Rising costs and shifting consumer habits are forcing casual dining chains to consolidate, with some closing locations without filing for bankruptcy. The U.S. restaurant industry, still recovering from 2025's economic woes, faces persistent challenges. On The Border Mexican Grill closed 40 non-performing stores in February 2025, yet avoided bankruptcy, while FAT Brands shuttered 32 locations including Smokey Bones and Johnny Rockets in January 2026, also filing Chapter 11. Darden Restaurants closed 28 Bahama Breeze locations in February 2026. These closures reflect a broader trend: higher labor and food costs (up 35% since 2019) and menu price increases (31% since 2020) are pushing consumers away, despite some chains like Bristol Bar & Grille closing only its original Louisville location to consolidate.