From fan-favorite Chick-fil-A to fast-growing Wingstop, lots of America’s most iconic restaurant chains continued to thrive all through 2024. Several struggling chains, nonetheless, weren’t almost as lucky as they contended with lagging gross sales, declines in visitor site visitors, and retailer closures. Red Lobster and TGI Fridays have been among the many firms that struggled significantly laborious in 2024, with each shuttering dozens of areas and resorting to Chapter 11 chapter.
But if the previous has taught us something, declines in a sequence’s gross sales and recognition do not essentially imply that it is doomed. In truth, some struggling restaurant manufacturers have beforehand been in a position to mount profitable comebacks by bringing in new management, implementing sensible restoration methods, and making different tactical selections to enhance their fortunes in the long run.
This 12 months, a number of struggling chains have risen from the ashes and confirmed robust indicators of a resurgence because of a majority of these efforts. Read on for the ten restaurant chains which have made an enormous comeback in 2024.
Chi-Chi’s
Out of all of the comebacks the restaurant business has seen in 2024, few have garnered fairly as a lot consideration as Chi-Chi’s resurgence. In early December, the long-lasting Mexican chain introduced plans to start out opening areas once more in 2025—roughly 20 years after it disappeared.
A collection of possession adjustments, a Chapter 11 chapter submitting, and a lethal Hepatitis A outbreak linked to inexperienced onions in its salsa all led to the closures of Chi-Chi’s final remaining eating places in 2004. But Michael McDermott, son of Chi-Chi’s co-founder Marco McDermott, is reviving the model after inking an settlement that enables him to make use of the Chi-Chi’s title on bodily eating places.
Chi-Chi’s reopening announcement didn’t say precisely what number of areas it’ll construct and what it’ll serve. However, it did say that McDermott “is set to honor his household’s legacy by combining the traditional Chi-Chi’s restaurant expertise with trendy influences.”
Fuddruckers
A number of years in the past, Fuddruckers’s future appeared unsure after its dad or mum firm went out of enterprise and offered off the burger chain to one among its franchisees. But as of 2024, Fuddruckers just isn’t solely nonetheless round, however starting to open new areas once more.
Over the summer time, Fuddruckers introduced plans to open two new eating places in Silver Spring, Md., and the Chinatown neighborhood of Washington D.C. throughout the fall of 2024. (Both have but to open or be assigned precise opening dates, although the Chinatown location has since introduced that it’ll open in December 2024.)
This is a large step for Fuddruckers, because the chain’s footprint has dwindled to simply 44 areas within the United States and some others throughout Puerto Rico, Canada, and Mexico, in line with its web site. However, Fuddruckers nonetheless has an extended strategy to go if it desires to succeed in the 100+ restaurant whole it used to boast within the States.
The Ground Round
The Ground Round—recognized for its Bingo the Clown mascot, traditional American fare, and informal household environment—is lastly starting to increase once more after its unit rely dwindled to virtually nothing. This resurgence is because of Joseph Shea and his spouse, Nachi Shea, who bought the chain’s mental property rights and are growing a brand new Ground Round location in Shrewsbury, Mass. Construction is already underway, and the restaurant is anticipated to open in January 2025, Restaurant Business Magazine reported.
The Ground Round was based in 1969 and operated greater than 200 areas at its peak. However, it will definitely began shedding market share to widespread rivals like Chili’s and Applebee’s, resulting in vital closures and a Chapter 11 chapter submitting. The model was acquired out of chapter that very same 12 months, and its then-owners tried to revive it by attempting a number of spinoff restaurant ideas. The chain continued to shrink regardless of these efforts and presently includes simply 4 areas throughout North Dakota and Ohio.
Joseph Shea and his spouse are presently targeted on the upcoming Shrewsbury opening and have no extra eating places within the works but, however instructed Restaurant Business that they will be open to franchising sooner or later.
Grumpy’s Restaurant
After years of possession adjustments and uncertainty about its id, Grumpy’s Restaurant has efficiently rebounded and carved out a secure area for itself within the restaurant business. The regional southern-style diner chain began out in 1999 as a single Florida restaurant headed by an ex-U.S. Navy chef often known as “Chef Grumpy.” But Chef Grumpy stepped down as proprietor and operator after two years, setting off an extended interval of instability for the idea.
It modified palms six occasions and struggled to search out an id that labored, serving French-style delicacies one 12 months and specializing in dinner service the following. But that each one modified when Grumpy’s present house owners, husband and spouse Daniel and Morgan DeLeon, took over in 2017. They introduced Grumpy’s again to its roots by specializing in serving traditional diner fare at reasonably priced costs. They additionally launched a franchise program for Grumpy’s, resulting in 4 new restaurant openings throughout Northern Florida.
Over the summer time, Grumpy’s introduced that it desires to proceed increasing in Florida and Georgia and is searching for franchise companions in Orlando, Gainesville, Jacksonville, St. Augustine, and Savannah. It additionally set a aim to signal three extra growth offers by the top of 2024.
Sweet Tomatoes
Sweet Tomatoes clients by no means actually stopped grieving the salad buffet chain’s demise after it went out of enterprise throughout the COVID-19 pandemic. And in April 2024, followers lastly bought the information they’d been ready for since 2020.
A shuttered Sweet Tomatoes location in Tucson, Ariz., formally reopened its doorways on April 1 to loads of fanfare. Pictures posted on social media on the time confirmed lengthy strains of consumers ready to enter the restaurant, which is positioned at 6202 East Broadway Blvd.
The restaurant’s inside was revamped with new colours and a brand new look, however lots of Sweet Tomatoes’ traditional food and drinks choices are nonetheless obtainable to clients. The returning choices embrace Joan’s Broccoli Madness salad, hen noodle soup, Caesar salad, smooth serve, strawberry lemonade, and a salad bar crammed with fresh-cut components.
In nice information for Sweet Tomatoes followers exterior of Tucson, COO Mike Malone instructed Restaurant Business in February that the chain may increase to much more markets sooner or later.
Burger King
Burger King has confronted its justifiable share of challenges in recent times between lagging gross sales, franchisee bankruptcies, a whole lot of annual retailer closures, and the lack of its title as America’s second-largest burger chain to Wendy’s. However, the worst of those struggles might very effectively be behind Burger King now.
After shuttering near 300 eating places all through 2023 to get rid of underperforming shops from its system, Burger King is predicted to shut fewer eating places in 2024.
“We imagine most of those closures are behind us and anticipate a extra normalized stage of closure exercise in 2024,” Josh Kobza, CEO of Burger King dad or mum firm Restaurant Brands International, mentioned throughout a February earnings name.
The chain has additionally been working to revitalize its enterprise by a $400 million funding marketing campaign referred to as “Reclaim the Flame.” This sweeping initiative consists of modernizing the Burger King model, enhancing its kitchens, transforming a whole lot of eating places, growing revolutionary new menu objects, and ramping up promoting. Recent earnings knowledge signifies that these efforts are beginning to repay.
Burger King’s same-store gross sales elevated 3.8% within the first quarter of 2024, whereas system-wide gross sales elevated by 2.6%. Kobza mentioned throughout an April earnings name that the funding marketing campaign “is driving robust early outcomes and positioning us effectively to outperform in any client surroundings.”
Friendly’s
Friendly’s footprint—like Burger King’s—has shrunk considerably in recent times amid plummeting gross sales and a number of bankruptcies. The household eating chain presently operates round 100 eating places all through the East Coast, a far cry from the five hundred areas it as soon as boasted in its heyday, in line with Restaurant Business. It shuttered about six areas in 2023 alone amid an 8.1% decline in systemwide gross sales.
However, the spate of in depth Friendly’s closures might lastly be coming to an finish. Sherif Mityas, CEO of Friendly’s dad or mum firm Brix Holdings, just lately instructed Restaurant Business that the model solely expects to shutter round three extra shops as a result of leases not being renewed or the eating places themselves now not being possible. Friendly’s has additionally began to open areas once more with the latest debut of a retailer in Orlando, Fla.—and it expects to open three to 5 extra items subsequent 12 months amid its comeback.
Corner Bakery
Corner Bakery’s future appeared unsure when it filed for Chapter 11 chapter safety in February 2023, a transfer meant to maintain it in enterprise whereas it reorganized tens of thousands and thousands of {dollars} in debt. A bit over a 12 months later, issues are beginning to lookup for the bakery-café chain.
The restaurant and actual property operator SSCP Management purchased Corner Bakery out of chapter just some months after the submitting final 12 months. The firm started revamping the Corner Bakery enterprise quickly after by bringing in a brand new group of executives to run the corporate, enhancing worker coaching applications, and enlisting the advertising and marketing company Champion to assist promote the model, amongst different initiatives.
These comeback efforts have already begun to repay. In a February 2024 replace, Corner Bakery introduced that common unit volumes (the gross sales every particular person retailer sees on common) had elevated by $200,000 within the earlier six months. Looking forward, the corporate plans to transform most of its company-owned areas to enhance the eating expertise and open 5 to seven new eating places in 2024.
“Our plan from Day One was to speculate again into the enterprise in nearly each space, from growing and offering progress alternatives to our individuals to making sure that our cafes are refreshed and welcoming to our visitors,” SSCP President and Corner Bakery Cafe CEO Chris Dharod mentioned in a February assertion. “We see a lot potential for the Corner Bakery Cafe model, and we’re thrilled that our efforts are already paying dividends and have laid a powerful basis for progress within the 12 months forward.”
Steak and Ale
Roughly 16 years after Steak and Ale filed for chapter and closed all areas amid declining recognition, the once-beloved steakhouse chain made a serious comeback and opened a brand new location.
News initially emerged in early 2023 that dad or mum firm Legendary Restaurant Brands deliberate to revive the Steak and Ale model, which was finest recognized for its steaks, salad bar, beer, wine, and Tudor-style decor. Finally, this previous July, a brand-new Steak & Ale restaurant opened its doorways inside a Wyndham resort in Burnsville, Minn.
The new location serves a number of modern and regional choices, in addition to all of the outdated fan favorites: table-side Caesar salad, the Kensington Club, Hawaiian Chicken, Oh Baby Back Ribs, and the 20-ounce “Norman Cut” Herb Roasted Prime Rib. The franchisee working the Burnsville restaurant additionally has a 15-unit settlement within the Midwest with unique rights to increase Steak and Ale and its sister manufacturers (Bennigan’s and Bennigan’s On The Fly) in Kansas, Missouri, Nebraska, North Dakota, Oklahoma, and South Dakota. So, followers in these markets ought to hold an eye fixed out for much more potential restaurant openings sooner or later.
Clover Food Lab
The Massachusetts eating scene took a serious blow final fall when the Boston-based Clover Food Lab declared Chapter 11 chapter as a result of lagging gross sales and inadequate financing. But, as of spring 2024, Clover’s chapter days are formally behind it.
The chain—recognized for serving veggie-forward meals made with seasonal components—exited chapter this previous April and is already planning to start out rising once more. Clover was left with 13 areas after closing two eating places throughout the chapter course of. But, within the subsequent 5 years, it hopes to increase to 60 eating places all through New England, Restaurant Business reported.
Clover will give attention to increasing in city areas and college areas. It’s additionally planning to open extra smaller-format shops because it grows.
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