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8 Once-Loved Chain Restaurants Diners Say Aren't Worth It Anymore

Households are cutting spending, and it's hitting restaurants hard.

By Cassandra Yorgey , Edited by Calista Headrick

Updated April 13, 2026

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People love to eat delicious food more than they like to cook it for themselves, and restaurants prosper when wages are high and families can afford discretionary spending — like going out to eat more often.

Unfortunately, when times are tough and pinching pennies is the new normal, frequent diners are reconsidering just which restaurants are worth it now. Americans simply can't afford to go out to eat while costs for basic necessities like groceries, housing, gas, and utilities are all on the rise.

See which national restaurant chains are losing business during this economic pinch because consumers just don't think they are worth it anymore.

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Panera Bread

It once was the go-to place for students, remote workers, and others to hang out while munching on bread, soups, and salads, but many now see Panera as an inconvenient and expensive fast food establishment.

A series of poor management decisions has contributed to the fall of the bakery giant. The closure of their bakeries and switch to frozen bread provided by third-party suppliers may be the final nail in the coffin, since the chain was built around the premise of fresh-baked goods made daily.

Customers claim that the rest of the menu has gone down in terms of quality, smaller portions, and higher prices, and they aren't interested in any of it. "Prices were too high and portions too small a decade ago. Good riddance," said NoChillNoVibes on Reddit.

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Applebee's

Applebee's has been struggling for several years. During the pandemic, they embraced "ghost kitchens" and "virtual restaurants" that gave them a temporary profit boost. Ultimately, customers were left feeling duped. "Ordered from 'Cosmic Wings' (which turned out to be Applebees)," said Redditor Shy-Watermelon. "Definitely got played hard by Applebees lol."

Now, amid financial strain, they are shuttering locations and franchisees are seeking Chapter 11 bankruptcy protections.

Outback Steakhouse

The pseudo-Australian chain used to be king of the steak dinner on a budget. Now, Outback is facing financial challenges amid a plethora of steakhouse choices for customers and shrinking budgets for expensive meals like steak. Though in the fourth quarter of 2025, Outback achieved its first positive traffic quarter since the fourth quarter of 2021.

Customers have complained about the beef quality, and the chain has quietly been shrinking their restaurant footprint. What could bring customers back? Embracing the Aussie-inspired theme by serving actual Australian cuisine alongside steaks and Bloomin' Onions. Bring us the finger limes, Outback!

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IHOP

IHOP is owned by the same parent company as Applebee's, and both restaurant chains have been struggling. Their share price has been cut in half since 2021, and they're moving forward by fusing the two chains into one.

New combined Applebee's and IHOP restaurants are already appearing this year, with the first opening in New York about 30 miles north of Manhattan. This may not please customers, though. "I had the unfortunate pleasure of eating at an IHOP last year and the food was terrible," said ConstructionOwn9575 on Reddit. "Way worse than I remember, and you're forking over at least $15 for it."

Carrabba's

Carrabba's shares a parent company with Outback Steakhouse, and Bloomin' Brands is scaling back their restaurant chains — including Carrabba's. Approximately 22 of their restaurants will be closed over the next four years, and 21 locations were shuttered in 2025.

Now, consumers seem to be trading chain Italian restaurants for local indie spots with lower prices, or upgrading to more expensive upscale options. "Our 2 locally owned Italian places are same price as the menu you linked for their chicken parm. Comes with a small side of spaghetti and bread," said cltreader.

"The chicken now only comes with 1 side vs 2 like it used to. I don't get chicken anymore due to the price hike and them taking away a side," added Trill_Knight.

Starbucks

A cup of coffee costs how much now? The newest special, an Iced Dubai Chocolate Mocha, is more than $7 — and that's just for a medium!

Consumers once considered the price a reasonable premium for convenience, ambiance, and a delicious caffeinated beverage, but as the prices rise and wages stagnate, customers are just not willing to spend the extra money anymore. They just can't justify splurging $5 to $7 on a coffee to go.

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Chipotle

A February earnings call had Chipotle CEO Scott Boatwright revealing the restaurant will be raising prices by up to 2% this year, a change many aren't looking forward to. "Chicken bowl now gonna be over $10 where I'm at. I remember when it was $6.53," said tdrizzzle on Reddit.

Additionally, an internal review of their consumer research found that 60% of their core customer base earns over $100,000 per year, as the average household income. "That gives us confidence that we can lean into that group in a more meaningful way," Boatwright said.

But any restaurant that relies on a six-figure income for affordability seems doomed in this economy. "I don't know why they think that people who make 100k (not what it used to be btw) are going to be excited to spend more," said Redditor Michael424242. "Like, if you had to spend $30 on lunch, wouldn't you go to a nicer place? Higher earners like savings also."

McDonald's

The Golden Arches aren't in danger of failing, but they have lost a significant portion of low-income customers. McDonald's chief executive Christopher Kempczinski told investors at the end of 2025 that fast food has seen a double-digit drop among low-income customers and an increase among higher earners of a similar magnitude.

That's a problem for a restaurant that rose to prominence by offering inexpensive meals that accommodated both children and adults.

Bottom line

The data isn't looking good for the restaurant industry. Black Box Intelligence compared restaurant sales data from 2025 against peak annual performance since 2019 and found that 9% of all full-service restaurants are at risk for closure this year.

Their analysis found that cumulative inflation has driven costs up by nearly a third over that period of time, and is consistent with consumer complaints of rising costs making dining out unaffordable.

The average American doesn't want to work a second job or pick up a side gig just to be able to enjoy restaurant dining now and again. That means restaurants need to step up their game and decrease prices to win back consumer sales.

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