Bahama Breeze, Darden Restaurants’ Caribbean-themed casual dining chain, suddenly closed 15 restaurants in the US during May 14–15, 2025. The closures include five Florida restaurants, four New Jersey restaurants, and one restaurant each in Illinois, Massachusetts, Michigan, Nevada, New York, and Tennessee. This move leaves the chain’s presence at 29 locations remaining and follows a 7.7% decline in sales in 2024. Parent company Darden called it a strategic move to focus on high-performing restaurants and get the brand’s financial foundation on firmer footing.
Summary of closures
The closed-down sites cover several states, with Florida having the majority of closures. Florida sites include those situated in Gainesville, Naples, Daytona Beach, Sunrise, and Oakland Park. Outside of Florida, the closures took place in Las Vegas (Nevada), Memphis (Tennessee), and Paramus (New Jersey), respectively. Of note, the Naples restaurant closed after only 11 months open, and the Gainesville restaurant had signs directing visitors to nearby Darden-owned chains such as Olive Garden and LongHorn Steakhouse. At some locations, workers reported showing up for work only to be told of the closures, some of which were kept on a temporary basis to help with cleanup.
Effect on employees and customers
Darden representative Kiara Buckner affirmed that affected employees would be offered jobs at other nearby Darden restaurants or given severance packages. The sudden manner of the closings left many employees in a state of confusion, as indicated by one Gainesville employee describing being informed of the closing when arriving at work. Customers were met with hand-written postings at closed locations, inviting them to dine at sister brands. The closings also interrupted neighborhood meal options, mainly in tourist- and suburban-bias communities where Bahama Breeze was penetrated.
Financial and strategic reason
The closings take place in a financially tough year for Bahama Breeze, whose U.S. sales fell to $246.7 million in 2024 to rank No. 177 on Technomic’s Top 500 Chain Restaurant Report. Darden framed the move as a step towards “strengthen the brand’s overall performance” through redirecting resources to winning sites. It aligns with industry trends as chains consolidate underperforming stores to maximize profitability. Menu Matters president Maeve Webster, a consulting company, likened the strategy to menu optimization and said that retaining underperforming stores detracts from the efficiency of operations.
Wider casual dining industry issues
Bahama Breeze’s woes are echoed across the industry. Casual dining chains with middle-income families as their main customers experience weakening demand due to diminishing disposable incomes from inflation. The University of Michigan’s consumer sentiment reading in May 2025 fell to record lows, further straining mid-range eateries. Weak quarter sales at Olive Garden and LongHorn Steakhouse within Darden itself hint at issues beyond Bahama Breeze.
Closed establishments by state
The 15 closed restaurants are:
- Florida: 3989 Plaza Blvd (Gainesville), 2088 9th St N (Naples), 1786 W International Speedway Blvd (Daytona Beach), 2750 Sawgrass Mills Cir (Sunrise), 3339 N Federal Hwy (Oakland Park).
- Nevada: 375 Hughes Centre Dr (Las Vegas).
- Tennessee: 2830 N Germantown Pkwy (Memphis).
- New Jersey: Four locations in Woodbridge, Toms River, Wayne, and Paramus.
- Other States: Standalone closures in Schaumburg (Illinois), Tyngsborough (Massachusetts), Troy (Michigan), and Lake Grove (New York).
Bahama Breeze’s restructuring illustrates the complexity of the mid-scale casual dining chain in an era of economic uncertainty. Although Darden’s emphasis on profitable units can strengthen the brand, store closings indicate the susceptibility of the chain to consumer trends and inflation. As the chain streamlines, its capacity to maintain customer loyalty and respond to changing market forces will decide its long-term sustainability. Meanwhile, the shuttered locations are a poignant reminder of the travails confronting old-style sit-down restaurants in a shifting business.
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