America is losing independent restaurants

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.