Are sit-down restaurant chains dying out?
As more full-service restaurant chains close locations, one report suggests it’s because they’re losing business to quick-service markets.
Last month, Canada’s Global News reported that Red Robin would shut down all five of its locations in Alberta by early December.
The company confirmed those decisions to FOX Business on Friday evening, saying: “The closures are part of a reassessment of Red Robin's real estate portfolio -- one of the strategic priorities that Red Robin had previously announced.”
Red Robin confirmed to FOX Business on Friday that it would be closing all five of its locations in Alberta, Canada by Dec. 8.
The company’s interim CEO Pattye Moore had announced in May that Red Robin would close 10 of its restaurants and continue to reassess the company’s properties, Nation’s Restaurant News reported at the time.
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Meanwhile, at least seven Friendly’s locations in New York, Massachusetts and New Hampshire have closed recently, with two more -- one in Stoneham, Mass., and one in Manchester, N.H., -- closing on Nov. 10, Friendly's confirmed to FOX Business.
"As shifting consumer demographics and market dynamics present challenges across the industry, it is incumbent on us to regularly evaluate our restaurant footprint with a focus on long-term viability," the spokesperson told FOX Business. "Unfortunately, in some cases, this process results in the difficult decision to close underperforming locations that can no longer be sustained by the local market."
Approximately 32 Friendly's restaurants have reportedly closed or are in the process of closing this year, according to recent reports.
Two locations in Long Island, N.Y., closed in September and October, Newsday reported earlier this week. Restaurant Business Online also previously reported that four locations in Massachusetts and three locations in New Hampshire have closed or are in the process of closing.
Those don’t include the 23 Friendly’s locations that shut down in April in New York, Connecticut, Maine, Massachusetts and New Hampshire.
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According to Restaurant Business Online, “Casual dining is losing business to the fast-casual and quick-service markets.”
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Chain restaurants reportedly saw traffic fall 3.5 percent in the third quarter, the website reported, citing data from Black Box Intelligence.
Friendly’s and Red Robin aren’t the only restaurant chains that shuttered multiple locations in the past few years.
In August, Pizza Hut -- owned by Yum! Brands -- announced that it would vacate hundreds of its restaurants to focus on fast-casual dining and delivery. According to MarketWatch, the company planned to close about 500 sites.
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Restaurant Business Online also reported that Ruby Tuesday has closed 26 locations, Steak ‘n Shake has shut down 106 restaurants and O’Charley’s has closed 19 locations this year.
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FOX Business’ Thomas Barrabi and James Leggate contributed to this report.