Romano’s Macaroni Grill doors slammed shut at yet another location, signaling the quiet demise of a once-dominant player in casual Italian dining. From a peak of 219 restaurants nationwide, the chain now clings to just nine sites as of January 2026, a stark 210-location shrinkage that underscores broader shifts in the industry.
Rapid Rise and Peak
Phil Romano launched the chain in Texas in 1988, turning it into a national hit with its vibrant atmosphere and approachable Italian fare. By 2004, it reached 219 outlets, pulling in $711 million in yearly revenue. Families flocked to the spots for personalized service amid lively settings, positioning it as a direct challenger to Olive Garden in the casual dining arena.
The expansion mirrored the 2000s boom in family-oriented eateries, but early signs of trouble emerged by the mid-2010s as competition intensified and operational pressures mounted.
Mounting Financial Pressures
Rising costs battered the sector from 2020 to 2025, forcing major chains to raise menu prices by 42%—far outstripping the 22% general inflation rate, per a FinanceBuzz analysis of 16 operators. Romano’s felt the pinch acutely, with revenue sliding to $230 million by 2017 amid a negative $12 million EBITDA and $23 million in secured debt.
Lease obligations and staffing shortages piled on, culminating in Chapter 11 bankruptcy filing that October. The company restructured and exited protection, but sales kept tumbling, hitting about $107 million by 2020 according to Technomic figures. High prices eroded its appeal to budget-strapped families, who pivoted to faster, cheaper options.
Ownership Instability and Closures
Multiple ownership shifts destabilized the brand: from Brinker International to Golden Gate Capital, Ignite Restaurant Group, RMG Acquisition, and beyond. Franchise disputes and accumulating debt hindered recovery efforts.
Closures ravaged key markets. Texas, once home to numerous Houston and Dallas spots, now holds just one in McAllen. California, Colorado, Pennsylvania, Nevada, and Florida saw widespread shutdowns, rippling through local economies and supplier networks.
Impact on Workers and Rivals
Each closed site typically employed 15-25 staff, displacing an estimated 3,000 to 5,000 workers across states. Many long-term employees faced a tough job market in a sector already strained by turnover.
Competitors fared differently. Olive Garden, backed by Darden Restaurants’ deep pockets, weathered a 3.4% same-store sales dip in 2014 and regained footing. Carrabba’s and Buca di Beppo struggled too—Buca filed for bankruptcy in August 2024—highlighting how perceived value crumbled as prices soared beyond inflation.
Signs of Renewal Amid Uncertainty
Jason Kemp stepped in as CEO in July 2023, pursuing fresh strategies. A April 2025 licensing pact with Surge Brands brought frozen Italian meals to retail shelves, while a new outlet opened in South Jordan, Utah.
Yet with only nine locations left, skepticism lingers. Diners favor fast-casual spots and healthier choices, challenging traditional models. The chain’s survival depends on adapting to these trends—through retail extensions, selective growth, or menu tweaks—amid a casual dining landscape demanding constant evolution. Stakeholders watch closely, as its path could signal wider industry fortunes.
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.