Fast-food chains are staples of convenience and comfort, but not all are thriving in today’s competitive market. From changing consumer habits to economic pressures, some beloved names are fighting to keep their doors open. Let’s explore several fast-food chains that are struggling, the challenges facing five iconic fast-food brands, and what this might mean for their future.
1. Subway: Shrinking Locations Worldwide
Subway was a sandwich powerhouse. Not only was it a favorite of mine, but it also attracted the whole world’s attention at one point. Today, the brand is seeing store closures due to franchise dissatisfaction and declining sales. The shift toward healthier, locally sourced options has left it struggling to keep up with modern demands. On top of the shifts in the supply chain, the cost of a sandwich without a coupon makes it high costs for some consumers. This has ultimately led to the brand closing more than 7,000 stores since 2015.
2. Pizza Hut: Delivery Giants Dominate the Market
When I was a kid, my family thrived off a Friday night Pizza Hut family meal. You’ll hardly find any cars parked outside their doors if you find a standalone Pizza Hut now. Its decline comes from increased competition from delivery-focused brands like Domino’s which have taken a slice out of Pizza Hut’s profits. With dine-in services losing popularity, its large-format locations are becoming a liability. On top of that, the brand has been facing some legal issues with a franchisee. This led to them closing 15 stores in June of 2024 and there are another 120 locations at risk in the Midwest.
3. Checkers and Rally’s: Battling Rising Costs
Checkers is facing challenges due to rising ingredient and labor costs, which is impacting its profitability. Despite being known for its affordable menu options like burgers and innovative desserts, as well as its popular wings, the chain is struggling to maintain its appeal as prices go up. The increasing costs are making it difficult for Checkers to keep up with demand and sustain its budget-friendly offerings. Checkers reached a deal with lenders in 2023 to reduce its debt and avoid bankruptcy. However, there’s no telling how long they’ll continue to be able to stay in business.
4. Jack in the Box: Limited Growth in a Crowded Field
Jack in the Box is a regional brand. I’ve come across them in states like Alabama and Texas. While I thoroughly enjoy the mini tacos and their new breaded wings, they are not without their problems. The brand’s regional focus has hindered its ability to compete with larger, nationwide fast-food chains. Its lack of innovation also puts it at risk of being overshadowed in the fast food market. That said, the fast food chain is doing what it can to stay alive. While some stores have closed, Jack in the Box is opening new locations across the U.S. and in Mexico.
5. Steak ‘n Shake: Bankruptcy Threats Loom
Steak ‘n Shake is diner-quality food at half the price. Their best offerings are at happy hour where you can get all their shakes half-priced. It’s such a steal. However, this retro-inspired chain has suffered from operational inefficiencies and declining customer satisfaction. Even revamped efforts to modernize have yet to bring significant recovery. Another thing that had a huge impact on Steak ‘n Shake was the COVID-19 pandemic. Fifty-seven Steak ‘n Shake locations were permanently closed due to the pandemic, and the numbers are continuing to fall, decreasing from 610 locations in 2019 to 457 in 2023.
Innovation is Necessary to Thrive in 2024 and Beyond
These fast-food chains are struggling for a number of reasons. At the same time, they also serve as cautionary tales for the food industry. Consumer preferences, innovation, and efficient business models are vital to survival. Whether these brands can turn things around remains to be seen, but their struggles highlight the importance of adapting to change.