The eight fast food chains are disappearing across America
America is known for its fast food – with national chains becoming institutions loved around the world.
But in a highly competitive market, it can be difficult for smaller chains to weather the storm, especially after the pandemic and with rising costs.
Across the country, once-popular brands are now disappearing as locations slowly close.
And these smaller chains aren’t the only ones. Even fast food giant Burger King announced that it will have to make a large number of closures this year.
In an effort to keep up with the rivals, CEO Joshua Kobza announced that the chain will close between 300 and 400 underperforming restaurants by 2023.
So which smaller fast food chains are in danger of disappearing?
Quiznos
Sandwich chain Quinzos has experienced a massive downturn since its heyday in the mid-2000s. In 2006, it had as many as 5,000 locations across the country.
In 2013, it was the second largest sandwich shop in the US behind Subway.
But by 2010, the number of locations had dropped to 2,800 and by 2016 to just 671, according to Restaurant business. By 2021, the chain was generating less than $100 million a year in sales and operating just 255 U.S. locations.
According to the latest data from Scrape HeroQuiznos has only 154 sandwich shops in the US.
A spokesperson for Quiznos said, “Quiznos recently signed a number of multi-unit development agreements with franchisees for dozens of new restaurants, and even plans to open restaurants in the US in the coming months, with more to follow next year.”
Krispy Kreme
Krispy Kreme is a household name around the world and has been a market leader since the opening of the first store in 1937.
Customers visiting the locations can see the fresh donuts come off the production line and enjoy them while they are still warm.
There are currently 374 stores in the US. Krispy Kreme declined to confirm how many stores it had a decade ago in 2013.
According to The sunthe brand announced multiple store closures in November 2022 as part of a changing business model – and plans to close more locations this year.
Rather than trying to open and keep Krispy Kreme franchises, the new focus would be on distributing fresh produce to both franchises and grocery and convenience stores across the country.
Cake Five
The clue is in the Pie Five name — the chain promised to allow customers to customize their own pizza toppings, and then they’d cook the pie in just five minutes.
In 2017, the restaurant had reached the benchmark of 100 stores, but according to the latest data from Scrape Herothere are currently only 25 locations left.
Boston market
After its glory days in the 1990s with about 1,200 locations in 1997, Boston Market now only has about 285 restaurants in the US.
Once famous for serving rotisserie chicken, the dish’s availability in supermarkets across the country has caused the restaurant’s position in the market to falter.
In 2021, the labor shortage put pressure on workers and led to a workers’ strike, according to Insiderresulting in the closure of ten percent of all stores.
“We must take steps to ensure that our operating structure supports long-term sustainability,” CEO Frances Allen said in a letter at the time.
“Part of that effort includes continuously analyzing our geographic footprint and real estate portfolio to assess the continued viability of locations.”
Steak ‘n Shake
It is estimated that there are now about 400 stores left in the US, according to the latest data from Scrape Herobut the chain has experienced a slow closing of outlets since its heyday.
Steak ‘n Shake had more than 620 stores nationwide in the first quarter of 2019, but Covid setbacks forced it to close nearly 60. In 2022, the burger chain closed another 30, but was able to remain profitable.
This may have been made possible in part by the use of a counter service model with kiosks.
The company has invested $50 million in the kiosks, which CEO Sardar Biglari said was important for the chain to keep pace with fast-service competitors.
Burger IM
This Israeli-born company has always set itself apart from its competitors through its non-traditional offerings, which include a Greek lamb burger and a falafel burger.
It was founded in Tel Aviv in 2011, before current owner and president, Oren Loni, bought the rights to the franchise and opened nearly 200 locations by 2016.
As of the end of 2019, there were more than 1,200 franchise agreements The daily meal.
In 2021, according to the outlet, the company settled a lawsuit with franchisees over allegedly misleading contracts that cost the company $57 million — and the number of outlets shrunk to just 125.
On its website, the brand now says it is no longer accepting franchise applications.
Crystal
Krystal confirmed that the restaurant currently has 287 locations in the United States.
The Georgia-based restaurant, which calls itself the South’s oldest fast-food chain, is known for its small burgers and late-night service.
The chain ran into trouble in 2020 and was forced to seek Chapter 11 bankruptcy protection.
The company said it owed between $50 million and $100 million to food suppliers, equipment companies and others.
At the time, it had about 300 restaurants in 10 states, but according to court documents, it had closed more than 40 restaurants in the previous year.
Taco Bueno
Taco Bueno started in 1967 in Abilene, Texas and sells a variety of tacos, burritos and nachos. As of 2016, it confirmed it had 178 restaurants in Texas, Oklahoma, Arkansas, New Mexico, Louisiana, Kansas and Missouri.
It currently has about 139, following a gradual series of closures and a buyout by Sun Holdings in 2019 as part of a court-ordered financial restructuring for the Tex-Mex company.