The restaurant industry is facing significant challenges, as recent data from the National Restaurant Association reveals a decline in sales and customer traffic. In November 2025, 44% of restaurant operators reported lower same-store sales, a noticeable increase from 35% in October. Additionally, only 47% of operators reported higher sales in November, compared to 48% in October. Customer traffic has also dropped, with 51% of operators indicating a decrease in November, up from 48% in the previous month.
Several restaurant chains are feeling the impact of these trends, leading some to take drastic measures. Notably, breakfast chain Taste of Belgium has had to close eight of its eleven locations in Kentucky and Ohio and filed for Chapter 11 bankruptcy on January 6, 2025. Currently, the chain operates just three locations in Cincinnati.
Similarly, DBJ US Corp., a Denny’s franchisee located in Miami Beach, filed for Chapter 11 bankruptcy protection on January 27, 2025, in an effort to restructure its financial obligations. This franchisee, which operates seven Denny’s locations, did not divulge specific reasons for the filing but was actively hiring staff just days prior. Denny’s Corporation itself is also scaling back, having announced the closure of over 150 restaurants nationwide in 2024 and planning to close another 70 to 90 in 2025.
In a related development, Denny’s announced on November 3, 2025, its transition to a private company after selling its assets for approximately $620 million, concluding a deal that marked a 52% premium over its stock price on that date.
Why this story matters:
- The decline in restaurant sales and traffic reflects broader economic challenges faced by the industry.
Key takeaway:
- Bankruptcy filings by prominent chains illustrate the financial distress impacting the restaurant sector.
Opposing viewpoint:
- While some chains are struggling, others may find opportunities in adapting to new consumer behaviors and preferences.
