The fast-food burger industry has faced economic challenges over the past year that have led large chains, such as A&W Restaurants, to close locations.
A major problem for burger chains was mixed sales results over the past year.
The leading fast-food burger chain is enjoying another successful year, with McDonald’s US sales in 2025 up 2.1%.
Wendy’s, the industry’s No. 2 burger chain, didn’t end the year so well, with its U.S. sales down 5.2% in 2025, but the No. 3 burger chain, Restaurant Brands International’s Burger King, had a 1.6% increase in U.S. sales.
Wendy’s said it plans to close 5% to 6% of its 5,831 U.S. restaurants listed on its website, or about 292 to 350 underperforming units, in 2026, according to its fourth-quarter earnings call as part of its Project Fresh turnaround plan.
Other burger chains are also closing underperforming locations that no longer make economic sense to operate.
A&W closes franchises
A&W Restaurants closed its location at River Hills Mall in Mankato, Minnesota, on April 29, 2026, due to financial difficulties, the franchisee announced on its Facebook page.
“It is with a very sad heart that we have to announce that we have closed for financial reasons. We appreciate everything you have done for us. We will miss and love you all!!” the statement said.
The franchisee did not disclose specific details about why he needed to close the restaurant. The A&W location opened in late 2018, according to KEYC-TV.
The restaurant was struggling
Another A&W restaurant, located in Pocatello, Idaho, permanently closed its store at 1335 N. Arthur Ave., on April 2, 2026, as the franchisee was experiencing financial difficulties and the A&W corporation canceled its franchise agreement, Idaho State Journal reported.
The restaurant’s general manager, Reed Rollins, said he and other Pocatello employees were informed just days before the closing that the A&W was closing, but thought it was an April Fool’s Day prank, according to the State Journal.
The 107-year-old A&W chain announced on social media that the Pocatello location would close on April 3, but after an outpouring of support from the community, the restaurant reportedly sold out of its remaining stock and closed a day early on April 2.
“Yesterday we made $4,500 a day, when we used to make $1,300,” Rollins told the State Journal. “It was amazing. I even cried a little because I had been here from the beginning.”
The Pocatello A&W location opened in 2016 and its original owner passed away in 2018.