INDUSTRY OUTLOOK
- Micah Moore
- Feb 9
- 3 min read
In early 2026, over 15 major restaurant chains are closing locations or restructuring financially.
Confirmed 2026 Closures
Pizza Hut: Closing 250 underperforming U.S. restaurants as part of modernization
efforts.
Wendy’s: Shuttering 200–350 locations to focus on higher-performing units.
Starbucks: Executing a $1 billion plan that includes closing about 400 North American
stores.
Noodles &Company: Closing 30–35 more sites after previous reductions.
Jack in the Box: May close up to 200 locations to address debt and performance issues.
Chains in Financial Distress or Bankruptcy
Hooters: Filed for Chapter 11; selling company-owned stores to franchisees.
TGI Fridays: Operating under 100 U.S. locations after a 2024 bankruptcy.
On the Border: Filed for bankruptcy, now with about 60 locations.
Boston Market: Down to roughly 15 operating stores from an original 1,200.
Bar Louie: Managing $50 million in debt following bankruptcy.
Smokey Bones: Now at 26 locations after closures and conversions.
Other Chains Expected to Shrink
Denny's: Likely to continue closures in 2026 after eliminating 150 sites last year.
Outback Steakhouse: Closing over 40 units amid strategic restructuring.
Long John Silver's: Fewer than 500 restaurants remain after years of decline.
Optimizing Procurement for Profit: How Strategic Supply Chain Partners Drives EBITDA
for Large Restaurant Groups
In the high-stakes world of large-scale restaurant operations, the difference between a record-
breaking year and a stagnant one often isn't found on the menu—it's found in the supply chain.
Larger chains need to rethink supply chain, logistics, and procurement. It’s a different
environment in 2026 than it was as recently as 5 years ago, and requires bold, new innovative
thinking.
As restaurant groups scale, the complexity of managing thousands of SKUs across multiple
regions can lead to "hidden";costs that quietly erode margins.
Strategic Supply Chain Partners (SSCP) works with large restaurant companies to transform
these logistical hurdles into a competitive advantage, directly lowering the Cost of Goods Sold
(COGS) and bolstering EBITDA. Here is how their strategic approach moves the numbers in
the right direction.
1. Renegotiating Complex Distribution Agreements
Large restaurant groups often operate under outdated Master Distribution Agreements
(MDAs) that include legacy fees or suboptimal pricing tiers. SSCP uses their "insider";
knowledge of distribution logistics to audit these contracts and uncover hidden expenses.
The EBITDA Impact: By stripping away unnecessary "add on"; fees and securing more
favorable distribution terms, companies see an immediate reduction in overhead without
changing a single ingredient.
2. Direct Manufacturer Negotiations & Volume Aggregation
While most large chains believe they have "national" pricing, they may still be missing out on
deeper manufacturer rebates or deviated pricing. SSCP acts as an outsourced purchasing
department, negotiating volume directly with manufacturers to bypass intermediate markups.
The COGS Impact: Securing long-term procurement contracts for high-usage "center of the plate" proteins ensures price stability and significantly lower unit costs.
3. Precision Auditing and Price Validation
Price creep is a common issue for large-scale operators. SSCP provides rigorous, audited pricing
validation to ensure that the prices charged by distributors match the negotiated contracts.
The Operational Advantage: This continuous monitoring prevents "bad contracts" from
draining profitability and ensures that savings identified during negotiations actually
reach the bottom line.
4. Strategic & "Forward buys" on Key Commodities
In a volatile market, the ability to anticipate price hikes is essential. SSCP leverages industry
intelligence to execute "forward buys" on high-usage items, locking in lower rates before market prices climb.
The Financial Result: This risk management strategy protects EBITDA from sudden
commodity spikes, providing the budget certainty that CFOs and investors require.
5. Product Line Consolidation Across Brands
For restaurant groups with multiple concepts, there is often massive redundancy in purchasing.
SSCP analyzes data to consolidate like inventory items across different brands.
The Bottom Line: Consolidating SKUs allows smaller brands within a portfolio to
access the "large chain" pricing tiers usually reserved for much larger competitors,
driving down COGS across the entire organization.
Why Large Restaurant Groups Should Choose SSCP
Unlike traditional consultants who charge flat fees, Strategic Supply Chain Partners often
works on a contingency basis—if they don't find savings, they don't get paid. This "no risk"
model aligns their success directly with the restaurant's EBITDA growth. Ready to see where
your supply chain is hiding profit?
Learn more at SSC Partners.
Or Contact: Micah Moore @ 225-772-9730 or email: micah.moore@ssc.partners
Chris Rodrigue @ 985-778-1515 or email: chris.rodrigue@ssc.partners
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