Hearing about restaurant closings has become increasingly common, but news often hits hard when long-established establishments close their doors. These restaurants represent much more than places to eat; Many have become key pieces of their communities, bound by years of memories and local traditions.
Even well-established chains are not immune to this troubling trend. In recent years, many major restaurant brands have largely closed, some even filed for bankruptcy, as rising costs and mounting debt have made it difficult for them to continue operating.
Founded in 1972, Houlihan’s is a casual American restaurant and bar chain that once had a strong national presence. Today, the brand operates 22 locations nationwide, according to its website.
While that number is still impressive, Houlihan’s has closed several restaurants over the past few years, significantly shrinking its footprint in several states.
In recent months, at least five Houlihan’s locations have closed. Despite the wave of closures, its parent company, Landry, Inc., has not issued a public statement addressing the closures; Instead, operators have opted to post paper notices at restaurant entrances.
Noblesville, Indiana: Closes January 1, 2026 (Source:current publication)
Hershey, Pennsylvania: Closes December 31, 2025 (Source:abc27)
Garland, Texas: Closes August 24, 2025 (Source:culture map)
Long Island, New York: Closes January 1, 2026 (Source:Greater Long Island)
Upper Arlington, Ohio: Closes January 1, 2026 (Source:614 NOW)
Houlihan’s financial challenges trace back several years. In 2019, HRI Holding Corporation, the brand’s then-parent company, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware, reporting both $50 million and $100 million in assets and liabilities, according to the filing.
The company cited maturing loans in several locations and “unsustainable high business costs” as the main contributors to its debt. The bankruptcy filing was intended to facilitate the sale, which ultimately led to Landry’s, Inc. led to an asset purchase agreement for $40 million in cash with
More restaurant closings:
At the time, HRI operated 47 restaurants in 14 states, including 34 Houlihan’s locations. However, the bankruptcy filing did not include 21 additional franchised Houlihan’s restaurants.
HRI reported $202 million in revenue and about $9 million in earnings for fiscal 2019, according to Nation Restaurant News.
Landry’s, Inc., which owns nearly 50 well-known restaurant brands including Landry’s Seafood, Saltgrass Steak House, Bubba Gump Shrimp Co., and Mastro’s Restaurants, acquired Houlihan’s with the goal of preserving and enhancing the brand’s legacy.
Houlihan’s isn’t the only chain facing closure. The broader restaurant industry is struggling with changing consumer habits, rising costs, and ongoing economic uncertainty. As these pressures intensify, some of the largest and best-known chains have also been forced to close locations nationwide.
RELATED: Classic fast-food burger chain closes a third of its restaurants
Inflation played an important role in the industry’s struggles. The cost of meals away from home rose 3.7% in the 12 months ending in September 2025, according to the most recent U.S. Bureau of Labor Statistics data.
According to the National Restaurant Association, over the past five years, food and labor costs for the average restaurant have each increased by about 35%.
To offset these higher costs, menu prices rose an average of 31% between February 2020 and April 2025, based on US Bureau of Labor Statistics data.
As prices rise, customer traffic in the food service industry fell 1% in the quarter ending in June 2025, according to Circana.
“This poses a significant challenge for restaurants, as home-cooked meals directly replace demand from dining establishments, translating into lower revenue and reduced customer traffic as demand shifts to grocery stores,” said Coresite Research analyst Sujit Naik.
Despite ongoing challenges, the industry has shown signs of resilience. According to the Bureau of Economic Analysis, spending on dining and drinking places will reach a record annual rate of nearly $1.25 trillion in the second quarter of 2025.
“Despite several headwinds facing both the industry and the broader economy, actual spending trends in restaurants and food service establishments remain slightly up, a very encouraging sign,” said National Restaurant Association industry experts.
Related: Iconic Italian restaurant chain closing more than 200 locations
This story was originally published by TheStreet on January 11, 2026, where it first appeared in the Restaurants section. Add TheStreet as a preferred source by clicking here.
Much of the growth in artificial intelligence (AI) has been driven by software and chatbots,…
Work friendships can be comforting — until they make you question everything. Like when someone…
High yielding dividend stocks often have high risk profiles. with about 8% yield, MPLX (NYSE:…
Until recently, the narrative around AI was that the $600 billion in annual corporate capital…
As someone who has covered the retail sector for more than a decade, I can…
Michael Burry is sounding the alarm about what could happen if Bitcoin continues to slide…