Once-Struggling Burger Chains That Are Making A Comeback

Yahoo

12-04-2025

The past few years have been pretty brutal for the restaurant industry. Many businesses struggled to stay afloat during the pandemic, and even as the world reopened, countless restaurants never made a full recovery. Add to that the challenges of inflation, rising food costs, and shifting consumer habits, and it becomes clear why even long-standing establishments have had a hard time surviving.
Burger chains, in particular, face a unique challenge. As one of America's most beloved foods, the demand for burgers has never wavered — but neither has the competition. With fast food giants, trendy smash burger joints, and gourmet burger eateries all vying for customers, standing out in an oversaturated market is no easy feat. Some burger chains that once flourished hit rough patches in recent years, closing locations or declaring bankruptcy. Despite these challenges, many formerly struggling restaurants are making impressive comebacks, and burger chains are no exception. In 2025, when burger chain closures are becoming the norm, it's refreshing to see these once-struggling burger brands bouncing back — hopefully, for good.
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For years, Fuddruckers was a staple of the American burger scene, known for its build-your-own burgers and family-friendly atmosphere. At its peak, the chain boasted over 100 locations, but financial struggles and changing consumer preferences led to a sharp decline. Many of its restaurants shut down, and by 2022, the situation intensified when its parent company, Luby's Inc., fully dissolved, forcing Fuddruckers into an uncertain future. For a while, it seemed like Fuddruckers might disappear entirely, another casualty of the current challenging dining landscape.
However, after much turbulence, Fuddruckers is making a comeback. The brand is slowly expanding again, returning to neighborhoods it once left behind, thanks in part to Nicholas Perkins, who acquired the franchise after Luby's downfall. The businessman is committed to the revitalizing the restaurant, sharing with Nation's Restaurant News in 2021, "I believe there are good hamburgers out there, but I don't believe there's a hamburger greater than what we serve ... I feel like I have the skill set to transition the brand to greater heights." The company's latest success has been the opening of the Washington D.C. Chinatown location, which had previously shut down in 2017 after fiscal concerns. The resurgence is fueled by a renewed focus on quality and nostalgia, drawing back longtime fans while appealing to a new generation of burger lovers.
It's no secret that Burger King is a household name in the U.S., but even the biggest brands aren't immune to setbacks. In 2023, the fast food giant made the tough call to close around 300 restaurants, trimming underperforming locations to stabilize the business. While this could have signaled a downward spiral, the strategy paid off, and by 2024, closures slowed, and sales began to rise. Now, Burger King is doubling down on its comeback with impressive changes, including major renovation plans and new combo meal offerings, showing a clear commitment to reinvesting in the brand and winning back customers.
Even before its renewed momentum, Burger King was still far from failure. It consistently ranks among the top three burger chains in the U.S., alongside McDonald's and Wendy's. Not to mention, the company's fresh efforts are starting to pay off. The last quarter of 2024 showed 1.5% growth according to data from QSR, with anticipation for 2025 to be an even stronger year, proving that Burger King's strategy of store upgrades and menu innovation is resonating with customers.
Shake Shack may have built a cult following with its high-quality burgers, dippable cheese sauce, and frothy shakes, but this fan-favorite chain wasn't spared from the financial turmoil of the pandemic. Even after shifting focus to a takeaway model, sales plummeted by 29% in 2020, forcing the company to cut 20% of its corporate staff. While Shake Shack didn't resort to mass closures like some of its competitors, it struggled to maintain profitability in the years that followed. In 2022, staffing shortages remained a persistent issue even after increasing pay to about $20 per hour. Luckily, by the end of 2022, total revenue was up by a healthy 17.5%, though shares simultaneously dipped by $0.05 (via Restaurant Business).
Now, after years of highs and lows, Shake Shack is proving it still has plenty of fight left. In 2024, revenue jumped 14.8% compared to the previous year, and in January 2025, the company projected revenue increases between 16% and 18%. Even with its expanded footprint, Shake Shack still lags behind burger giants like McDonald's and Burger King in the sheer number of locations, but the recent uptick in sales suggests Shake Shack is setting the stage for an even stronger presence in the burger industry.
Back Yard Burgers has experienced a rough road, declaring bankruptcy not once but twice in about a decade. The first bankruptcy came in 2012 after years of struggling with declining sales and increased competition. Though the company was able to restructure and continue operations, it never fully regained its footing. By 2023, Back Yard Burgers once again found itself in financial distress, filing for bankruptcy due to mounting debt and continuous closed locations. At the time of filing, the company had anywhere between $1 and $10 million in assets, with $10.9 million of secured debt and over $185,000 in credit card debt.
With such serious numbers, the brand, known for its flame-grilled burgers and premium ingredients, ran the risk of disappearing altogether. However, in the fourth quarter of 2024, the chain emerged from bankruptcy, signaling the start of yet another attempt at a turnaround. Now, with a fresh start in 2025, Back Yard Burgers has a chance to rebuild, but this is just the start of the chain's comeback. With just seven remaining locations, the company has yet to unveil major expansion plans. Its focus will likely be on refining its menu and potentially re-entering markets where it previously closed stores. If it can differentiate itself in an increasingly crowded fast food landscape, Back Yard Burgers may just prove that it still has a place in the industry.
Read the original article on Mashed.