CA Chain Restaurant Closures: Major Eateries Shutter In 2019-2020

LOS ANGELES, CA — The new decade has dawned, and with the changing times, come changing tastes. Several dining trends driven largely by millennials are pushing out the old standbys that have long dotted the suburban landscape in California.

Several major chains announced closures in 2019 that continue into 2020. Some such as IHOP are known for appealing to the older crowds, and others struggled to meet the growing appetite for healthy fare. Notably, most are chains known for their mid-ranged pricing.

Major chain restaurants that have announced closures and revamping include:

IHOP

First IHOP tried expanding its reach with a marketing stunt announcing it would change names from the International House of Pancakes to the International House of Burgers (it didn’t really — it was just a stunt), but customers appear to be hungry for more than a name change.
As first reported by Business Insider, sales were lagging going into 2019 when the company had plans to close 30-40 stores.

Outback Steakhouse

A part of the Bloomin’ Brands company, the Outback Steakhouse has also suffered from reduced foot traffic in recent years, triggering several closures in places such as in Thousand Oaks this year. Across the company, nearly 50 restaurants were reportedly slated for closure in 2019.

SEE ALSO: California Chain Retail Stores Close In 2019-2020

McCormick & Schmick

The upscale seafood restaurant McCormick & Schmick has been struggling nationwide, shuttering nearly a third of its locations in recent years. In 2019, the trend continued with closures in locations such as Irvine in Orange County. Going into 2020, there are only five California locations left in Anaheim, Roseville, San Diego, San Francisco and San Jose.

Subway

Subway, home of the $5 footlong, cancelled the $5 footlong in 2019 and shut down more than 1,000 locations since 2018. It’s the world’s largest fast food chain, so it can shed thousands of restaurants and still be fairly ubiquitous. The chain plans to relocate and remodel many of its shops this year to stay competitive as more and more health-conscious restaurants glut the market.

"Our main goals are to drive guest traffic and grow franchise owner profits. Everything we do has to achieve these goals," a Subway spokesperson said in a statement to CNN.

Applebee's

Since 2017, The Glendale-based Applebee's announced the closure of more than 160 locations. A Dine Brands Global, Inc. sister company to IHOP, Applebee's has also had a rough few years. The happy-hour favorite has seen diminishing foot traffic. The chain has been open about its struggle to gain a foothold with millenials, but company officials are hoping a series of changes can turn the tide.

"Over the past few years, the brand's set out to reposition or reinvent Applebee's as a modern bar and grill in overt pursuit of a more youthful and affluent demographic with a more independent or even sophisticated dining mindset, including a clear pendulum swing towards millennials," John Cywinski, Applebee's brand president, said in a call with investors last year, reported Business Insider.

Pizza Hut

In 2019, Pizza Hut announced plans to close roughly 450 locations by the end of 2020 while completing the switch from dine-in to carry out only locations.

Red Robin Gourmet Burgers

In May, Red Robin Gourmet Burgers announced the closure of 10 locations, including seven in mall locations, according to Restaurant Business. As American malls struggle, so does the go-to restaurant of American malls.