Texas had more restaurant closures than any other state during the first half of 2026, according to a new industry report.
The report from RestaurantData, a restaurant industry company, estimated that 7,593 restaurants closed across the United States from January to June 2026. Texas accounted for an estimated 1,039 of those closures, which was the highest state total
That comes as no surprise to Kelsey Erickson Streufert, chief public affairs officer of the Texas Restaurant Association. She pointed out that Texas leads by a large margin in restaurant openings. The report emphasized that it’s natural for big markets to generate larger numbers of openings and closures
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“You’re seeing an interesting phenomenon in Texas, where there’s incredible opportunity and an incredible customer base here, especially in D-FW,” Streufert said. “So you see a terrific number of restaurant openings, but it is still a really tough economy, and so you are seeing large numbers of closures along with that.”
New York had the second-highest number of restaurant closures with 543, nearly half the amount in Texas, according to the report. Cities with the most closures were Houston at No. 1 and New York at No. 2. Dallas ranked No. 8, with Fort Worth at No. 11, out of 25 listed cities.
The Dallas-Fort Worth area ranked No. 3 in closures with 240, trailing only the New York and Chicago metro areas
Quick-service restaurants, such as fast-food chains, and sandwich shops accounted for the largest numbers of closures across the country in the first half of 2026. Among closures where alcohol-service information was available, nearly two-thirds were restaurants that did not serve alcohol
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Food costs are up significantly, Streufert said, along with labor and operating costs, putting more pressure on restaurants everywhere. Consumers are stretched thin, too, she said, with the rising costs of gas and grocery bills
“The math of running a restaurant is just really challenging right now,” Streufert said
Many notable restaurants have closed in North Texas this year. A few include Deep Sushi in Deep Ellum, Restaurant Beatrice in Oak Cliff, Rudy’s Chicken in Oak Cliff, Sevy’s Grill on Preston Road and Rye on Greenville Avenue
Streufert said while North Texas is seeing significant growth, which creates lots of opportunity for restaurants, there’s still a lot of competition
Other challenges specific to D-FW are high rent costs and pricey leases, she said. Sevy’s, for example, closed after 30 years in business because it was priced out of its space.
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Related: ‘I don’t want to say goodbye,’ said Sevy’s owner, priced out of Preston Road in Dallas
Many landlords know that if one tenant won’t stay, another would be willing to take their place, Streufert said. “So the rental terms can just be really lopsided.”
So far in July, several restaurants have closed across the region: Trinity Groves’ Beto and Son and Kenny’s East Coast Pizza in Plano, to name a few
When local businesses close, especially the long-running ones, Streufert said, it’s heartbreaking. Right now, she added, this is the new normal
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“But I do think we need to see some relief in the long term to really get back to a healthy business climate for restaurants,” she said
Closures in Texas are likely to continue at this rate for the remainder of the year, Streufert said, but there will also be more openings
