The closures follow years of declining customer traffic, falling sales and efforts by owner Cannae Holdings to reduce the chain’s footprint. Some franchise locations may remain open temporarily, but the company-operated network has now shut down.
A Nationwide Closure Follows a Long Decline
Employees at several Middle Tennessee restaurants were informed that locations would close on September 9, according to WKRN. The company later confirmed the closures after its main website became inaccessible and its social media accounts were disabled.
The chain’s remaining corporate restaurants were part of a much smaller operation than in previous years. According to Cannae Holdings’ second-quarter 2026 update, O’Charley’s had 47 locations as of June 30, 2026, including 44 company-owned restaurants and three franchise locations. Earlier reports indicated the brand had operated 52 locations at the start of the year.
The closure comes after a prolonged decline in performance. According to Cannae Holdings, guest traffic at O’Charley’s fell 23.8% in the second quarter of 2026 compared with the same period a year earlier. Comparable restaurant sales declined 13.1% during the quarter and also decreased 13.1% over the 12 months ending June 30, 2026.
Management had previously attempted to stabilise the business by closing weaker-performing restaurants, adjusting menus and focusing on customer service. Four O’Charley’s restaurants were closed during 2026 before the wider shutdown.
The company’s restaurant group, which also includes Ninety Nine Restaurant & Pub, reported revenue of $92 million in the second quarter of 2026, compared with $101.9 million in the same quarter of 2025. The group recorded a net loss of $40 million during the period, according to Cannae Holdings.
From Nashville Beginnings to a Shrinking Footprint
O’Charley’s was founded in 1971 by Charles Watkins on 21st Avenue near Vanderbilt University in Nashville, Tennessee. The restaurant became known for Southern-style menu items, including fresh rolls, chicken tenders and honey mustard dressing.
Watkins sold the business in 1984 to David Wachtel, a former Shoney’s executive who expanded the brand. According to WKRN, the chain had grown to 45 locations by 1993 before expanding further across the Southeast and Midwest. At its peak, O’Charley’s operated nearly 250 restaurants in 2010. The chain later reduced its presence as it faced financial pressure and changing conditions in the casual dining sector.
In 2023, the company announced plans to close 18 restaurants, representing about 17% of its portfolio at the time. According to Nation’s Restaurant News, the decision was linked to inflation pressures, including higher commodity costs, and a strategy focused on preserving cash flow through a smaller group of locations.
Cannae Holdings said in its second-quarter update that it was continuing to explore “strategic alternatives” for its restaurant group as part of a broader portfolio transformation strategy.
Former employees and customers told WKRN that the closures marked the end of a place connected to personal memories and long-term employment experiences. The final status of remaining franchise locations varies, with some expected to close in the weeks following the corporate shutdown. After more than five decades in operation, O’Charley’s has now reached a major transition point, with its corporate restaurant presence coming to an end.
