11 Chain Restaurants To Avoid In 2026

Chain restaurants have always been a comforting kind of touchstone in the world of dining out. You know exactly what you're getting, you know the general price point, and you don't have to overthink it. You probably even have your standard go-to menu item on lock. But as we head into a new year, that comfort level is starting to crumble — and it's not because customers suddenly stopped liking their favorite burgers, wings, or endless breadsticks. It's because companies are starting to show cracks.

Many major chains are struggling financially in ways that impact customers, even if it's not obvious at first. Rising food costs, higher labor expenses, shrinking profit margins, heavy debt, declining foot traffic, and aggressive cost-cutting have all put pressure on once-stable brands. And when restaurants start cutting corners to stay afloat, the quality, portion sizes, service, and more often take a hit.

You may have already noticed some warning signs. Big restaurant chain menus have gotten smaller, prices are going up, locations are closing, and the food just doesn't taste or look as good as it used to. We aren't here to shame anyone for grabbing a quick meal, but we did feel it was important to pull the curtain back, to shine a spotlight on which restaurants are riding the struggle bus, and which red flags to watch for. So, before you spend your money, check out why these 11 chains may be worth skipping in 2026 — at least while things shake out.

Throughout the years, Wendy's has consistently been a beacon of reliability in our fast food Rolodex. We've grown fond of those iconic square burgers, dependable value menu offerings, and the sense that the chain was just a step above the rest — especially when it had a full salad bar that felt a little fancy for fast food. But Wendy's is wobbling a bit, and customers are likely to feel it.

The chain has announced plans to close up to 350 U.S. locations after already shuttering about 140 stores in 2024. As for why Wendy's is closing hundreds of locations, it seems that sales at existing restaurants are slipping, and overall profits have taken a noticeable hit. For diners, the impact of this shuttering shows up in subtle ways. Stores that remain open may feel more rushed or understaffed as operators try to cut costs. Long waits, stressed employees, and inconsistencies in food quality are also common side effects when chains are under pressure.

In an effort to bring people back, Wendy's has leaned hard into low-priced meal bundles. While these deals can be attractive, they're also a sign that the company is fighting to hold onto its price-sensitive diners in a saturated market. Franchise owners are facing higher labor and food costs at the same time, which adds another pressure point. While Wendy's isn't disappearing any day soon, in 2026, it's important to note that it may be operating in survival mode rather than comfort-mode.

Denny's has earned a loyal following thanks in great part to its familiarity. Whether late at night, early in the morning, or when you're craving breakfast at any hour, Denny's is among the places you can rely on when you want something predictable (translation: comforting and familiar) in a casual, sit-down environment. But, at the time of this writing, the chain is navigating major changes that could affect that experience.

By the end of 2025, Denny's had closed about 150 underperforming restaurants. Those shutterings alone signal trouble, but the bigger shift came shortly thereafter, when the company agreed to a roughly $620 million sale to a private equity ownership group. (The deal is expected to close in early 2026.) How might Denny's going private impact customers? Well, when a restaurant chain goes private under new investors, the focus often sharply turns toward increased efficiency, cost control, and reshaping the company footprint.

For customers, transitions like this can bring noticeable shifts. We can expect things like menu changes, staffing adjustments, reduced hours, or even slower service as new owners sort things out, and evaluate what should stay or go. Even if favorite locations remain open, fans should know that the atmosphere may feel different as operational screws are tightened. Don't get us wrong, Denny's still has brand recognition, and loyal fans, but 2026 looks more like a year of restructuring than reliability. For diners who value consistency, it may be worth watching from the sidelines until the dust settles.

Ever wonder what happened to TGI Fridays?  After all, it was among the OG sit-down chains that defined casual dining. Who doesn't have fond memories of its big booths, loud energy, loaded appetizers, and upbeat happy hour? Well, we hate to break it to you, but the version of the brand heading into 2026 is very different from what you may remember. The chain filed for Chapter 11 bankruptcy in late 2024, and continues to operate under that protection in 2026. And while bankruptcy doesn't automatically mean a shutdown, it does mean the company is in survival mode, straining to stay alive by reorganizing its finances, closing locations, and cutting costs.

TGI Fridays has already closed dozens of restaurants in the U.S. and internationally, with more instability reported in overseas markets. To be fair, the brand has tried to adapt, but years of declining traffic, and shifting dining habits, have definitely taken a toll. Even leadership has acknowledged that the pandemic created damage the company has never fully recovered from. While restructuring aims to keep the brand alive, there's still much uncertainty about how many locations will remain — and what the customer experience will look like long-term.

In light of all of this, in 2026, TGI Fridays feels like a gamble. Some restaurants may seem fine, while customers might sense others are noticeably under strain. Until the restructuring proves successful, consistency — that one thing that casual dining depends on, and that customers crave — remains a big question mark.

When Panera Bread first entered the scene, it seemed to hit the ideal sweet spot: The sit-down eatery was nicer than fast food, but it did not break the bank like more upscale dining, or feel half as fussy. Sure, the pricing was a bit higher than what you'd expect to pay for an on-the-go hamburger, but the popularity of the brand proved that customers felt the quality and experience were worth it. However, now, that sweet spot feels like it's starting to sour a bit, and customers are beginning to question what they're paying for. 

The downfall of Panera Bread stems largely from what industry watchers describe as a trust problem. One pretty seismic shift came when the company shut down its fresh-dough facilities, laying off hundreds of workers, and changing how its previously familiar food is prepared. Instead of dough being locally made from scratch, items are now shipped, then finished in-store. While Panera claimed this improves consistency, many longtime customers strongly disagree. Unsurprisingly, amid all the shakeups, sales have slipped, leaving Panera struggling to stand out like it once so easily did.

Franchise instability adds another layer of concern, with at least one major operator having filed for bankruptcy, citing significant debts, and tax liabilities, which resulted in store closures. For customers, this kind of behind-the-scenes turmoil can show up as inconsistent service, reduced staffing, or sudden location shutdowns. So, while Panera Bread may not buckle tomorrow, it's clearly shaking in its boots a bit.

A proverbial jack of all trades, Jack in the Box has earned a reputation for cooking up a little bit of everything for customers. Its varied menu spans everything from burgers to tacos, to breakfast items, and late-night noshes. But, going into 2026, the chain is dealing with a shrinking footprint, and fewer customers walking through its door.

The company has been steadily closing restaurants as part of a plan to eliminate underperforming locations. By the end of 2025, dozens of stores had already closed, with more scheduled to shut down the following year. Altogether, the company previously signaled that up to 200 locations could disappear. That's not a sign of fine-tuning, fam. That's a sign of a brand trying to stop the bleeding. Customer traffic has been falling, while menu prices continue to rise. Fewer visits mean less revenue, and even price hikes haven't fully made up the difference. Add to that rising beef costs, and heavy debt, and the leadership felt forced to sell off parts of the business, including its ownership stake in Del Taco. 

For customers, this can result in an unreliable experience, with some locations running the risk of feeling neglected as resources are pulled back. Other branches may be short-staffed or operating with reduced hours. And while Jack in the Box is indeed still opening a small smattering of new locales, the overall trend is contraction versus growth. And that uncertainty makes consistency — a foundational fast-food expectation — difficult to guarantee.

How is Hooters still open? It's a valid question. In fact, one might say that Hooters' entrance into 2026 sounds more like a holler for help than a hearty hoot. The chain filed for Chapter 11 bankruptcy protection, and now seems far more focused on re-organizing its finances than nurturing  — much less improving — the customer experience. 

As part of the bankruptcy process, Hooters plans to sell all of its company-owned restaurants to franchise groups, while continuing to evaluate which of its locations should remain open. That kind of financial restructuring usually means diners get caught in the crossfires of caution spending. We're talking maintenance upgrades, staffing investments, and menu innovation that often pulls focus, forcing customer care aside as leadership works to stabilize debt. Hooters has already closed dozens of locations, blaming rising food and labor costs for the boarded doors. At the same time, the brand has dealt with lawsuits, and public criticism, adding pressure during an already difficult period. While executives assure the public that its operations will continue as usual, bankruptcy is nothing to sniff at, so that promise feels flimsy.

The company has voiced a desire to return to its roots, and become more family-friendly moving forward. That may eventually help the brand find a clearer direction amid its present flailing, but transitions like this are rarely smooth. So, in 2026, while Hooters focuses less on growth, and more on staying afloat, that predictable dining experience that customers crave may not be on the menu.

Noodles & Company built a solid brand by offering its customers a wide variety of noodle-based comfort foods, from classic mac and cheese to more innovative pasta bowls, and international dishes. Lately, though, the pasta-inspired chain has been struggling to convince customers it still brings strong value to the table. Company bigwigs have scrambled to regroup, using their noodles to try to come up with a plan to rally. The result? The company announced plans to close locations through 2026, after already shutting down dozens of underperforming stores.

While some revenue gains have come from raising menu prices, customer traffic has undeniably declined. In layman's terms, this means higher prices may be helping the books short-term, but customers are still turning away. The uncertainty only mounts as leadership changes, and a possible sale of the company, come into play. The board has openly explored refinancing or selling part or all of the business, and when a restaurant chain starts to explore these options, it's usually because the current model is kaput. 

Noodles has attempted menu changes, introducing smaller, combo-style offerings that appeal to budget-conscious diners. But while some of those efforts helped briefly, they do not seem to have been enough. The company has also faced warnings tied to its declining stock price, only adding financial pressure to the already intense squeeze. For diners, all of this screams inconsistency as menus are in flux, locations are closing, and the overall brand identity feels lost in the shuffle.

Outback Steakhouse has long been loved for being a tried-and-true, sit-down chain that offers the best of a classic steakhouse experience, without the budget-busting steakhouse prices. But, as 2026 grinds into gear, some things are beginning to bust. The warning signs are all there, with parent company Bloomin' Brands confirming that it will close more than 40 Outback locations. Meanwhile, dozens more leases not being renewed as they are set to expire. 

What does this mean in plain English, you ask? Basically, instead of investing in its aging restaurants, the company is pulling back — or sounding the retreat, if you will. And that move matters more than most might realize, because when a brand chooses not to reinvest, its remaining locations often feel an impact. Tighter budgets, fewer upgrades, leaner staffing, and slower service are just a few of the dreaded potential fallouts. Bloomin' has already closed 21 locations across its portfolio, while also admitting that more closures are on the way. 

While, yes, the company has indeed announced a $75 million effort to stabilize operations, it must be noted that this money will be spread across multiple struggling brands, not just set aside to save — much less improve the customer experience at — Outback. To put it bluntly, until Bloomin' proves that it's reinvesting, and not retreating, Outback may be a chain worth skipping, at least until it's back in full bloom.

Chipotle skyrocketed to success thanks to its commitment to proving that you can have fast food without compromising freshness, affordability, or even ethics. And that was awesome for a while, but in 2026, Chipotle's earlier promise is feeling a little tarnished. A fading customer following reflects a general displeasure among once-loyal fans, and traffic in major markets has fallen 12%. This is not surprising, given that the average visit now costs $14 or more, a price point that puts Chipotle well above inflation. These prices have shot the brand into a stratosphere many household budgets simply can't reach.

Price hikes are only part of the problem, as research shows a drastic decrease in younger customers earning under $100,000. Families are also flocking to other, more affordable options, where a basic dinner for four won't require mortgaging the house. To be fair, there are costs behind the scenes that are exploding, from avocado prices to wages, and even escalating supply-chain expenses. Suffice it to say, Chipotle is feeling the squeeze, and profit margins are getting mushed. This is reflected in the closure of 75 locations in 2025, a surprising (and sad) move for a brand once considered recession-proof. Meanwhile, the company's stock is dropping like it's hot — or not, rather.

What does it all mean? Well, Chipotle isn't collapsing, but it is wobbling. And while the food's as tasty as ever, it's no longer the budget-friendly option it once was. Price-conscious customers may want to wait out the wobble.

Boston Market's situation might just be the most concerning of the bunch. Once a shining star among of the fastest-growing restaurant chains in the nation, this rotisserie chicken joint ruled the roost for a number of years. But, as of 2026, things have downhill — and fast. We're talking shrinking from 300 bustling locales to now only hovering at a mere two dozen. We're talking unpaid bills, and unpaid employees. We're talking lawsuits, and government seizures. Like, what the cluck, Boston Market?

First, Boston Market's corporate headquarters was seized by authorities over unpaid taxes. Understandably, vendors stopped delivering food when invoices went unpaid — but wait, there's more. The company's been sued more than 150 times by various creditors since 2020. Rumors swirl about landlords padlocking doors, and utilities being shut off. Financially, meanwhile, the numbers are eye-popping. Creditors are said to be chasing nearly $17 million in judgments, while company bank accounts contain a mere sliver of that staggering sum. And through all this messiness, the company has somehow managed to avoid a formal bankruptcy filing — a miracle that is anything but for creditors fighting to untangle a web of LLCs that leaves them fighting over scraps.

For diners, the shrapnel from this explosive (or perhaps implosive) situation shows up in inconsistent menus, understaffed restaurants, declining food quality, and sudden closures. Apparently, even if a lone Boston Market near you happens to still open, there's no guarantee that it will be tomorrow — like, zilch.

A few years ago, if you'd have asked anyone, they would have likely balked at the idea of Starbucks being less than bulletproof. And if you'd have predicted that the coffee juggernaut would be downsizing in 2026, they would have accused you of pulling their legs. But while the news might be hard to swallow, it's true: That's exactly what's going down.

Starbucks is currently undergoing a $1 billion restructuring that includes closing roughly 400 North American locations, and laying off hundreds of corporate employees. While the coffee giant still has tens of thousands of stores worldwide, this pivot feels like smoke — and you know what they say about where there's smoke. The reasons for this proverbial fire are layered. Consumer habits have changed, and many businesses have not fully recovered previously healthy numbers post-pandemic. Inflation fatigue has also hit Starby's hard, with more than 70% of surveyed customers saying that rising prices are the reason they are rethinking their daily cup of Joe from the Seattle chain.

Competition has also ramped up, with independent cafes, drive-thru chains (we see you, Dutch Bros), and newer concepts stealing diehard Starbucks sippers left and right. New CEO Brian Niccol is attempting a cultural reset, bringing back handwritten cups, streamlining the menu, and renovating stores in the hope they'll become third places. But these changes take time, and money, and we're not sure that customers — whose patience is already stretched pretty thin — are willing to stick around to navigate the growing pains.

This list is a result of digging into recent business news and financial coverage to see which chain restaurants are under real pressure entering into 2026. Most of the information came from reports on declining sales, store closures, mounting debt, and leadership shakeups. We also reviewed public records, like bankruptcy filings and restructuring announcements. If a chain showed up repeatedly in credible business publications as struggling or pulling back, it earned a spot here.