Year Established: 1993
Estimated Branch Closures: 65 Branches
Although Chipotle is an internet sensation known for on-demand Mexican food, a 2016 E. coli outbreak resulted in a massive dip in sales for the popular chain. While the outbreak ended quickly and only affected 55 people, the restaurant never fully overcame the health concerns associated with their food.
Although Chipotle managed to boast the highest sales in company history in the last two quarters, they’ve still had to close branches to recover from their 2016 losses. Another 65 branches are expected to close in the coming weeks, proving that Chipotle’s profits aren’t nearly as high as they should be.
Carrabba's
Year Established: 1986
Estimated Branch Closures: 43 Branches
The Italian restaurant Carrabba's has been around for more than three decades. It has around 250 locations and can be found throughout the United States. With almost a billion dollars in annual revenue, it looks like Italian cuisine, and this restaurant in particular, is quite profitable.
In 2015, Carrabba's expanded its branches to international territories, starting with Brazil. However, this attempt seems to have backfired as they have recently had to close almost fifty branches that were under-performing. Despite the minor setback, Carrabba's is still managing to maintain an overall strong and steady growth curve, so keep your fingers crossed for this one.
Sbarro
Year Established: 1956
Estimated Branch Closures: 155 Branches
A staple in nearly every mall food court, Sbarro is an Italian fast food chain that serves pizza, pasta, and other carb-heavy dishes. While it’s the perfect place to stop in for a filling bite, Sbarro started a massive wave of closures in 2014. Since then, locations across the US have been shut down.
The company is focused on ridding itself of branches that aren’t profitable, while simultaneously revamping the well-performing branches to boost sales even further. It’s unclear when this process will end, but nearly half the existing branches have already gotten the boot.
Bob Evans
Year Established: 1953
Estimated Branch Closures: 27 Branches
When Bob Evans arrived on the scene in 1953, the popular home-style comfort food connected with a dedicated customer base. The restaurant even had to create their own sausage plants in order to serve the huge influx of hungry patrons. However, their farm-to-table appeal has diminished with the years.
Recently, the chain restaurant closed down 27 branches in an effort to increase their profits. The decision affected hundreds of workers, all of whom were offered termination benefits if they couldn’t relocate to a new location. Currently, it’s unclear if the closures will be enough to keep the popular chain afloat.
Luby’s
Year Established: 1947
Estimated Branch Closures: 10 Branches
Luby's prides itself on serving affordable food for over seven decades now. It was originally founded by Robert Luby in 1947, and hails from San Antonio, Texas. The cafeteria-like chain has around 80 branches in Austin, Dallas, Houston, San Antonio, the Rio Grande Valley, El Paso, and other cities throughout Texas.
Luby's has recently posted a loss in revenue after closing about 30 branches. It closed the third quarter of 2019 with a net loss of $5.3 million. The company is currently under lots of pressure from various investors to replace its management and close down underperforming branches. It’s still unclear how this move will end up, but hopefully they’ll manage to persevere.