Bonefish Grill, the popular seafood restaurant chain, has recently faced speculation about potential restaurant closures. With over 200 locations across the United States, Bonefish Grill has become a go-to spot for many seafood lovers. However, some reports have suggested that the chain may be shutting down some underperforming restaurants. So what’s really going on with Bonefish Grill? Let’s take a closer look at the facts.
The closure rumors
In mid-2022, several media outlets began reporting that Bonefish Grill was planning to close around 14 locations across the U.S. These reports stemmed from internal communications within Bonefish Grill’s parent company, Bloomin’ Brands. The communications indicated that the company was evaluating underperforming Bonefish Grill restaurants for potential closure.
According to the reports, Bonefish Grill locations in states like Colorado, Illinois, Maryland, Michigan, Missouri, North Carolina, Ohio, and Virginia were on the possible closure list. However, Bonefish Grill declined to confirm which specific locations were being considered for closure. The chain stated that it was too early to share details while the evaluation process was still ongoing.
Prior restaurant closures
While Bonefish Grill has not confirmed the recent reports of 14 closures, the chain has shut down select underperforming locations in the past. For example, between 2015 and 2019, Bonefish Grill closed around 15% of its restaurants, equating to nearly 30 locations.
Some of the prior Bonefish Grill closures included restaurants in California, Colorado, Florida, Georgia, Illinois, Maryland, Michigan, New Jersey, New York, Ohio, Tennessee, and Virginia. The closures were generally based on slower sales and traffic at those specific sites.
So Bonefish Grill has indeed closed weaker performing restaurants over the past several years. The recent reports suggest the chain may be continuing this trend of pruning underperforming locations. However, the company has not yet provided details on which 14 restaurants could potentially shutter.
Statement from Bonefish Grill
While not outright denying the closure plans, Bonefish Grill did release the following statement in response to the recent rumors:
“We are not able to share details around any restaurant closures at this point. We regularly evaluate restaurants as leases come due or as part of our portfolio optimization efforts. While we cannot discuss specifics yet, we will share details as plans are finalized.”
Essentially, the chain acknowledged evaluating its restaurant portfolio but declined to confirm any impending closures. The statement reiterates that Bonefish Grill is likely analyzing locations but simply isn’t ready to announce closure plans.
Why are the closures happening?
If Bonefish Grill does move forward with additional restaurant closures, what’s behind the decision? There are a few key factors driving the closures:
- Financial performance – Lagging sales and profits would make a restaurant location more likely to close.
- Lease terms – Locations with leases ending soon may close rather than renew.
- Increased competition – More competitors in a market can eat into Bonefish’s business.
- Changing diner preferences – Consumer dining habits have shifted, especially post-pandemic.
- Portfolio optimization – Pruning underperformers allows investment in higher-potential locations.
Essentially, Bonefish Grill appears to be evaluating its overall restaurant portfolio and determining which locations are underperforming financially or no longer fit with the company’s goals. Closing weaker stores can improve the chain’s overall profitability and enable investment in more promising markets or newer restaurant prototypes.
Financial difficulties for sit-down dining chains
Bonefish Grill’s situation reflects larger challenges for traditional sit-down dining chains. The entire casual dining sector faces shifting consumer preferences, labor shortages, and margin pressures. However, seafood-focused chains like Bonefish Grill have faced particular struggles, including:
- Seafood costs – The price of fish and seafood ingredients have risen, squeezing profit margins.
- Supply chain issues – Obtaining fresh seafood reliably has been challenging during supply chain disruptions.
- Increased competition – Fast casual seafood chains like Cheddar’s Scratch Kitchen are growing in popularity.
- Delivery difficulties – Seafood does not travel as well for delivery compared to other cuisines.
On top of broader industry headwinds, these seafood-specific factors have created a difficult operating environment for Bonefish Grill. Closing underperforming restaurants in this climate allows the chain to maintain healthier overall performance. Other seafood chains like McCormick & Schmick’s and Joe’s Crab Shack have also shuttered many locations in recent years due to similar pressures.
Potential future closures
Looking ahead, if the rumors prove accurate, Bonefish Grill could potentially close around 14 locations in the coming months. While unconfirmed, states like Colorado, Illinois, Maryland, Michigan, Missouri, North Carolina, Ohio, and Virginia seem to be targeted based on earlier reports.
Beyond this possible immediate round of closures, Bonefish Grill will likely continue evaluating its portfolio on an ongoing basis. More underperforming restaurants could potentially shutter over the next 1-2 years. However, specific details and locations would only be announced as plans are finalized.
Here is a summary of the potential near-term closures:
| State | Potential Closures |
|---|---|
| Colorado | 1-2 locations |
| Illinois | 1-2 locations |
| Maryland | 1-2 locations |
| Michigan | 1-2 locations |
| Missouri | 1 location |
| North Carolina | 1-2 locations |
| Ohio | 2-3 locations |
| Virginia | 1-2 locations |
The actual closure plans may differ from the table above if Bonefish Grill’s evaluation process leads to different decisions. But the States listed appear most likely to see closures based on available information.
Impact on the Bonefish Grill chain
While closing underperforming restaurants may ultimately strengthen Bonefish Grill’s financials, widespread closures could still carry risks. If the chain shutters too many locations, it could potentially raise concerns among consumers about Bonefish’s viability.
However, closing around 14 locations would only represent about 7% of Bonefish Grill’s approximately 210 restaurants. This scale of closures seems unlikely to severely impact perceptions of the brand. For comparison, Bonefish closed nearly 30 locations between 2015 to 2019 and still maintains a strong market presence.
As long as Bonefish Grill proactively communicates that the closures are part of a strategy to enhance the company’s performance, the impact to the overall brand should be minimal. The chain may also be able to relocate staff from closed restaurants to other nearby locations as needed, assisting employees through the transition.
Alternatives to restaurant closures
While Bonefish Grill appears focused on closing underperforming locations, the chain could also consider alternative turnaround strategies, such as:
- Menu innovation – Adding trendy new items or limited-time offers to boost traffic.
- Restaurant remodels – Renovating outdated restaurants to lift sales.
- Expanded delivery – Leveraging delivery services like Uber Eats to access new revenue streams.
- Loyalty program – Implementing a customer loyalty program to encourage repeat visits.
- Improved marketing – Refreshing branding, promotions, and advertising to reach more consumers.
However, these initiatives can be costly. Closing restaurants may allow Bonefish Grill to focus resources on top-performing locations rather than revitalizing struggling ones. The chain may determine closures are the most prudent move financially.
The bottom line
While Bonefish Grill has not yet confirmed specifics, the seafood chain does appear likely to close around 14 underperforming restaurants in the near future. This follows a broader trend of locations closures over the past several years as the chain streamlines its portfolio.
For consumers who enjoy Bonefish Grill, monitoring local restaurant news in states like Colorado, Illinois, Maryland, and Ohio may provide early insight into actual closure plans as they are announced. But with over 200 total restaurants, Bonefish Grill will maintain a strong national presence even with limited closures of underperforming sites.
Going forward, it will be important for Bonefish Grill to communicate transparently about any closures, emphasize new menu offerings at remaining locations, and focus on improving the customer experience. If the chain can delight seafood lovers with great service and food quality, Bonefish should be able to thrive in prime markets across the U.S. despite today’s challenging operating conditions.