The chain restaurant world had a rough year. A new report shows that sales at the biggest chains slowed again in 2025 as diners cut back on eating out, but some sectors — coffee, beverages and snacks, and chicken — did well. The news includes KFC’s new prototype, Starbucks closing stores, and Burger King’s rethink on AI drive-thrus.
Technomic’s Top 500 Report
The report, called the Technomic Top 500, shows that chain restaurant sales slowed across the board as consumers trimmed dining out. But certain areas stood out: coffee, beverages and snacks, and chicken.
KFC is part of that chicken story. The brand debuted its new Open House prototype this week outside of Dallas. The space was created to speed up KFC’s U.S. comeback under President Catherine Tan-Gillespie.
KFC’s Open House Prototype
KFC says the brand is “loved but latent.” The prototype serves as a learning lab with a modern design, flexible seating, breakfast, new drinks like boba refreshers and Krunch shakes, catering, and a swag bar. There are also plenty of sauces for customizing meals and snacks in a “Go Bucket,” along with signature bone-in chicken, tenders, and sandwiches.
The prototype is meant to gather data on what works. The design is meant to be flexible rather than fixed.
Starbucks Closes 250 Stores
Starbucks is closing more locations. The coffee shop giant said on Thursday that it is closing 250 stores in North America, or about 1% of its units. The company said in a note that these locations are underperforming.
It is the latest in a series of closures dating back to last year. The company closed around 600 stores in 2025.
Burger King’s AI Drive-Thru Shift
Burger King is adjusting its drive-thru AI plans. During a panel at FSTEC Wednesday, VP of brand technologies Chakri Somisetti said the chain found that some customers do not like ordering from a robot.
So the company is working on a way to make it easier for customers to switch to a human order taker if they prefer.
The Year’s Chain News
The report covers the biggest chain restaurants.
| Report | |
|---|---|
| Technomic Top 500 | Chain restaurant sales |
| KFC | Open House prototype, comeback strategy |
| Starbucks | Store closures |
| Burger King | Drive-thru AI shift |
Sectors That Thrived
The report found that certain sectors did well even as the broader picture darkened. Coffee, beverages and snacks, and chicken were among the bright spots.
KFC’s Open House prototype has a lot of the same elements as the bright sectors. The brand is betting that a modern design and fresh drinks like boba refreshers will draw more customers.
The Pattern of Closures
Starbucks is closing a smaller number of stores this time. It is closing 250 locations, or about 1% of its units. That is a smaller figure than the 600 stores it closed in 2025.
The company’s note said the stores are underperforming.
Our View
The Technomic Top 500 report shows a chain restaurant industry that is still working through a tough period. Sales slowed again in 2025, and the report’s findings point to a set of companies that are testing new formats, closing stores, and adjusting their technology.
KFC’s Open House prototype is a sign of how brands are trying to learn from customers. It is a learning lab with a modern design, flexible seating, breakfast, new drinks like boba refreshers and Krunch shakes, catering, and a swag bar.
Starbucks’s closures are a sign of how brands are cutting losses. The company is closing 250 stores, or about 1% of its units, and that follows last year’s 600 closures. The note said the locations are underperforming.
Burger King’s shift on AI shows that even big chains are still figuring out the customer experience. The company is working on a way to let customers switch to a human order taker if they prefer.
The report’s findings are a reminder that the chain restaurant world is still working through a tough period.
The industry is still working through a rough patch.
Source material: “Starbucks closures, Burger King AI, Olive Garden sales,” Nation's Restaurant News.
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