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It’s been a tough year for many restaurant chains. A combination of rising food costs, rising labor rates, and consumer caution about spending has caused a number of once-popular chains to struggle.
Some simply have not recovered from the damage caused by the Covid pandemic, which forced many chains to go to a takeout-only model. This worked for select restaurants that invested in the digital technology needed to thrive during that period while others simply added to their debt.
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For its part, Red Lobster was hurt by all of the above in addition to its mistake in launching an unlimited shrimp promotion, which resulted in it losing millions of dollars. This led to the chain filing for Chapter 11 bankruptcy and closing nearly 50 stores.
The seafood chain is not alone in closing restaurants. Boston Market, although it has not formally filed for bankruptcy, has seen most of its locations close as it faces significant debt and court-ordered payments that its owners have been unable to meet.
This situation has led to speculation about many restaurant chains closing their locations or even closing entirely. This has led to some wild speculation on social media, which is to be expected in this unregulated space, but sometimes rumors can cross over into the mainstream.
When that happens, real damage can be done, and in one major case, an affected restaurant had to ask its CEO to speak out to respond to claims that his chain would close all of its locations.
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The national burger chain responds to the closure rumor
The challenge for any restaurant chain that is rumored to be struggling and closing locations is that there is often some truth mixed in with the misinformation. A relatively popular Instagram page recently shared a viral post detailing restaurant chains that were closing certain locations or closing their doors entirely.
The problem is that while parts of the post are true, others are not, or at least the company in question claims they are not. One of the claims in the post: “Buffalo Wild Wings is closing all of its Canadian locations plus 60 in the U.S.,” is actually true, while others are somewhat true.
“Pizza Hut plans to close 500 locations,” for example, is somewhat true as the chain will end in-person dining at 500 locations, but will serve many of those markets through takeout and delivery locations.
The Instagram post also shared information about another national restaurant chain that the company’s CEO insists is untrue.
“Fudruckers is expected to close all of its locations by the end of the year,” the post read.
Fuddruckers retracts closure rumor
Fuddruckers has a lofty mission that it shares on its website.
“Some people are driven to create the world’s fastest cars or the world’s tallest buildings. Our calling is a little less glamorous but a lot tastier. We were born to make the world’s greatest hamburger.”
This is a bold claim and difficult to refute or accept, but the chain’s CEO insists that the chain will not be closed.
“Our brand has been made aware of misinformation reported by an unreliable blog,” Fuddruckers CEO Nicholas M. Perkins told Denver’s. “Our brand will not be closing all stores in 2024.” 9 news. “Our dynamic group of franchisees continues to operate restaurants nationally and internationally every day. This year, we will welcome new franchisees to our system.”
Perkins also said the burger chain, which currently has 55 restaurants, plans to expand and open new locations.
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The chain, which was founded in 1980, also shared a message on its Twitter page.
“A message from our CEO. #BiggerBolderBeefier #HereToStay,”
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