Crisis Deepens for Major Fried Chicken Chain as Locations Close Due to Failed Health Inspections

Posted on: 05/13/2026

Popeyes

The fast-food industry in the United States is a force to be reckoned with, and fried chicken has emerged as a standout performer. While the overall fast-food sector saw a 1% decline in 2024 compared to the previous year, fried chicken restaurants enjoyed a 3% growth in 2025, according to market research firm Circana.

However, not everything is going well for every player in this segment. Popeyes Louisiana Kitchen, a well-known fried chicken chain, has been forced to close several locations due to poor performance, with some franchises even filing for bankruptcy. The restaurant on Brewerton Road in Cicero, New York, permanently closed its doors on April 30, less than four years after opening in September 2022.

The franchisee, Liberty Restaurants Holdings, which had plans to open 30 Popeyes locations across upstate New York, posted a notice on the window of the Cicero store: “Thank you, Cicero. We appreciate your support over the years. This location will permanently close on April 30, 2026,” as reported by Syracuse.com.

This was the second Popeyes closure in the Cicero area within just 60 days. The first was a location in Oswego, New York, which closed without warning on March 15, giving employees only 24 hours’ notice, according to former manager Mike Ward, who spoke with WSYR.

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While the exact reason for the Cicero closure was not disclosed, records show the location had a series of failed health inspections starting in late 2022, shortly after it opened. Liberty Restaurants Holdings did not file for bankruptcy, but other Popeyes franchisees faced even more severe financial difficulties and were forced to seek protection under Chapter 11 of the U.S. Bankruptcy Code. This legal measure allows companies to reorganize under court supervision, avoiding immediate liquidation.

One such case is Sailormen Inc., a Popeyes franchisee that encountered unfavorable circumstances. The company filed for Chapter 11 bankruptcy on January 16, 2026, and subsequently closed 20 locations, terminating its lease agreements.

Despite the growth of the fried chicken segment, these closures highlight the challenges facing some operators in the fast-food industry, particularly those grappling with health inspection failures and financial strain.