McDonald's is unexpectedly closing another restaurant

McDonald's is unexpectedly closing another restaurant

Fernanda Tronco

Fri, December 12, 2025 at 12:47 PM EST

5 min read

In this article:

McDonald's is preparing to close yet another restaurant in a matter of days, adding to a growing trend among major fast-food chains that have been rapidly shrinking their footprints in recent months.

Rising costs, evolving consumer habits, and increased competition are putting pressure on beloved brands that were once considered permanent fixtures of American culture.

However, there's more to this unexpected closure than meets the eye, sparking controversy among staff.

McDonald's confirms closure of its Ocean City restaurant

McDonald's (MCD) has confirmed to TheStreet via email that it will permanently close its restaurant at 900 West Avenue in Ocean City, New Jersey, on December 14, 2025.

"After 47 years of serving the Ocean City community, the 900 W Ave. restaurant is closing. I'm deeply thankful to our loyal customers and to our hardworking crew members who show up every day with dedication to serve our community," said McDonald’s Owner/Operator Pat Powers in an emailed statement to TheStreet.

All employees are being offered positions at other McDonald's locations in the area through January 15, 2026, and most have already accepted new roles.

New Jersey has around 250 McDonald's restaurants, all of which are locally owned and operated.

<em>McDonald's confirms the permanent closure of its Ocean City restaurant.</em>Shutterstock — *McDonald's confirms the permanent closure of its Ocean City restaurant.*Shutterstock

McDonald's restaurant closure sparks controversy among staff

Not everyone is satisfied with how the process is being handled. Linda Romain, a three-year employee and manager, has been vocal about the McDonald's Ocean City closure and criticized the short notice provided to staff.

"The McDonald's establishment in Ocean City should be embarrassed about its handling of the closure," wrote Romain on a Facebook post on December 10. "With months of notice, providing only four days' warning to employees and customers is inadequate. The timing, just before Christmas, exacerbates the issue. McDonald's corporate office may want to review the management practices of this location."

Romain told The Press of Atlantic City that she believes the company was aware of the shutdown for months but waited until the last minute to inform its employees. Around 20 people will be affected, she added.

The closure appears to stem primarily from the building where the Ocean City McDonald's is located, which was constructed in 1968. It reportedly requires extensive renovations that are no longer financially viable. According to Romain and another employee, workers were informed that the building is likely to be demolished and replaced.

McDonald's closes another location in Oakland

The Ocean City shutdown follows another recent closure, on November 30, at 1330 Jackson St. in Oakland, California, which impacted around 26 staff members.

Employees at the McDonald's Oakland store claim they were notified just days before Thanksgiving, which led to a worker strike on November 25. However, the WARN notice indicated the closure was filed on October 30, 2025.

"I've made the difficult decision to close my Jackson Street restaurant on November 30. My organization is thankful to the local community for their years of support, and to our hardworking crew members who showed up every day to serve our customers," said McDonald's Owner/Operator Joseph Wong in a statement to The Street.

Why so many fast-food chains are closing locations

The closures come as McDonald's and other fast-food giants face mounting challenges, including slower customer traffic, sales declines, rising food prices, and weaker spending from cost-conscious consumers.

More Restaurant Closures:

Fast-food prices have increased between 39% and 100% from 2014 to 2024, far outpacing the national inflation rate of 33% during the same period, according to Finance Buzz.

McDonald's prices alone have risen by 100% since 2014, with some menu items more than doubling in price over the last decade.

This contributed to a 1% drop in food service traffic for the quarter ending June 2025, according to Circana.

McDonald's bets on modernization and value offers

To combat these trends, McDonald's has expanded value offerings, including the McValue menu, Extra Value Meals, and $5 Meal Deals.

"In response to the decreasing food dollar and the empowered customer, restaurants are turning to innovative business and operating models to grab a greater share of the market," said KPMG Restaurant Segment Leader Paul Fultz and Strategy Leader of Consumer Markets Joel Rampoldt in a study.

The company also launched the Restaurant Experience Team in March, bringing together operations, supply chain, franchising, development, restaurant design, delivery, and Speedee Labs to drive innovation and efficiency.

Additionally, McDonald's is focusing on growing its global footprint by establishing new locations, as well as upgrading existing restaurants and modernizing its equipment and technology.

However, modernization often means closing restaurants that are too deteriorated to renovate, like its Ocean City location.

McDonald's strategy appears to be working:

Extended its digital presence to over 185 million 90-day active users across 60 markets
Loyalty customers generated about $30 billion in systemwide sales in 2024
Global comparable sales increased 3.6% in the third quarter of fiscal 2025, with U.S. comparable sales up 2.4%.

Despite improvement, the company remains cautious.

"We continue to remain cautious about the health of the consumer in the U.S. and our top international markets and believe the pressures will continue well into 2026," said McDonald’s CEO Christopher J. Kempczinski in an earnings call. "It's a foundational expectation of our brand to bring consumers through our doors and keep them coming back."

Fast-food restaurant closures are increasing nationwide

McDonald's is not the only chain closing locations; its competitors are also shrinking their nationwide footprints.

Arby's: At least 14 locations closed across eight states.
Burger King (QSR): Shuttered multiple locations after one of its franchisees filed for Chapter 11 bankruptcy in April.
Wendy's (WEN): Plans to close approximately 300 restaurants nationwide through 2026.
Hardee's:Shuttered stores in at least seven cities in Illinois and has already made several closures in 2025 across various states.
Carl's Jr.:Closed multiple U.S. locations in recent months and more than 20 restaurants in Australia last year. Source: TheStreet

"Consumers are saying, 'We're struggling, or we're beginning to struggle or we’re thinking more carefully about what we spend,'" said Harvard Business School Consultant and Lecturer on Restaurants Michael S. Kaufman. "I don't know that the ability to maintain the large fleets of traditional casual dining restaurants can continue."

This story was originally published by TheStreet on Dec 12, 2025, where it first appeared in the Employment section. Add TheStreet as a Preferred Source by clicking here.

View Comments

Source