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.
Chipotle
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.
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.
Noodles & Company
Year Established: 1995
Estimated Branch Closures: 55 Branches
Known as a quick and easy pasta joint, Noodles & Company is fairly new on the chain restaurant scene. Still, the company grew quickly from $300,000 in revenue during its opening year in 1995, to over $300 million in 2013.
Unfortunately, tragedy struck in 2016. After a few years of declining stock, Noodles & Company experienced a data breach that put the account information of hundreds of debit and credit cards at risk. Although the company handled it as well as could be expected, sales continued to decline, leading to many closures for the once-popular noodle joint.
Friendly's
Year Established: 1935
Estimated Branch Closures: 37 Branches
Friendly's was founded in 1935 in Springfield, Massachusetts. Almost no restaurant chain has faced as many ups and downs as this East Coast-based family restaurant has. The company has faced numerous emerging bankruptcies and has had to redo its menus and strategies several times over the years. But despite all of its troubles, it has managed to survive.
Friendly's currently holds around 10,000 employees, and was last cited as having 157 locations. Many believe that it will keep on going for many more decades, as the company was originally founded during the Great Depression and still managed to make it and get its name known throughout America. That being said, the chain does have plans to close several key locations this year that have been vastly underperforming over the years.