The doors close for the last time at Romano’s Macaroni Grill, marking the end of an era in American casual dining. With a once-thriving national footprint of over 200 locations, this Olive Garden rival has now dwindled to just nine sites.
But what happened? How did a beloved brand, once known for its fun, family-friendly atmosphere, collapse under the weight of rising costs and changing customer habits?
Rivals in the Battlefield
In the realm of casual Italian dining, Olive Garden stood tall, but Romano’s Macaroni Grill once fought for the same loyal diners.
With its trademark fun atmosphere and family-friendly menu, it competed directly for market share with Olive Garden. But despite its aggressive expansion in the 2000s, the chain’s fall came quickly. What was the turning point?
Rise to Fame
Founded in 1988 by Phil Romano in Texas, the Macaroni Grill quickly grew into a national sensation. The chain peaked at 219 restaurants in 2004, generating $711 million in annual revenue, but has since contracted to just 9 operational sites as of January 2026—a 210-location reduction.
Known for its lively ambiance and personalized service, it was a staple of American dining. But by the mid-2010s, cracks began to show. What caused the rapid descent?
The Strain of Rising Costs
As costs climbed in 2020-2025, restaurant chains were forced to hike menu prices by 42%, well above the 22% inflation rate—according to a FinanceBuzz study tracking 16 major chains.
With the economic strain hitting families, many diners began turning to fast-casual alternatives. The high prices left little room for casual dining chains to thrive. Could anyone keep up with the competition?
The End of an Era
Romano’s Macaroni Grill operated 219 restaurants at its 2004 peak but now operates just 9 locations as of January 2026—representing 210 total closures nationwide.
Bankruptcy filings in 2017 revealed $230 million in revenue but negative $12 million EBITDA and $23 million in secured debt, while lease and staffing issues compounded the financial distress. Thousands of restaurant workers lost their jobs as locations closed nationwide.
Texas Heartbreak
Once a Texas favorite, Romano’s Macaroni Grill saw its Texas locations drop dramatically. From multiple Houston and Dallas-area locations to just one remaining site in McAllen, the closures were widespread, leaving only a shadow of the chain’s former presence.
California and Colorado followed suit, contributing to the nationwide collapse. What did this mean for local economies and suppliers?
Workers in the Crossfire
Industry data shows casual dining restaurants typically employ 15-25 staff members per location. With 210 closures spanning Texas, California, Pennsylvania, Nevada, Colorado, Florida, and additional states nationwide, an estimated 3,000-5,000 workers were displaced, facing uncertainty in a competitive job market.
Many had spent years building careers, but now were thrust into an unstable job market. Can casual dining rebound for its workers?
Olive Garden Survives
While Romano’s Macaroni Grill faltered, Olive Garden adapted, leveraging Darden’s extensive resources. Despite same-store sales declines of 3.4% in 2014, Olive Garden rebounded, solidifying its hold in the market.
Other rivals, like Carrabba’s and Buca di Beppo, faced their own struggles—Buca di Beppo filed for bankruptcy in August 2024. What set Olive Garden apart?
Price vs. Value
Industry analysts have documented how price hikes eroded perceived value in casual dining. As dining prices outpaced inflation, chains like Romano’s Macaroni Grill alienated budget-conscious diners.
The shift toward affordable alternatives only intensified, leaving traditional chains grappling with how to pivot.
Plummeting Sales
At its peak in 2004, Romano’s Macaroni Grill generated $711 million in annual revenue. By 2017, revenue had fallen to $230 million with negative $12 million EBITDA. Bankruptcy filings that year revealed severe financial distress, with debts outpacing revenue.
By 2020, revenue had declined further to approximately $107 million according to Technomic data. Could the brand ever recover?
Ownership Turmoil
Romano’s Macaroni Grill’s ownership changed hands several times, from Brinker International to Golden Gate Capital to Ignite Restaurant Group to RMG Acquisition and current leadership, each struggling to bring the chain back to life.
Franchisee disputes and debt accumulation exacerbated the issue. Was this ownership instability the root of its downfall?
Bankruptcy Recovery Plan
In October 2017, the company filed for Chapter 11 bankruptcy protection. While the company emerged from bankruptcy and continued restructuring efforts.
Its ownership eventually shifted again, but as of 2026, the brand is a mere shadow of its former self. Will new leadership help it survive?
New Leadership, New Directions
Jason Kemp took the CEO reins in July 2023, bringing fresh ideas. After signing a licensing deal with Surge Brands in April 2025 for frozen meals, he opened a new location in South Jordan, Utah.
But with the chain’s footprint now small, the big question remains: can he turn around this struggling brand?
Skeptical Future
While nine locations remain, many experts doubt the chain’s future. Consumer habits have shifted toward fast-casual dining, and health-conscious eating is on the rise.
Can the brand reinvent itself, or is it destined to fade into history?
The Final Verdict: Rebirth or Fade Away?
The future of casual dining hinges on adaptability. While Romano’s Macaroni Grill faces an uncertain future, other chains are making moves to stay relevant.
Will the brand recover with its new focus on frozen meals and international expansion? Or has it already reached the end of the road?
Sources:
“Romano’s Macaroni Grill Sheds Most of Its Locations.” Nation’s Restaurant News, 2 Dec 2025.
“Macaroni Grill Files for Chapter 11 Bankruptcy.” TheStreet, 17 Oct 2017.
“New Study Finds 42% Price Hike At Chain Restaurants.” Delish / FinanceBuzz Study, 21 Mar 2025.
“Surge Brands and Romano’s Macaroni Grill Team Up to Bring Authentic Italian Lifestyle to Retail.” Licensing International, 28 Apr 2025.