Bahama Breeze, the Caribbean-themed restaurant chain that has been a fixture in the casual dining scene for nearly three decades, is officially shutting down. Parent company Darden Restaurants, which also operates Olive Garden, LongHorn Steakhouse, and Ruth's Chris, confirmed the decision on Tuesday, 3rd February 2026.
The End of an Era for Bahama Breeze
This announcement marks the final chapter for Bahama Breeze, following a series of closures last year. In June 2025, Darden shuttered approximately one-third of its Bahama Breeze locations, indicating the brand was struggling to find its footing in a challenging market.
Closures and Rebranding Details
Darden is closing 14 Bahama Breeze restaurants and converting another 14 to different brands within its portfolio. The stores scheduled for closure are located in Virginia, Delaware, West Virginia, Michigan, Pennsylvania, New Jersey, and five locations in Florida.
The 14 locations being rebranded include 10 in Florida and one each in North Carolina, South Carolina, Georgia, and Virginia. Darden stated in an official release: "The conversion locations are great sites that will benefit several of the brands in its portfolio."
Impact on Employees and Final Operating Day
The company has emphasised its commitment to supporting affected team members during this transition. "Going forward, the primary focus will continue to be on supporting team members, including placing as many as possible in roles within the Darden portfolio," the company stated.
Bahama Breeze's final day of operation will be 5th April 2026, bringing to a close a 30-year run for the tropical-themed dining chain.
Financial Implications and Market Context
Darden Restaurants does not expect the closure of Bahama Breeze to have "a material impact on its financial results." This confidence stems from the strong performance of other brands in their portfolio, particularly Olive Garden and LongHorn Steakhouse, both of which reported robust same-store sales growth in the last quarter.
Challenges in the Casual Dining Sector
The closure of Bahama Breeze reflects broader challenges facing the casual dining industry. Inflation and the ongoing affordability crisis have made eating out more of a luxury for many consumers, while the rising popularity of fast-casual restaurants has eroded the traditional customer base for chains like those in Darden's portfolio.
Bahama Breeze is not alone in facing difficulties. Last year saw multiple restaurant chains struggle:
- Bravo Brio, an Italian chain, filed for bankruptcy for the second time and closed several locations
- Outback Steakhouse closed multiple locations ahead of a planned 2026 brand overhaul
- Hooters, Bar Louie, and Razzoo's Cajun Cafe all shut down stores and filed for bankruptcy in 2025
Despite these challenges across the sector, Darden appears to be strategically consolidating its portfolio, focusing resources on brands with stronger growth potential while repurposing valuable restaurant locations that no longer fit the Bahama Breeze concept.
