Darden Restaurants suddenly closed 15 Bahama Breeze locations in eight U.S. states in May 2025, a 35% decrease in the Caribbean-themed chain’s presence. The closures reflect broad industry challenges in the casual dining space, such as inflationary pressures and evolving customer tastes.
Overview of nationwide closures
Bahama Breeze, owned by Darden Restaurants, closed 15 restaurants on May 15, 2025, in Florida, Illinois, Massachusetts, Michigan, Nevada, New Jersey, New York, and Tennessee. The move brings the chain’s stores down to 28 from 43, with Darden explaining the move as a strategic shift towards “highest-performing restaurants” aimed at enhancing brand sustainability. Transferred or laid-off employees were given alternatives like working for other Darden-owned businesses or severance packages, though layoffs included 73 employees at the Tyngsboro, Massachusetts, location alone.
The closures come on the heels of a 7.7% sales drop in 2024, as tracked by industry watcher Technomic, that reflects the brand’s inability to hold onto price-conscious consumers in the face of higher operating costs. Importantly, the decline tracks with wider trends within the casual dining segment as middle-income families continue to seek value-driven options.
Geographic spread of affected locations
The restaurants that were affected cover large markets, with the most severe impacts felt in Florida—Bahama Breeze’s home state. Five Florida restaurants closed, including the restaurants in Gainesville, Naples, Daytona Beach, Oakland Park, and Sunrise. Other well-known closures are:
- Illinois: The Schaumburg restaurant, which was opened in 2012, serviced Chicago’s northwest suburbs.
- Massachusetts: The Tyngsboro restaurant, which was 13 years old, was the chain’s only New England presence.
- Nevada: The Las Vegas restaurant, situated near the Hughes Center, closed after two decades of service.
- New Jersey: Four locations shuttered, including Paramus, Toms River, Wayne, and Woodbridge.
- Tennessee: The Memphis restaurant, a fixture in the Germantown Parkway retail corridor, ceased operations.
Darden’s move disproportionately damaged suburban and tourist-neighborhood communities where Bahama Breeze’s tropical atmosphere and middle-range prices had previously flourished. The Naples store closure, however, revealed weaknesses in newer markets; that store lasted only 11 months before closing.
Strategic and economic drivers
Darden spun the closures as a cautionary step to “enhance the brand’s overall performance,” but analysts cite structural pressures. Inflation has consumed discretionary incomes, as the University of Michigan’s Consumer Sentiment Index dropped to record lows in early 2025. Bahama Breeze’s $18–$25 average entrée price increasingly isolates price-sensitive diners, who increasingly turn to fast-casual or stay-home dining.
The parent company portfolio strategy also came into play. Darden, the parent of Olive Garden and LongHorn Steakhouse, seems to be consolidating resources behind brands with better sales trends. Importantly, Olive Garden reported a 4.9% decline in revenue in Q3 2025, which reflects industry stress.
Employees reacted with dismay at the surprise closings, with some receiving their terminations by word of mouth posted on doors. In Massachusetts’ Tyngsboro closing, 73 were let go, although Darden vowed to work with employees to shift to other area Olive Garden or Yard House restaurants. Shoppers expressed sadness at loss of community gathering spaces, with Yelp reviewer lamenting the Tyngsboro store’s “salsa and island vibes.”
Local residents can have secondary impacts. The Las Vegas closing, for example, is at an underperforming mall after Gordon Biersch Brewery Restaurant closed in 2024. Likewise, the Memphis closing eliminates a big anchor on the Germantown Parkway strip, which depends on restaurant traffic.
Future outlook for Bahama Breeze
Darden has made no further closure announcements but confirms continued scrutiny of restaurant performance. The remaining 28 restaurants will probably focus on operating effectiveness, and possible menu calibration to counter cost pressures. But the chain’s niche appeal—Caribbean-inspired food at a celebratory price point—is susceptible to new fast-casual entrants creating comparable flavors at lower prices.
Industry experts believe that unless some drastic rebranding or pricing reformulating is done, Bahama Breeze can continue to struggle. As Maeve Webster of Menu Matters noted, “Casual dining is no longer the default choice for families seeking affordability and convenience.”
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