Hearing about restaurant closings has become more common, but the news often hits hardest when old establishments close their doors. These restaurants are much more than places to eat; many have become prominent pieces in their communities, tied to years of local memories and traditions.
Even well-established chains have not been immune to this troubling trend. In recent years, several major restaurant brands have experienced mass closures, some even filing for bankruptcy, as rising costs and mounting debt made it difficult for them to stay afloat.
Founded in 1972, Houlihan’s is an American chain of casual dining restaurants and bars 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 in recent years, significantly shrinking its footprint in several states.
At least five Houlihan’s locations have closed in recent months. Despite the flurry of closings, its parent company, Landry’s, Inc., has not issued a public statement regarding the closings; instead, the operators opted for displaying notices on paper at the entrances to the restaurant.
Noblesville, Indiana: Closed on January 1, 2026 (Source:current publication)
Hershey, PA: Closed on 31 December 2025 (Source:abc27)
Garland, Texas: Closed on August 24, 2025 (Source:culture map)
Long Island, New York: Closed on January 1, 2026 (Source:Greater Long Island)
Upper Arlington, Ohio: Closed on January 1, 2026 (Source:614 NOW)
Houlihan’s is closing several restaurants in several states.Shutterstock” loading=”eager” height=”540″ width=”960″ class=”yf-lglytj loader”/>
Houlihan’s is closing several restaurants in several states.Shutterstock
Houlihan’s financial challenges date back several years. In 2019, HRI Holding Corp., the brand’s then-parent company, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware, reporting between $50 million and $100 million in both assets and liabilities, as stated in the filing.
The company cited an expiring loan and “unsustainably high occupancy costs” at many locations as key contributors to its debt. The bankruptcy filing was intended to facilitate a sale, eventually leading to an asset purchase agreement with Landry’s, Inc. for $40 million in cash.
More closed restaurants:
At the time, HRI operated 47 restaurants in 14 states, including 34 Houlihan’s locations. However, the bankruptcy filing did not include 21 other Houlihan’s franchise restaurants.
HRI reported $202 million in revenue and about $9 million in revenue for fiscal 2019, according to Nation’s 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, among others, acquired Houlihan’s with the goal of preserving and growing the brand’s legacy.
Houlihan’s isn’t the only chain facing closures. The broader restaurant industry is struggling with changing consumer habits, rising costs and continued economic uncertainty. As these pressures intensify, even some of the largest and most recognizable chains have been forced to close locations nationwide.
Inflation played a significant role in the industry’s struggles. Food away from home prices rose 3.7% in the 12 months ending in September 2025, according to recent data from the US Bureau of Labor Statistics.
Over the past five years, food and labor costs for the average restaurant have each risen about 35 percent, according to the National Restaurant Association.
To offset these higher expenses, menu prices rose an average of 31% between February 2020 and April 2025, based on data from the US Bureau of Labor Statistics.
As prices rise, customer traffic fell 1 percent in the food service industry during the quarter ending June 2025, according to Circana.
“This presents a significant challenge for restaurants as home-cooked meals directly displace demand for dine-in establishments, which translates into reduced revenue and decreases in customer traffic as demand shifts to grocery stores,” said Coresight Research analyst Sujeet Naik.
Despite ongoing challenges, the industry has shown signs of resilience. Spending at food and beverage venues reached a record annual rate of about $1.25 trillion in the second quarter of 2025, according to the Bureau of Economic Analysis.
“Despite the many challenges facing both the industry and the broader economy, actual spending at restaurants and foodservice establishments remains slightly above trends, a very encouraging sign,” said industry experts at the National Restaurant Association.
Related: Iconic Italian restaurant chain is shutting down 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 favorite source by clicking here.
