In this article, we will cover the 12 worst performing fast food chains in America. If you want to skip our detailed analysis of the fast food and quick service restaurant industry, you can go straight to our 5 worst performing fast food chains in America.
Over the past few decades, fast food has become an important part of life in the United States. It is not surprising that the business of fast food and fast food restaurants is very competitive today. People are always looking for food that is inexpensive, attractive, full of taste and fast.
A number of fast food chains and quick service restaurants in America have become establishments over the years. With new competition, sometimes old players get kicked out. And sometimes new businesses don’t have what it takes to make it in the fast-paced and competitive fast food industry. In this article, we are going to take a look at the 12 fast food chains in the United States that have the highest number of restaurant location closings, but first let’s take a look at the fast food and quick service restaurant industry.
The fast food and quick service restaurant industry is worth $320 billion
Previously, the economic slowdown caused by COVID-19 has led to some of the The largest restaurant chains to file for bankruptcy in 2020. Online food delivery and ordering services have helped some of the largest fast food companies survive during the height of the COVID-19 pandemic. In one of our previous articles, The world’s 25 most valuable food companiesWe also briefly discussed how the food industry is currently facing challenges with regard to food safety concerns. However, we have mentioned that the ongoing global population growth continues to be one of the major drivers of growth in the food and restaurant industry.
according to Research and markets, the global fast food and quick service restaurants market was valued at USD 243.9 billion in 2022. The highly competitive market is expected to grow at a compound annual growth rate (CAGR) of 4.7% during 2023-2028, reaching USD 319.7 billion by 2022 The end of the expected period. The tendency of consumers, especially millennials, towards fast food and ready meals is one of the biggest factors that is expected to help the market to thrive in the coming years. The growing working population and their hectic schedules have greatly increased the population Fast food consumption in a number of countries around the world. The demand for fast food and quick service items is increasing and this remains one of the major factors creating a more positive outlook on the market. In addition, factors such as digitization and modernization of restaurant outlets, along with the use of digital point-of-sale terminals and touch screen kiosks are expected to drive the growth of the market.
Some of the food and restaurant stocks that are expected to become a popular option during this period include McDonald’s Corporation (NYSE:mcd), Chipotle Mexican Grill, Inc. (NYSE:CMG), and Starbucks Corporation (NASDAQ:sex).
While the global food and restaurant industry has been one of the sectors hardest hit by the COVID-19 crisis, signs of recovery continue to create a positive outlook for the market as some of the biggest names in the industry shift their focus towards growth. On March 6, Reuters mentioned Starbucks (NASDAQ:SBUX) will look to open up to 100 new outlets in the UK. The company is said to be on course to invest £30m in its UK operations to launch new locations as well as renovate more than 1,000 already existing outlets.
Regarding the market in China, here are some comments from Starbucks’ (NASDAQ:SBUX) second quarter 2023 earnings call:
“Moving to China. The second quarter marks an important turning point as we finally begin to emerge from 3 years of unprecedented COVID disruption, and embark on the journey of recovery that we envisioned. We saw a strong recovery in the second quarter, which strengthened the resilience of our partners, the strength of our brand and the close relationships we’ve built with our customers.
We saw a faster-than-expected recovery, finishing the quarter with revenue of approximately $800 million, up 3% from the prior year and up 11%, excluding the impact of foreign exchange translation of 8%. Corporate growth of 3% marked the first positive sign since the third quarter of fiscal 2021.
Importantly, we accelerated our store development in the quarter, opening 153 net new stores, more than double net new stores in the prior quarter. We now operate more than 6,200 stores across 244 cities, putting us on track to meet our goal of 9,000 stores by 2025. Our bold decision to continue opening new stores over the past three years, despite COVID disruptions and mobility restrictions, is paying off. Because it continues to achieve returns and profitability.
However, global inflation and rising food prices have caused problems for some of the major competitors in the fast food industry. Although it is one of the The largest fast food company in the worldSubway has had to close more than a thousand of its US locations in recent years. On May 1, Reuters published a statement condition Which claimed that the Subway restaurant chain decreased by 2.7% in the United States due to closing in 2022.
On the other hand, on July 24, Reuters to publish Restaurant chains such as McDonald’s Corporation (NYSE:MCD) and Chipotle Mexican Grill, Inc. (NYSE:CMG) reported strong earnings in the second half of this fiscal year as prices for commodities such as chicken and dairy products fell. The post also claims that data from Placer.ai showed that visits to McDonald’s Corporation (NYSE:MCD) increased 8.4% in the second quarter, while visits to Chipotle Mexican Grill, Inc. (NYSE:CMG) down 15.7%.
On July 27, McDonald’s Corporation (NYSE:MCD) reported strong earnings for the second quarter of 2023. The company reported earnings per share (EPS) of $3.17, beating EPS estimates by about $0.38. The company reported revenue of $6.5 billion and exceeded revenue estimates by $202.69 million.
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methodology
For this list, we ranked the 12 worst-performing fast food chain in America based on location closures and loss of restaurant locations since 2018. To find out how many fast food chain locations were in 2018, we used this binding By QSR Journal. To get the number of fast food chain locations in the United States in 2022, we used data available at Online restaurant business. We looked at the total number of locations for each fast food chain in 2018 as well as in 2022 in order to calculate lost units over a 4-year period.
In addition to the websites listed above, we also consulted listings and other data available online to review claims regarding the number of locations in the United States for each fast food chain in each of the two years in question. The 12 worst performing fast food chains in America based on losing restaurant locations in the country are listed below in ascending order.
12 worst performing fast food chains in America
12. Steak and Shake
Loss of locations in the US: 115
As a wholly owned subsidiary of Biglari Holdings Inc. (NYSE:BH), Steak ‘n Shake is a fast-service casual restaurant chain based in the United States. The fast food chain is known for pioneering the concept of premium steak burgers and handcrafted milkshakes.
Between 2018 and 2022, the Steak ‘n Shake chain lost as many as 115 locations in the United States. This brought the total number of sites in the country from 594 units in 2018 to just 479 units in 2022.
11. Aunt Anne
Loss of locations in the US: 116
Auntie Anne’s is an American franchise chain that is owned by a private company known as Focus Brands. The chain is known for its fresh pastries, but also offers other products such as pizza, dips, and drinks.
In 2018, the biscuit store chain had as many as 1,295 restaurants in the United States. Unfortunately, this figure for the number of sites lost 116 units and shrunk to just 1,179 sites by 2022.
10. Boston Market
Loss of locations in the US: 154
Formerly known as Boston Chicken, Boston Market is an American fast-casual chain that was recently acquired by Engage Brands LLC in 2020. Boston Market is known for home-style meals in a take-out format and offers a variety of items including chicken, pork, and rooster. Turkey and meat, in addition to a number of side dishes.
In 2018, the Boston Market restaurant chain had 454 locations in the United States. However, this once popular chicken restaurant chain lost as many as 154 units to reach 300 locations in 2022.
9. KFC
Loss of locations in the United States: 156
Kentucky Fried Chicken, or simply Kentucky Fried Chicken, is an American fast food restaurant chain that specializes in fried chicken. The restaurant chain is a subsidiary of Yum! Brands Inc (NYSE:Yum) and one of the largest fast food chains in the world.
Between 2018 and 2022, KFC lost as many as 156 units and its number of locations decreased from 4,074 in 2018 to 3,918 in 2022 in the United States. The popular fast food chain will be looking to remove some items from its menu with the aim of simplifying its menu this year.
Some other famous companies in the American food industry are McDonald’s Corporation (NYSE:MCD), Chipotle Mexican Grill, Inc. (NYSE: CMG), and Starbucks Corporation (NASDAQ: SBUX).
8. Hardee’s
Loss of locations in the US: 157
Operated by privately owned CKE Restaurants Holdings, Inc., Hardee’s is an American fast food restaurant chain specializing in burgers, fries, shakes and chicken sandwiches.
Between 2018 and 2022, the chain has lost as many as 157 US locations. The number of sites in the country decreased from 1,864 in 2018 to 1,707 in 2022.
7. Jimmy Jones
Loss of locations in the US: 166
Jimmy John’s, owned and franchised by Inspire Brands LLC, is a fast food restaurant chain based in the United States. With many different bagel options and sandwich flavors, Jimmy John’s has become one of the most popular fast food retailers in the country.
However, between 2018 and 2022 Jimmy John’s lost 166 restaurants across America, bringing the total number of its US locations from 2,803 in 2018 to 2,637 in 2022.
6. Papa Murphy
Loss of locations in the US: 269
Papa Murphy’s, as a subsidiary of Papa Murphy’s Holdings, Inc. (NASDAQ:FRSH), one of the largest chains of pizzerias located in the United States. Papa Murphy’s is best known for pioneering the take-and-bake pizza concept.
In 2018, there were 1,437 Papa Murphy’s locations in the United States. However, restaurant closings, especially since the COVID-19 pandemic, saw the number drop by 269 units to just 1,168 restaurant chain locations in 2022.
For investors looking to increase their exposure to the fast food industry, some stocks to look at include McDonald’s Corporation (NYSE:MCD), Chipotle Mexican Grill, Inc. (NYSE: CMG), and Starbucks Corporation (NASDAQ: SBUX).
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