These American Restaurants Are Failing to Attract Customers

With declining sales and customers opting for delivery, many restaurants are hitting the skids. When customers do sit down to a meal, many prefer local spots. Some chains, like Red Lobster, are winning the fight, while the following American restaurants are on the brink of collapse. One once-popular burger chain is closing nearly 200 locations (on page 10).

1. Papa John’s

Papa John's Pizza
Pizza employee at Papa John’s. | Mike Moore/Getty Images for Papa John’s
  • Year founded: 1984

In 2017, Papa John’s CEO John Schnatter blamed NFL protests for a drop in business. Then, a 2018 Forbes article revealed he’d used the N-word in a conference call. Schnatter gave up his CEO position after the first incident; the second cost him his chairman role. Soon after, reports surfaced of a toxic company culture where sexual harassment was common. Same-store sales have plunged, according to Restaurant Business Insider.

Next: A food poisoning outbreak sickened this burrito chain.

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