U.S. restaurant closings fell below 1,000 this spring, marking at least a 7-year low according to preliminary restaurant industry trends data from Datassential’s Sales Intelligence platform.

In April 2025, the latest month for which U.S. restaurant data is available, total restaurant closings hit just 886 — an 82% decrease from the number of closures recorded in January 2018. This represents the most significant decline in restaurant closure statistics 2025 has seen to date.

Key Insight: With only 886 closures in April 2025, the restaurant industry is experiencing unprecedented stability in business continuity.

Dramatic Monthly Decline in Restaurant Closures

The April figures also represented a marked decrease from recent months. The number of U.S. restaurant closures in April was nearly half the number of closures in February or March. In those months, closures hit 1,645 and 1,655, respectively, according to Datassential’s U.S & Canada Operators database, part of the company’s comprehensive Datassential One platform.

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Segment Analysis: Quick-Service Leads Both Closures and Openings

The highest number of closures in April occurred in the quick-service segment, followed by casual dining. However, these segments also recorded the highest number of new restaurant openings, indicating healthy market turnover rather than systematic decline. Fine dining had the fewest closures but also represents the smallest segment overall in terms of total units.

Restaurant Industry Trends by Cuisine Type

By cuisine category, American, Mexican, and Coffee/Bakery restaurants accounted for the most closures in our foodservice sales insights analysis. Notably, these three categories also led in opening counts, suggesting robust market activity rather than category decline.

Lowest Closure Categories:

• African restaurants (lowest closures and openings)
• European cuisine (emerging growth category)
• Thai restaurants
• Caribbean cuisine
• South American restaurants

Steakhouse Performance: Steakhouse closure rates have slowed significantly since the pandemic, though new openings remain near the bottom when ranked by cuisine type.

Explore detailed Menu Trends data for cuisine-specific insights.

Market Forces Driving Conservative Restaurant Investment

It’s perhaps no surprise that restaurant investors and operators are behaving more conservatively in the post-COVID landscape. Restaurants continue navigating a complex operational environment characterized by:

• Persistent labor shortages across all service segments
• Skyrocketing food costs impacting profit margins
• Ongoing supply chain disruptions
• Increased consumer expectations for service speed and customization
• Demand for better value propositions

The New Restaurant Reality: Doing More with Less

Operators are stretched thin trying to optimize operations while maintaining service quality. Common adaptation strategies include:

• Reducing operating hours to manage labor costs
• Simplifying menus to streamline kitchen operations
• Investing in technology solutions for efficiency gains
• Focusing on core menu offerings rather than expansion

What This Means for Operators, Suppliers, and Sales Teams

Focus outreach efforts in metropolitan areas with stable closure rates. Leverage this restaurant closure statistics 2025 data to support consultative selling approaches with brands that have paused expansion plans. The current environment favors relationship-based selling over volume-focused strategies.

For Distributors and Manufacturers

With fewer new restaurant openings, prioritize supporting existing operators in performance optimization. Innovation and operational efficiency matter more than volume growth in the current market. Consider developing solutions that help restaurants maximize revenue from existing locations.

For Restaurant Operators

Fewer new market entrants means reduced local competition in many markets. However, consumer expectations remain elevated. Success factors include:

• Menu innovation that drives traffic
• Operational consistency across all touchpoints
• Strategic pricing that balances value perception with profitability

Book a Sales Intelligence Demo to access real-time market data for strategic planning.

Frequently Asked Questions

Q: How many U.S. restaurants closed in April 2025?

A: Just 886 restaurant closures were recorded in April 2025, representing the lowest monthly total since at least 2018 based on available data.

Q: What types of restaurants are closing the most locations?

A: Quick-service restaurants had the highest absolute number of closures, followed by casual dining establishments. However, these segments also led in new openings, indicating healthy market turnover.

Q: Why are fewer restaurants opening despite low closure rates?

A: A combination of factors including inflation, persistent labor shortages, elevated food costs, and increased operational complexity is causing investors and operators to take a more conservative approach to new restaurant development.

Q: Which cuisine types are most resilient?

A: Emerging global cuisine categories including European, Thai, Caribbean, and South American restaurants showed the lowest closure rates, while traditional categories like American, Mexican, and Coffee/Bakery showed higher activity in both closures and openings.

Q: Where can I access more detailed restaurant industry data?

A: Datassential’s Sales Intelligence platform provides comprehensive, real-time restaurant industry analytics including opening/closing trends, menu analysis, and market performance data.

Take Action with Restaurant Industry Intelligence

Whether you’re planning expansion, analyzing competitive landscapes, or identifying sales opportunities, access to accurate, timely restaurant industry data is essential for strategic decision-making.

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Samantha Des Jardins is the Content Marketing Manager at Datassential. For more information on Datassential’s Sales Intelligence capabilities, visit this link, or you can request a demo or more information here.

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