The number of independent restaurants across the U.S. is shrinking.
At the end of 2025, there were 412,498 independent restaurants across the country, according to data from Technomic. That was down 2.3% from the prior year, reflecting a net loss of about 9,500 restaurant locations.
Meanwhile, the Top 500 restaurant chains grew their unit count by 1.5%, adding about 3,600 units to reach a total of about 239,538 locations. Those chains represented about 35% of the restaurant industry as a whole last year.
The loss of independent restaurants should not be a surprise to anyone watching the challenges all restaurants are facing, said David Henkes, senior principal with Technomic, which is a sibling brand to Restaurant Business.
“It’s harder than ever, for the industry in general, but for independents in particular to operate,” said Henkes.
Costs for labor, rent and insurance—basically every input cost an operator has—have increased from mid- to high-single digits, he said. At the same time, margins and profitability have gone down significantly.
“Menu prices continue to go up, and that’s the primary lever operators can use to offset costs,” said Henkes. But consumers are more cautious about spending, so such increases can hurt traffic.
“Chain restaurants are better positioned for such challenges because they have deeper pockets,” said Henkes.
Independent operators, on the other hand, are facing the same input in costs but are far more vulnerable to even small declines in traffic, he said.
“Given the environment we’re in, a lot of operators have closed their doors because they can’t afford to stay in business,” said Henkes.
Full-service independent restaurants were hit the hardest last year, showing a 2.6% decline in number, down a net 6,400 restaurants. Full-service chains, meanwhile, declined 0.1% in unit count, losing a net of only about 165.
Limited-service independent restaurants declined by 1.8% in 2025, reflecting a net loss of about 3,094 locations.
But limited-service chains, on the other hand, grew in number last year by 1.6%, netting about 3,654 units nationally.
Fundamentally, the number of restaurants overall is growing faster than demand.
Last year, for example, the U.S. population grew by an estimated 0.5%, but the restaurant chain unit count grew by 1.4%. And population growth is expected to continue slowing down, even potentially turning negative by 2030, some predict.
“The industry has to right size,” said Henkes. “There are just too many restaurants chasing too few consumer dollars.”