A struggling bar and restaurant chain has abruptly closed all its corporate-operated locations, with the remaining franchised restaurants expected to shut down in the coming weeks.
The sudden closures mark the latest development in a years-long decline for the chain, which has steadily reduced its restaurant footprint while attempting to improve its financial performance.
Founded in 1971 in Nashville, Tennessee, O’Charley’s is a casual dining restaurant and bar chain known for its Southern comfort food. The brand is owned by Cannae Holdings (CNNE) and once operated locations across 13 states.
O’Charley’s closes all corporate restaurants
O’Charley’s closed all company-owned restaurants nationwide on September 9, 2026, ending its corporate-operated presence across multiple states after 55 years in business.
The O’Charley’s website is no longer accessible, while the chain’s social media accounts also appear to have been disabled.
At its peak in 2010, O’Charley’s operated nearly 250 restaurants. By mid-2026, the chain’s reported footprint had fallen to 47 locations.
Corporate representatives confirmed the closures on the morning of September 10, WKRN reported. However, some franchised restaurants are expected to remain open beyond the September 9 closure date for company-owned locations.
An employee at a franchised O’Charley’s in Niles, Ohio, told Nation’s Restaurant News that the restaurant planned to remain open “as long as possible” and could close permanently between September 27 and October 4.
An employee at another franchise location in Chester, Virginia, told the publication that the restaurant did not have an official closing date.
Two additional locations in Knoxville and Alcoa, Tennessee, were also still open and have not been given instructions to close, Knoxville News Sentinel reported.
Why O’Charley’s is closing its restaurants
O’Charley’s has not publicly disclosed a specific reason for the latest wave of closures. However, the shutdown follows several years of efforts to reduce the chain’s footprint amid financial and operational challenges.
O’Charley’s had been steadily closing restaurants since 2016. In 2023, the company announced plans to shrink its portfolio by 17%, shuttering 18 restaurants in response to economic pressures, Nation’s Restaurant News reported.
At the time, the strategy focused on closing underperforming locations, preserving cash flow, and moving toward a more asset-light business model to improve long-term profitability.
“This was about the long-term health of the O’Charley’s brand,” O’Charley’s CEO Craig Barber said at the time.
“If the four-wall economics don’t work, then we can’t continue to keep stores open that aren’t producing cash flow.”
The strategy, however, did not reverse the chain’s declining sales trajectory.
O’Charley’s same-store sales fell 13.1% during the second quarter of fiscal 2026, according to the company’s earnings report.
Management said its efforts during the quarter included stabilizing same-store sales through menu engineering, improving the customer experience, and closing underperforming restaurants. Four O’Charley’s locations were shut down during the quarter.
The latest closures represent a significant contraction for a restaurant chain that once had a much larger national presence. While some franchise locations may remain open temporarily, the shutdown of all corporate-operated restaurants marks another major step in the brand’s long-running retreat from its former footprint.
With its corporate locations now closed and remaining franchise restaurants also expected to follow, the O’Charley’s brand is nearing the end of a more than five-decade run.
Restaurant chains shutting down all locations
O’Charley’s is not the only restaurant chain closing its remaining locations. Several chains have shut down restaurants in 2026 after facing financial challenges, restructuring efforts, or other pressures.
Here’s some of my previous coverage of restaurant closures:
- On the Border Cantina Mexican Grill & Cantina: Closed all remaining locations in June.
- Gringos Locos: Closed all of its Orlando-area restaurants in August.
- Fuzzy’s: Closed all its remaining restaurants in the Houston area in September.
Related: Mexican restaurant chain closes all locations in major market
