Whataburger announced in mid-December 2025 the permanent closure of eight of its restaurants across three Southern states, with the closures taking effect on December 15, 2025.
This retreat, which is expected to eliminate an estimated $24 million in annual revenue and put approximately 200 jobs at risk, impacts locations that had only opened between March and July 2024, just 18 months prior.
The closures mark a significant pullback for Whataburger, particularly after its ambitious entry into the Atlanta market in November 2022. The move reflects the challenges of expanding into college-town markets as the chain adjusts to operational realities in the Southeast.
Rapid Retrenchment
Whataburger closes units in key college markets, resulting in an estimated $24 million in annual revenue loss. These closures represent less than 1% of its footprint but signal risks in hyper-speed expansion.
Of the eight locations shuttering, six opened in 2024 alone, suggesting rapid overextension in competitive markets.
Franchisees bear significant losses while the chain eyes long-term dominance. Is this a strategic reset or a warning of deeper Southeast struggles?
Texas Roots
Founded in Corpus Christi on August 8, 1950, Whataburger has grown into a Texas icon, serving massive burgers around the clock.
It entered Georgia in November 2022 via a Kennesaw location, then rapidly added more than three dozen restaurants across the state.
Now operating in 17 states with over 1,100 locations, the San Antonio-based chain expanded aggressively through franchise partnerships. Rapid market entry fueled growth projections, but the expansion into new markets tested operational and logistical capacity.
Expansion Pressures
The Southeast blitz added more than three dozen Georgia stores since November 2022, but underperformers emerged amid intense competition from established regional and national chains.
Customer reviews noted slow service in some locations, sparse traffic during off-peak hours, and mismatches in expectations outside Texas markets.
In-N-Out’s Tennessee debut in December 2025 adds competitive pressure. Rapid openings strain operational consistency—service quality and sustained traffic remain critical concerns.
Eight Closures Confirmed
Whataburger confirmed permanent closures of eight restaurants across Georgia, Alabama, and Tennessee by December 15, 2025, at 11:59 PM (with the Athens, Georgia, location closing December 14 at midnight).
The closures include: Georgia (2): Athens (700 US-29, opened June 17, 2024) and Dahlonega (254 Riley Rd, opened June 3, 2024), Alabama (2): Auburn (101 N. College St, opened January 3, 2022) and Tuscaloosa (1130 University Blvd, opened August 14, 2023)
Tennessee (4): Clarksville (791 N. 2nd St, opened April 15, 2024), Clarksville (1602 Haynes St, opened March 4, 2024), Murfreesboro (1924 Memorial Blvd, opened July 22, 2024), and Mt. Juliet (11190 Lebanon Rd, opened July 8, 2024)
Six of the eight locations opened in 2024, indicating failure within their first 18 months of operation.
Southern Fallout
Georgia drops to 37 locations post-closures, from 39. Alabama loses college-town staples near Auburn University and the University of Alabama. Tennessee sees four of 24 Middle Tennessee units close, eliminating two locations in Clarksville alone.
The $24 million annual revenue impact represents typical fast-casual unit sales of approximately $2–3 million per location. Approximately 120–200 jobs are expected to be eliminated at the closing sites.
Affected workers are offered transfers to nearby Whataburger locations. Local economies in college towns feel the pinch of rapid business reversals.
Worker Impacts
Approximately 200 positions are at risk of elimination as franchisees absorb substantial losses from rapid reversals. “Good luck to the employees in securing a new job,” one person commented in ToNeTo Atlanta’s reader comments.
Whataburger offers transfers to nearby locations, but college-town timing disrupts seasonal staff and creates holiday-season displacement. The human cost mounts in communities that count on these fresh employment opportunities in smaller markets.
Competitor Surge
In-N-Out Burger opened three Tennessee locations on December 8–10, 2025, including Murfreesboro (December 12), Lebanon, and Antioch. Praised for value and operational efficiency, In-N-Out draws significant crowds while Whataburger retreats from the region.
Other competitors, such as Raising Cane’s and Chipotle, thrive with company-owned models. Meanwhile, some Whataburger locations have faced customer service complaints, as documented in online reviews, particularly regarding wait times and order accuracy in newer markets.
Market Shifts
Fast-food chains face intensifying competitive and operational pressures; Whataburger’s pullback echoes broader industry caution among aggressive expanders.
The Tuscaloosa location—Whataburger’s first “digital-forward” prototype featuring self-service kiosks and food lockers—closes after just 16 months, suggesting that operational innovation alone cannot overcome market saturation.
The Auburn location, which lacked a drive-thru despite proximity to campus, also failed. Macro trends hit aggressive regional expanders hard when execution falters.
Revenue Hit
Closures result in an estimated $24 million in annual revenue loss, calculated based on typical unit sales of $2–3 million per location. Notably, the Dahlonega location boasted a 4.1-star Google rating with over 500 reviews—the highest rating among all eight closing sites—yet still underperformed financially.
This disconnect suggests that customer satisfaction alone does not guarantee profitability in crowded markets. Strategic market reassessment, rather than customer ratings, drove the decision to close.
Franchisee Strain
Franchisees like Made To Order Holdings operate underperforming locations in Roswell and Stockbridge, Georgia, where customer comments blast slow service, extended wait times, and inconsistent quality.
Internal frustration builds as rapid openings outpace training and operational standards. Some franchisees face significant capital losses on failed locations, raising questions about the future viability of franchises in the region.
Strategic Review
Following its 2019 acquisition by BDT Capital Partners, Whataburger accelerated aggressive growth into Colorado, Nevada, and the Southeast. Routine business reviews now prompt targeted site closures to optimize portfolio performance.
A Whataburger spokesperson stated, “As a growing brand expanding into new markets, we regularly conduct a business review of our locations to maximize opportunities for growth and keep Whataburger strong in the communities we serve.
In a few cases, that means closing restaurants.” The statement indicates that ownership prioritizes portfolio optimization and long-term positioning over maintaining all expansion sites.
Growth Pivot
Despite closures, Whataburger plans to open more than 40 new locations in the Southeast in 2026, targeting 50 restaurants in Georgia by 2030. There is also a planned national expansion of 70+ locations.
Recent Georgia openings include Duluth (opened September 22, 2025) and East Cobb (opened December 1, 2025), with Johns Creek under construction.
The chain frames closures as strategic portfolio optimization. “Closing restaurants to maximize growth,” the spokesperson reiterated, suggesting the company believes selective exits sharpen focus and improve long-term returns on remaining and future locations.
Skeptic Voices
Experts identify a pattern among regional favorites that overextend during national expansion attempts, citing historical examples such as Varsity and El Pollo Loco.
“Franchisees rush to open too many locations without adequate operational infrastructure,” according to industry observers.
Service improvements and stronger franchisee vetting appear necessary to sustain growth. Market uncertainty persists for regional chains attempting to replicate the success of Texas or in-state businesses in unfamiliar competitive landscapes.
Future Footprint
With over 1,100 stores nationwide and more than 40 new locations planned for 2026, Whataburger bets that strategic closures will sharpen its competitive edge and improve unit-level performance.
The company targets 50 Georgia locations by 2030—requiring selective growth in proven markets. Can Whataburger conquer Southeast loyalty beyond its Texas stronghold, or will competitors like In-N-Out redefine the regional burger wars?
The answer hinges on execution quality and realistic market assessment in the quarters ahead.
Sources:
ToNeTo Atlanta, December 2025
Houston Chronicle (Chron.com), December 2025
MySanAntonio, December 2025
Knox News, December 2025
Whataburger official company statements and history