Closure Strategy: Bahama Breeze Shutters 15 Locations Amid Decline in Consumer Spending

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ICARO Media Group
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20/05/2025 21h41

**Bahama Breeze Shutters 15 Locations Amid Decline in Consumer Spending**

Facing a dip in consumer confidence and spending, Bahama Breeze has made the surprising decision to close 15 of its restaurants, accounting for more than a third of its entire chain. The closures affect locations nationwide, with notable shutterings in New Jersey and Long Island. This strategic move aims to boost the brand’s overall performance by concentrating efforts on its most successful establishments, according to Darden Restaurants, the chain’s owner.

Darden Restaurants has assured that efforts are underway to re-employ affected workers at nearby Darden-owned venues. For those unable to secure new positions within the company, severance packages will be provided. The decision comes as Bahama Breeze faces considerable financial pressure, having seen a 7.7% decline in sales last year as per data from Technomic, a restaurant research firm. Post-closures, the chain now operates with just 29 remaining locations.

This trend of closures isn’t unique to Bahama Breeze; other casual dining chains are also feeling the pinch. Red Robin revealed in March that it might close up to 70 underperforming locations, following a substantial $32.4 million loss. Last October, TGI Fridays shuttered 12 restaurants in the U.S. within a single month, three of which were in New York state, and another 35 internationally. Similarly, Red Lobster closed 50 of its venues in May, including over a dozen in New York and New Jersey.

These closures reflect broader economic concerns as consumer sentiment hit its second-lowest mark on record in April, driven by fears related to President Trump's trade policies. Inflation worries have escalated, with year-ahead inflation expectations jumping from 6.5% to 7.3%. Retail spending, which saw an uptick in March as consumers anticipated impending tariffs, stalled in April, further illustrating the challenging environment for the casual dining sector.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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