Hearing about restaurant closures has become increasingly common, but the news often hits the hardest when long-standing establishments shut their doors. These restaurants represent far more than just places to eat; many have become prominent pieces of their communities, tied to years of memories and local traditions.
Even well-established chains have not been immune to this troublesome trend. In recent years, several major restaurant brands have undergone mass closures, with some even filing 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 across multiple states.
In recent months, at least five Houlihan’s locations have shut down. Despite the wave of closures, its parent company, Landry’s, Inc., has not issued a public statement addressing the shutdowns; instead, operators have opted for posting paper notices on restaurant entrances.
Noblesville, Indiana: Closed January 1, 2026 (Source:Current Publishing)
Hershey, Pennsylvania: Closed December 31, 2025 (Source:abc27)
Garland, Texas: Closed August 24, 2025 (Source:Culture Map)
Upper Arlington, Ohio: Closed January 1, 2026 (Source:614NOW)
Houlihan’s closes several restaurants across multiple states.Shutterstock
Houlihan’s financial challenges trace 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, ultimately leading to an asset purchase agreement with Landry’s, Inc. for $40 million in cash.
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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 approximately $9 million in earnings for fiscal year 2019, according to Nation’s Restaurant News.
Landry’s, Inc., which owns nearly 50 renowned 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 has been struggling with shifting consumer habits, rising costs, and ongoing economic uncertainty. As these pressures intensify, even some of the biggest and most recognizable chains have been forced to close locations nationwide.
Inflation has played a significant role in the industry’s struggles. Prices for food away from home rose 3.7% in the 12 months ending September 2025, according to recent U.S. Bureau of Labor Statistics data.
In the last five years, food and labor costs for the average restaurant have each increased by around 35%, according to the National Restaurant Association.
To offset these higher expenses, menu prices climbed an average of 31% between February 2020 and April 2025, based on U.S. Bureau of Labor Statistics data.
As prices rise, customer traffic has declined 1% across the food service industry during the quarter ending June 2025, according to Circana.
“This poses a significant challenge for restaurants, as home-cooked meals directly substitute demand for dining establishments, translating to reduced revenues and declines 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 eating and drinking places reached a record annual rate of approximately $1.25 trillion in the second quarter of 2025, according to the Bureau of Economic Analysis.
“Despite numerous headwinds facing both the industry and the broader economy, real spending at restaurants and foodservice establishments remains slightly above trend, a very encouraging sign,” said National Restaurant Association industry experts.
