Wendy’s and 9 other major restaurants that are closing in May
Consumers have spent years trying to save money on groceries, adjust pricier takeout, and tighten household budgets. That pullback is now reaching restaurant chains in a more visible way, with several major brands trimming locations in May as weaker traffic, rising labor costs, and expensive leases continue to pressure margins.
For many national chains, these closures are just for certain locations and not the entire company. Some are walking away from underperforming stores, while others are reworking their entire operations and looking for better markets. Here are 10 major restaurant chains closing locations in May.
Editor’s note: Closure plans, timelines, and affected locations are based on company statements and published reports from early 2026. Store-level timing and availability may vary by market.
1. Wendy’s
Wendy’s is one of the largest restaurant chains reducing its locations this spring. The burger giant said it expects to trim roughly 5% to 6% of its system, which is hundreds of restaurants, after prolonged bad sales at lower-volume stores. Most closures are tied to aging locations with weaker traffic and thinner margins.
Where closures land in May is still market-specific, though franchise-heavy regions appear most exposed. Connecticut has already seen at least one recent closure, and more are expected to surface through late spring as franchise operators consolidate weaker units.
2. Pizza Hut
Pizza Hut is closing 250 U.S. locations that are not doing well in the first half of 2026, with May likely to absorb a meaningful share of that reduction. Parent company Yum Brands has framed the move as part of a bigger strategic review as it rethinks older dine-in units and lagging stores.
Many of the restaurants at risk are older, less efficient locations that have struggled to keep pace with delivery-first competition. The closures are spread across the U.S., though exact addresses are still being determined.
3. Papa John’s
Papa John’s said it plans to close 200 restaurants in 2026, with another 100 projected for 2027. The company has pointed to weaker unit economics at older stores, especially those open for more than a decade and producing lower annual sales.
Many of the affected restaurants are lower-volume stores generating less than $600,000 annually, a threshold that has become harder to sustain amid softer demand and higher operating costs. May closures are expected to continue as franchisees streamline portfolios.
4. Applebee’s
Applebee’s is closing more restaurants in 2026 as parent company Dine Brands shifts toward dual-branded formats and tighter cost controls. While the chain is not collapsing, it is steadily exiting weaker stores as traffic remains uneven in traditional casual dining.
The closures are concentrated in underperforming legacy locations, especially where older stand-alone units no longer justify operating costs. May is likely to bring more quiet closures as Applebee’s leans further into smaller, more efficient growth models.
5. Bahama Breeze
Bahama Breeze’s shutdown is among the most sweeping restaurant closures of 2026. Parent company Darden has already moved to close all 28 remaining locations, with May marking the first full month after much of the chain’s formal wind-down.
Fourteen restaurants have closed permanently, while others are being converted into stronger Darden concepts. Florida has been one of the biggest focal points, though closures span nine states as Darden exits a brand it no longer sees as strategic.
6. Starbucks
Starbucks is still pruning parts of its U.S. locations in 2026, particularly lower-performing urban and overlapping stores. While not all closures are tied to a bigger overhaul, the company remains focused on efficiency and traffic optimization.
These May closures are tied to redundancy, labor costs, or weaker foot traffic in dense trade areas. The company continues to favor higher-performing drive-thru and pickup-heavy stores over marginal legacy cafes.
7. Denny’s
Denny’s is also among the large chains reducing store counts in 2026, with underperforming restaurants continuing to leave the system. Traffic pressure in family dining is persistent, especially at older locations facing labor and commodity inflation.
The chain’s closures are concentrated in weaker legacy restaurants where remodeling costs and slower guest counts have made reinvestment less attractive. May could bring additional closures as franchise operators reassess slower markets.
8. MCL Restaurant & Bakery
MCL Restaurant & Bakery may be smaller than the national giants, but its recent closures stand out because of the chain’s long history and older customer base. The 76-year-old cafeteria brand has closed multiple locations after sales reportedly fell below sustainable levels.
Indiana and Ohio have been the primary focus, with closures already affecting Indianapolis, Terre Haute, Muncie, and Whitehall. For older diners who favored traditional cafeteria service, this one may feel especially noticeable.
9. Rodney Scott’s BBQ
Rodney Scott’s BBQ entered May with more closures planned than many larger chains. All locations are temporarily closed this month as legal and financial strain hit operator Pihakis Restaurant Group.
The affected restaurants include locations in Alabama, Georgia, Tennessee, and South Carolina. While framed as temporary, the abrupt nature of the shutdown has raised a lot of questions about the company’s stability and whether all units will return.
10. Chacho’s
Chacho’s is not as large as some national chains on this list, but its May closure still shows the same industry pressures. Its longtime Westheimer restaurant in Houston has shut down after reportedly losing its lease, another sign of how rent pressure is reshaping restaurant locations.
Lease costs have become one of the clearest reasons why otherwise viable restaurants disappear. In Chacho’s case, the brand remains active elsewhere, but one more longtime location has gone dark as operators favor stronger-performing sites.
Bottom line
Restaurant closures in May are not limited to one category. Burgers, pizza, coffee, casual dining, and even legacy cafeteria brands are all being forced to rethink store counts as costs rise and customers grow more selective in order to go out to eat more.
It is important to remember that many of these chains are not disappearing outright. Instead, they are shrinking toward stronger markets, newer formats, and more efficient stores. For diners, that likely means fewer familiar locations nearby, even when the brand itself survives.
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