9 Restaurant Chains That Are Struggling in 2024


Starbucks' early 2024 performance was "disappointing," according to CEO Laxman Narasimhan. worldwide same-store sales fell 4% and worldwide transactions fell 6% for the coffee company, an unusual reduction in consumer traffic and purchases.


KFC reported an 8% growth in same-store sales in China in the first quarter of 2024. But the chicken chain's American outlets struggled.


McDonald's does not had substantial sales drops like other chains on this list. The burger chain is losing lower-income consumers.

Cracker Barrel

Customer traffic has plagued this southern country-themed restaurant franchise. In Cracker Barrel's second-quarter earnings call, CFO Craig Pommells reported a 4% drop in customer traffic.

Red Lobster

America's most renowned seafood company may go bankrupt this year. Bloomberg, citing unidentified sources, said in mid-April that Red Lobster may file for Chapter 11 bankruptcy due to high food and labor expenses and operational deficits.

Boston Market

The fast-casual restaurant famed for its rotisserie chicken and other comfort foods has faced huge store closures, litigation, and other financial troubles in recent years.


In particular, a Denny's required $1 million to break even and run. In February's fourth-quarter results call, Denny's CFO Robert Verostek said it needed $1.2 million.


Since 2017, Applebee's closed 300 locations. Recently, Dine Brands Global closed 36 Applebee's restaurants in 2023. The closures "aren't a sign of struggling franchisees," but "a sign of struggling trade areas."

Noodles & Company

Noodle-focused fast-casual restaurant company reported a dip in performance during its fourth-quarter results call in March. In Q4, company-owned retail traffic dropped 9%, overall revenue fell 8.9%.