In a year of sweeping changes across the American dining landscape, Freddy’s Frozen Custard & Steakburgers has officially closed its final location in the Chicago, Illinois area—signaling the end of an era for local fans and reflecting broader industry contraction.
Freddy’s Chicago, Illinois Closure: End of the Line
Freddy’s Chicago, Illinois, footprint has vanished following the October 2025 closure of its Crystal Lake restaurant. The location, which opened in 2021, was the last Freddy’s in the region after earlier shutdowns in Frankfort, Glendale Heights, Orland Park, Lake Zurich, and Romeoville.
Founded in Kansas in 2002 by Bill and Randy Simon and Scott Redler, Freddy’s expanded rapidly nationwide. Despite the retreat from Chicago, the brand recently celebrated its 400th location in Overland Park, Kansas.
While Freddy’s has not publicly explained the closures in Illinois, industry watchers point to a September leadership change. Rhône Group, a New York-based private-equity firm, acquired Freddy’s for around $700 million, following a previous acquisition by Thompson Street Capital Partners in 2021. The company also launched a Name, Image, and Likeness (NIL) partnership with college athletes across five states, suggesting a strategic shift in branding.
Wahlburgers and Others Join the Downsizing Trend
Freddy’s isn’t alone. Wahlburgers, the celebrity-owned chain founded by Mark, Donnie, and Paul Wahlberg, confirmed the closure of 79 locations earlier this year. CEO Randy Sharpe clarified that these were food court kiosks, not full-service restaurants, and emphasized a pivot toward standalone dining.
“We are growing restaurants. We’re not going to be in the grocery business,” Sharpe said, referencing the end of Wahlburgers’ partnership with Hy-Vee.
2025 Restaurant Closures: A Nationwide Trend
Several major chains have announced closures in 2025:
| Chain | Projected Closures | Notes |
|---|---|---|
| Denny’s | Up to 150 | Many locations are deemed unprofitable |
| Red Lobster | Over 100 | Restructuring under new CEO Damola Adamolekun |
| TGI Friday’s | 30 (April alone) | Bankruptcy-related downsizing |
| Applebee’s | 20–35 | Strategic shift toward dual-branded IHOP-Applebee’s |
| Noodles & Company | 17–21 | Recovery efforts after a challenging 2024 |