The struggling fast-food chain is closing dozens of locations

Restaurant chains have faced financial difficulties this year related to several factors, such as rising food prices caused by inflation, rising interest rates and changes in consumer spending habits.

The harsh economic impact on restaurants has caused many to close and sometimes file for bankruptcy.

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Related: Bankrupt pizza chain operator unloads dozens of restaurants

Struggling Pizza Hut, operator of EYM Pizza, which operates franchise locations in Illinois, Indiana, Ohio, Texas and Wisconsin, filed for Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Texas on July 22 and hired brokerage National Franchise Sales to sell its 127 restaurants through its bankruptcy case.

The Irving, Texas-based pizza franchisee has been sued by Yum Brands. (YUM) Pizza Hut, after it stopped paying royalties when a forbearance period with its parent company ended.

Popular Sonoma, Calif.-based Mary’s Pizza Shack filed for Chapter 7 protection Sept. 10 in the U.S. Bankruptcy Court for the Northern District of California as part of a restructuring that will transform the business from a single corporation in a smaller family. units.

Mary’s Pizza Shack began its corporate restructuring in the fall of 2022, resulting in the company closing five restaurants, though it will reopen one location after eight months and continue to operate 10 locations in Northern California.

BurgerFi International (BFI) owner and franchisor of 144 burger and pizza restaurants across the country, on Sept. 11 filed for Chapter 11 bankruptcy protection after a turnaround plan it implemented less than a year ago failed to succeeded in producing the results necessary to prevent the declaration.

Related: Struggling retailer closes more stores in Chapter 11 bankruptcy

The Fort Lauderdale, Fla.-based chain closed 19 underperforming corporate-owned locations and cut related operating costs as part of its turnaround plan.

Dickey’s BBQ Restaurants

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Dickey’s is closing 85 locations in fiscal 2024

Finally, fast-casual restaurant chain Dickey’s Barbecue Restaurants has closed locations nationwide since peaking at 562 franchise locations in 2017, closing a network of 205 locations since the start of fiscal 2018. With however, the company has not filed for bankruptcy or indicated that it has any such plans.

Except for 2021, when the company reported nine net openings to increase its franchise total from 463 to 472 units, its net franchise total has declined each year, according to its franchise disclosure document reported by QSR.

Dickey’s, in the fiscal year ending May 31, 2024, reported the largest drop in franchise restaurant units since its peak, with 85 net closings, down from 442 in 2023 to 357 in 2024. The company opened 12 franchised restaurants , but also closed 97.

More restaurant stories:

• Famous Asian restaurant chain files for Chapter 11 bankruptcy
• Popular owner of fast food chain files for Chapter 11 bankruptcy
• Popular pizza chain ads for Chapter 7 bankruptcy

The company’s franchise total also fell by 23 units, from 465 in 2022 to 442 in 2023.

In addition to its 357 franchise locations, Dickey’s has nine corporate-owned locations in Texas and Oklahoma, plus 19 international locations for a total of 385 restaurants.

The company had 19 franchise agreements signed but not open as of May 31. They reportedly expect to open four franchises in 2025.

Established in 1941, the Dallas barbecue chain’s menu includes slow-smoked beef brisket, pulled pork, St. Louis, Polish sausage, spicy cheddar sausage, smoked turkey and marinated chicken. Its homestyle favorites include baked beans, loaded baked potato casserole, fried okra, green beans with bacon, French fries, mac and cheese, coleslaw and potato salad.

Also offers brisket, pulled pork, turkey, chicken breast, sausage, and smoked meat and cheese sandwiches.

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