Fazoli's, an Italian-American restaurant chain, has closed 50 locations in the last nine months, reducing its total U.S. footprint to 142 restaurants as of August 17. The chain's decline follows a Chapter 11 bankruptcy filing by its parent company, FAT Brands, on January 26, 2026.
FAT Brands, which also owns brands such as Fatburger and Johnny Rockets, filed for bankruptcy protection to address substantial debt and restructure its financial position. This restructuring led to the acquisition of most of the company's restaurant brands, including Fazoli's, by FBG BidCo, an entity composed of some of its previous bondholders. The acquisition was completed through a $595 million credit bid.
Recent closures include four Fazoli's locations, with one notable shutdown in Battle Creek, Michigan, marking the chain's complete exit from West Michigan. Only two Fazoli's remain in the state, located in Jackson and Lansing. A restaurant in Lincoln, Nebraska, closed in mid-July, leaving three active locations in the state. Two Kentucky locations in Lexington and Nicholasville have also ceased operations, though Kentucky remains a strong market for Fazoli's with 26 restaurants still open. The chain, founded in Lexington, Kentucky, in 1988, is known for its inexpensive Italian-American dishes and unlimited garlic breadsticks.
The shrinking presence of Fazoli's is evident across several states. Alabama has no Fazoli's locations remaining, and Indiana has lost 11, leaving 18. California, Mississippi, North Carolina, Oklahoma, South Dakota, and Virginia each have only a single Fazoli's location. Despite these closures, Fazoli's continues to operate more than 140 locations nationwide, offering online ordering and maintaining its rewards program.