56-year-old beloved fast-food chain closes over 700 locations

The chain restaurant sector has faced numerous economic challenges in recent years, resulting in the closure of many locations and bankruptcy filings. One such example is Long John Silver’s, a fast-food chain that has downsized its operations since the Great Recession in 2008.

The rise in inflation, particularly since the onset of the Covid-19 pandemic in 2020, has led to increased labor and food costs. As a result, menu prices have also significantly increased, deterring customers from dining out. According to the Bureau of Labor Statistics, labor and food costs have increased by 35% from 2019 to 2025, with menu prices rising by an average of 31% during the same period, as reported by the National Restaurant Association.

This surge in costs has contributed to slower sales in the restaurant industry, reaching their lowest growth rate since the Great Recession of 2008. Joe Pawlak, managing principal at Technomic, stated that it was a challenging year for the Top 500 chain restaurants in terms of sales.

Long John Silver’s, a well-known fast-food dining chain, has closed over 700 restaurant locations nationwide since the Great Recession in 2008. The seafood restaurant chain, which was established in 1969, had 1,081 locations at its peak in 2007 but began closing locations in 2008 due to financial difficulties.

During the financial crisis, several restaurant chains, including Starbucks and Bennigan’s, faced closures and bankruptcy filings. Long John Silver’s continued to close more locations in the following years, with a significant number of closures in 2014, bringing the total number of units to 815.

Over the next decade, Long John Silver’s closed an additional 330 locations, ending 2024 with 485 restaurants. The chain closed another 110 units in the last year and a half, leaving a total of 375 stores at the time of writing.

Some franchisees of Long John Silver’s, such as Uplifted Foods LLC, have faced financial difficulties and have had to file for Chapter 7 bankruptcy liquidation. Other restaurant chains, such as Pizza Hut and Papa John’s, have also announced plans to close underperforming locations in response to economic challenges.

In conclusion, the chain restaurant sector has been significantly impacted by rising costs and economic challenges, leading to closures and bankruptcy filings. Long John Silver’s and other chains continue to navigate these difficult times as they adapt to changing market conditions.