Expect more restaurant bankruptcies in 2025
February 26, 2025

A growing number of major restaurant chains will likely continue to file for bankruptcy protection over the coming years as the industry struggles to manage the heavy debt it accumulated during the COVID-19 pandemic, according to bankruptcy attorney Daniel Gielchinsky.

“Restaurants that exist today may not exist in five years. They’ll be off the map,” Gielchinsky said. Additionally, consumers will “see a lot of restaurants with a decreased footprint,” he added.

The latest victim could be Hooters of America, which is considering filing for bankruptcy as a means of restructuring the restaurant chain and tackling its debt, sources recently told Bloomberg. The company would be the latest in a growing list of major chains such as TGI Friday’s, Denny’s, Ruby Tuesday, Rubio’s Coastal Grill and Red Lobster that have filed for protection in bankruptcy court.

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