McDonald’s is preparing to close another restaurant within days, adding to a growing trend among major fast-food chains that have been rapidly shrinking their footprints in recent months.
Rising costs, evolving consumer habits, and increased competition are putting pressure on beloved brands that were once considered permanent fixtures of American culture.
However, it is more than meets the eye for the unexpected shutdown, there is conflict among employees.
McDonald’s ( MCD ) confirmed to TheStreet via email that it will permanently close its restaurant at 900 West Avenue in Ocean City, New Jersey on December 14, 2025.
“After 47 years of serving the Ocean City community, the 900 W Ave. restaurant is closing. I am deeply grateful to our loyal customers and our hardworking team members who show up every day with dedication to serving our community,” McDonald’s owner/operator Pat Powers said in an emailed statement to TheStre.
All employees have been offered positions at other McDonald’s locations in the region through January 15, 2026, and many have already accepted new roles.
There are approximately 250 McDonald’s restaurants in New Jersey, all of which are locally owned and operated.
Not everyone is happy with how the process is being handled. Linda Romain, a three-year employee and manager, has been vocal about the McDonald’s closing in Ocean City and criticized the short notice provided to employees.
“The McDonald’s location in Ocean City should be ashamed of its handling of the closure,” Romain wrote in a Dec. 10 Facebook post. “With a month’s notice, giving employees and customers four days’ warning is insufficient. The timing, just before Christmas, exacerbates this issue. McDonald’s office management wants to review the practices at this location.”
Romain told the Atlantic City Press that she believed the company had been aware of the closing for months but waited until the last minute to notify its employees. About 20 people will be affected, he added.
The closure appears to be primarily from the building that housed the Ocean City McDonald’s, which was constructed in 1968. It is said to require extensive renovations that are not financially viable. According to Romain and another employee, workers were informed that the building would likely be demolished and replaced.
The Ocean City closure follows another recent closure, on November 30, at 1330 Jackson St. in Oakland, Calif., which affected approximately 26 staff members.
Employees at McDonald’s Oakland store claim they were notified just days before Thanksgiving, leading to a Nov. 25 labor strike. However, the warning notice indicated that the closure was filed on October 30, 2025.
“I have made the difficult decision to close my Jackson Street restaurant on November 30. My organization is grateful to the local community for their years of support and to the hardworking team members who show up every day to serve our customers,” McDonald’s owner/operator Joseph Wong said in a statement to TheStreet.
The closings come as McDonald’s and other fast-food giants face mounting challenges, including slow customer traffic, declining sales, rising food prices, and weaker spending from cost-conscious consumers.
More restaurant closings:
Fast food prices are expected to increase between 39% and 100% from 2014 to 2024, outpacing the national inflation rate of 33% over the same period, according to Finance Buzz.
McDonald’s prices alone have risen by 100% since 2014, with some menu items more than doubling in price over the past decade.
This contributed to a 1% decline in foodservice traffic for the quarter ending June 2025, according to Circana.
To combat these trends, McDonald’s has expanded its value offerings, including the McValue menu, extra value meals, and $5 meal deals.
“In response to a shrinking food dollar and a strong consumer base, restaurants are turning to innovative business and operating models to capture greater market share,” KPMG restaurant segment leader Paul Fultz and consumer markets strategy leader Joel Rumpold said in a study.
The company also launched the Restaurant Experience team in March, bringing together operations, supply chain, franchising, development, restaurant design, delivery, and Speedy Labs to drive innovation and efficiency.
Additionally, McDonald’s is focusing on growing its global footprint by establishing new locations, as well as upgrading existing restaurants and modernizing its equipment and technology.
However, modernization often means closing restaurants that are too dilapidated to renovate, like its Ocean City location.
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Expanded its digital presence 185 million 90-day active users in 60 markets
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Generating about loyal customers $30 billion On sale systemwide in 2024
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Worldwide comparable sales increased 3.6% In the third quarter of fiscal 2025, with US comparable sales 2.4%.
Despite the improvement, the company remains cautious.
“We continue to be cautious about consumer health in the U.S. and our top international markets and believe pressures will continue well into 2026,” McDonald’s CEO Christopher J. Kempinski said on the earnings call. “It’s a fundamental expectation of our brand to bring consumers through our doors and keep them coming back.”
McDonald’s isn’t the only chain closing locations; Its competitors are also shrinking their nationwide footprints.
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Arby’s: At least 14 locations are closed in eight states.
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Burger King (QSR): Several locations were closed after one of its franchisees filed for Chapter 11 bankruptcy in April.
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Wendy’s (WEN): Around 300 restaurants are planned to close across the country by 2026.
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Hardy’s:Shutter stores in at least seven cities in Illinois and many more in various states by 2025.
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Carl Jr.:Several US locations closed in recent months and more than 20 restaurants in Australia last year.
Source: The Street
“Consumers are saying, ‘We’re struggling, or we’re starting to struggle or we’re thinking more carefully about what we spend,'” said Michael S. Kaufman, a consultant and restaurant lecturer at Harvard Business School. “I don’t know if traditional casual dining restaurants can continue to have the ability to sustain large fleets.”
Related: McDonald’s and Burger King holiday promotions spark major backlash
This story was originally published by TheStreet on December 12, 2025, where it first appeared in the Jobs section. Add TheStreet as a preferred source by clicking here.
