant, which currently owns and operates around 40 branches.
The sushi restaurant was originally opened in late 1998, and began expanding after a successful initial public opening which made almost $30 million. Despite its initial popularity, the company has since began losing over tens of millions of dollars on an annual basis, until they eventually filed for bankruptcy in early 2019.