It has been a brutal year for many restaurant chains. A combination of higher food costs, increased labor rates, and consumers being cautious about spending has led to a number of once-popular chains struggling.
Some have simply not recovered from the damage inflicted by the Covid pandemic which forced many chains to go to a takeout-only model. That worked for select restaurants that had invested in the digital technology needed for that period to thrive while others simply added to their debt.
Related: Another popular restaurant chain shares Chapter 11 bankruptcy plan
Red Lobster, for its part, was hurt by all of the above along with its own mistake in launching an unlimited shrimp promotion where it lost millions of dollars. That led to the chain filing Chapter 11 bankruptcy and closing nearly 50 stores.
The seafood chain is not alone in closing restaurants. Boston Market, while it has not formally filed for bankruptcy, has seen most of its locations close as it faces significant debt and court-ordered payments that its owners have not been able to meet.
It’s a situation that has led to speculation about many restaurant chains closing locations or even shutting down entirely. That has led to some pretty wild social media speculation, which is expected in that unregulated space, but sometimes rumors can crossover into the mainstream.
When that happens, real damage can be done, and, in one major case, the impacted restaurant has had to have its CEO speak out to push back on claims that his chain will be closing all its locations.
IHOP has been selectively closing restaurants.
Image source: Dine Brands
National burger chain pushes back on closing rumor
The challenge facing any restaurant chain that’s rumored to be struggling and closing locations is that there’s often some truth mixed into the misinformation. A relatively popular Instagram page recently shared a viral post that detailed which restaurant chains were closing certain locations or shutting down entirely.
The problem is that while parts of the post are true, others are not, or at least the company involved claims they aren’t. One claim in the post: “Buffalo Wild Wings is closing ALL Canada locations as well as 60 locations in the U.S.,” is, in fact true, while others are sort of true.
“Pizza Hut is planning to close 500 locations,” for example is sort of true as the chain is ending in-person dining at 500 locations, but will serve many of those markets with takeout and delivery-based locations.
The Instagram post also shared information on another national restaurant chain that the company’s CEO insists is not true.
“Fuddruckers is expected to close ALL locations by the end of the year,” the post claimed.
Fuddruckers pushes back on closure rumor
Fuddruckers has a lofty mission that it shares on its website.
“Some people are driven to create the world’s fastest cars or the world’s tallest buildings. Our calling is only slightly less glamorous but a whole lot tastier. We were born to create the World’s Greatest Hamburgers.”
That’s a bold claim and one that’s hard to refute or accept, but the chain’s CEO insists that the chain will not be closing.
“Our brand has been made aware of the misinformation stated by a non-credible blog. Our brand will not be closing all stores in 2024,” Fuddruckers CEO Nicholas M. Perkins told Denver’s 9 News. “Our dynamic group of franchisees continue to operate restaurants both nationally and internationally everyday. This year, we will be welcoming new franchisees into our system.”
Perkins also said that the burger chain, which currently has 55 restaurants, plans to expand and open new locations.
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The chain, which was founded in 1980, also shared a message on its Twitter page.
“A message from our CEO. #BiggerBolderBeefier #HereToStay,”
