McDonald’s is preparing to close another restaurant within 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 is more to this unexpected closure than meets the eye, and it has sparked controversy among staff.
McDonald’s ( MCD ) 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 service to the Ocean City community, the 900 W Ave. restaurant is closing. I am deeply grateful to our loyal customers and our hard-working crew members who show up every day with dedication to serve our community,” McDonald’s Owner/Operator Pat Powers said 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 approximately 250 McDonald’s restaurants, all of which are locally owned and operated.
Not everyone is satisfied with the way the process is being handled. Three-year employee and manager Linda Romain has been vocal about the Ocean City McDonald’s closing and criticized the short notice given to staff.
“The McDonald’s location in Ocean City should be embarrassed about its handling of the closure,” Romain wrote on a December 10 Facebook post. “With months of notice, providing only a four-day warning to employees and customers is inadequate. The timing, just before Christmas, exacerbates the issue. McDonald’s may want to review the corporate management practice of this location.”
Romain told The Press of Atlantic City that she believes the company was aware of the closing for months but waited until the last minute to inform its employees. About 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 built in 1968. It is reported to require extensive renovations that are no longer financially viable. According to Romain and another employee, workers were informed that the building would likely be demolished and replaced.
The Ocean City closure follows another recent closure, on November 30, at 1330 Jackson St in Oakland, California, which affected approximately 26 staff members.
Employees at the McDonald’s Oakland store claim they were notified just days before Thanksgiving, which led to a workers’ strike on November 25. However, the WARN notice indicated that the closure was filed on October 30, 2025.
“I have made the difficult decision to close my Jackson Street restaurant on November 30th. My organization is grateful to the local community for their years of support, and to our hardworking crew members who show up every day to serve our customers,” McDonald’s owner/Operator Joseph Wong said in a statement to The Street.
The closings come as McDonald’s and other fast-food giants face mounting challenges, including slower customer traffic, declining sales, rising food prices, and weaker spending by cost-conscious consumers.
More Restaurant Closings:
Fast-food prices rose between 39% and 100% from 2014 to 2024, far outstripping 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 past decade.
This contributed to a 1% drop in food service traffic for the quarter ending June 2025, according to Circana.
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 declining dining dollar and the empowered customer, restaurants are turning to innovative business and operating models to capture greater market share,” KPMG Restaurant Segment Leader Paul Fultz and Consumer Markets Strategy Leader Joel Rampoldt said 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.
In addition, McDonald’s is focusing on growing its global footprint by establishing new locations, as well as improving existing restaurants and modernizing its equipment and technology.
However, modernization often means closing restaurants that are too dilapidated to renovate, such as its Ocean City location.
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It has extended its digital presence to above 185 million 90 day active users across 60 markets
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Customers loyalty generated around $30 billion in system-wide sales in 2024
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Global comparable sales increased 3.6% in the third quarter of fiscal 2025, with comparable US sales up 2.4%.
Despite the improvement, the company remains cautious.
“We continue to remain cautious about consumer health in the United States and our top international markets and believe the pressures will continue well into 2026,” McDonald’s CEO Christopher J. Kempczinski said in an earnings call. “It’s a fundamental expectation of our brand that we get consumers through our doors and keep them coming back.”
McDonald’s isn’t the only chain closing locations; its competitors are also reducing their footprints nationwide.
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Arby’s: At least 14 locations closed in eight states.
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Burger King (QSR): It shuttered multiple locations after one of its franchisees filed for Chapter 11 bankruptcy in April.
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Wendy’s (WEN): It plans to close around 300 restaurants nationwide by 2026.
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Hardee’s:Stores shuttered in at least seven cities in Illinois and has already made several closures in 2025 across several states.
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Carl’s Jr.:In recent months they have closed several locations in the United States and more than 20 restaurants in Australia last year.
Source: TheStreet
“Consumers are saying, ‘We’re struggling, or we’re starting to struggle or we’re thinking more carefully about what we spend,'” said Harvard Business School Restaurant Consultant and Lecturer Michael S. Kaufman. “I don’t know that the ability to maintain the large fleets of traditional casual dining restaurants can continue.”
Related: McDonald’s and Burger King holiday promotions spark big reaction
This story was originally published by TheStreet on December 12, 2025, where it first appeared in the Jobs section. Add TheStreet as a Preferred Source by clicking here.