Outline:
It’s becoming more frequent to hear about restaurants closing, yet the news tends to be most impactful when well-known places close their doors. These eateries are much more than just locations to dine; they have often become significant parts of their communities, connected to years of memories and local customs.
Even established restaurant chains have not been spared from this challenging trend. Over the past few years, several large food service companies have experienced widespread store shutdowns, with some declaring bankruptcy, as increasing expenses and growing financial obligations have made it hard for them to stay in business.
Established in 1972, Houlihan’s is a relaxed American dining and bar franchise that previously maintained a significant national footprint. Currently, the brand has 22 outlets across the country, as reported by itswebsite.
Although the figure remains notable, Houlihan’s has shut down several locations in recent years, greatly reducing its presence in various states.
Over the past few months, at least five Houlihan’s restaurants have closed their doors. Although there has been a series of shutdowns, the company that owns Houlihan’s, Landry’s, Inc., has not made any official comments about the closures; rather, the managers have chosen to put up handwritten signs at the restaurant entrances.
Recent Houlihan’s restaurant closures
- Noblesville, Indiana:Closed on January 1, 2026 (Source:Current Publishing)
- Hershey, Pennsylvania:Closed on December 31, 2025 (Source:abc27)
- Garland, Texas:Closed on August 24, 2025 (Source:Culture Map)
- Long Island, New York:Closed on January 1, 2026Source:Greater Long Island)
- Upper Arlington, Ohio:Closed on January 1, 2026 (Source:614NOW)
Houlihan’s parent company’s filing for Chapter 11 bankruptcy
Houlihan’s financial difficulties have been ongoing for many years. In 2019, HRI Holding Corp., the company that currently owns the brand, filed forChapter 11 bankruptcyin the U.S. Bankruptcy Court of the Delaware District, disclosing assets and liabilities ranging from $50 million to $100 million, as mentioned in thefiling.
The organization mentioned an expiring loan and “excessively high occupancy expenses” at numerous sites as major factors in its financial burden. The bankruptcy petition aimed to enable a sale, eventually resulting in an asset purchase agreement with Landry’s, Inc. for $40 million in cash.
More Restaurant Closures:
- A 21-year-old fast-food company is shutting down 20 locations as part of its efforts to make a comeback.
- A 17-year-old Mexican restaurant chain shuts down most of its locations following ICE raids
- Well-known coffee company shutting down its main office following bankruptcy
At that time, HRI managed 47 restaurants across 14 states, with 34 of them being Houlihan’s locations. Nevertheless, the bankruptcy filing did not cover 21 more franchised Houlihan’s restaurants.
HRI recorded $202 million in sales and roughly $9 million in profits for the 2019 fiscal year, as reported byNation’s Restaurant News.
Landry’s, Inc., which controls almost50 renowned restaurant brands, including Landry’s Seafood, Saltgrass Steak House, Bubba Gump Shrimp Co., and Mastro’s Restaurants, among others, purchased Houlihan’s with the intention of maintaining and expanding the brand’s heritage.
Closure of restaurants emerges as a concerning industry pattern
Houlihan’s is not the only restaurant chain experiencing shutdowns. The entire dining industry has been dealing with changing customer preferences, increasing expenses, and continued financial instability. As these challenges grow, even some of the largest and most well-known chains have had to shut down stores across the country.
Chains of restaurants that have recently shut down branches Establishments that have recently closed outlets Businesses that have recently discontinued locations Groups of restaurants that have recently ceased operations at certain sites Companies that have recently removed some of their dining spots
- Red Lobster: Filed for Chapter 11 bankruptcyin 2024 and closed down hundreds of locations (Source:The Street)
- Applebee’s:Expected to shut down 20 to 35 restaurants in 2024Source:Restaurant Dive)
- TGI Fridays:Filed for Chapter 11 bankruptcy in 2024 and has shut down hundreds of U.S. locations since then.Source:Restaurant Business News)
- Outback Steakhouse:Closed 21 restaurants as of November 2025 (Source:CNN)
- Romano’s Macaroni Grill:Recently shut down several locations, now only having nine restaurants across the country (Source:The Street)
Increasing expenses are transforming the restaurant sector
Inflationhas been a major factor in the industry’s challenges. Food prices outside the home increased by 3.7% over the 12 months ending September 2025, according to new data.United States Bureau of Labor Statistics data.
Over the past five years, the average restaurant has seen a rise of approximately 35% in both food and labor expenses, as reported by theNational Restaurant Association.
To counter these increased costs, the average price of menu items rose by 31% from February 2020 to April 2025, according to the U.S.Bureau of Labor Statistics data.
With increasing prices, customer visits have dropped by 1% throughout the food service sector during the quarter that ended in June 2025, as reported byCircana.
“This presents a major challenge for restaurants, as meals prepared at home directly replace the demand for dining out, leading to lower revenues and fewer customers as the demand moves toward grocery stores,” said a Coresight Research analyst.Sujeet Naik.
Although there are still difficulties, the industry has demonstrated signs of strength. Expenditure at restaurants and bars hit a record annual level of around $1.25 trillion in the second quarter of 2025, as reported by the Bureau of Economic Analysis.
“Although there are many challenges affecting both the industry and the overall economy, actual spending at restaurants and foodservice venues is still a bit higher than expected, which is a very positive indication,” saidNational Restaurant Association industry experts.
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