COLORADO STATE - While Colorado is the proud birthplace of fast-casual giants like Chipotle and Noodles & Company, the state’s home-field advantage isn't enough to stop the "March Purge" of 2026. A combination of soaring labor costs in the Denver Metro area and a statewide crackdown on underperforming units has several major chains cutting their losses this month.
From the Front Range to the Western Slope, here are the three major restaurant chains closing locations in Colorado this March 2026.
1. Noodles & Company: The Home-State Culling
In a move that hits close to home, the Broomfield-based Noodles & Company is entering the first phase of its 2026 "Portfolio Optimization." After closing over 40 stores last year, the chain is closing another 12 to 17 locations this year, with a significant wave of closures hitting Colorado this March.
- The Reason: CEO Joe Christina noted that the brand is aggressively cutting "negative cash flow" sites. In Colorado, where the brand is ubiquitous, many older locations in oversaturated markets (like Denver and Boulder) are being shuttered as leases expire.
- The "Value" Problem: Local diners have increasingly pushed back against the chain's price hikes. With a small bowl of pasta now often priced above $16 in the Denver area, the brand is losing its "quick and affordable" identity, leading to the closure of these legacy locations.
2. Pizza Hut: The "Red Roof" Sunset
As part of the nationwide "Hut Forward" initiative, parent company Yum! Brands is closing approximately 250 underperforming locations in the first half of 2026. Colorado's classic dine-in restaurants are squarely in the crosshairs this month.
- The Strategy: The company is moving away from large-format buildings with dining rooms and salad bars. In towns like Grand Junction, Longmont, and Pueblo, these iconic red-roofed buildings are being traded for tiny, delivery-only hubs.
- The Math: In the 2026 Colorado economy, the cost of heating and staffing a 3,000-square-foot dining room for a business that is now 90% digital no longer makes sense.
3. Denny’s: Finalizing the 150-Store Purge
Following a $620 million buyout by private investors, Denny’s is finishing its massive nationwide reduction. While some Colorado locations vanished in late 2025, the final wave of "surgical closures" is taking place this March.
- The Impact: Underperforming legacy sites—particularly those that struggled to maintain 24/7 operations—are the primary targets. Locations along the I-25 corridor that haven't been modernized are the most likely to see their neon signs go dark for good.
- The Labor Factor: Colorado’s recent victories for tipped employees and rising minimum wages have made the "low-cost diner" model difficult to sustain. The new owners are prioritizing "net positive growth" by cutting these high-overhead, low-traffic sites.
The Colorado "Economic Squeeze"
Why is this hitting Colorado so hard this March?
- The "Turnaround" Season: For Colorado-based Noodles & Company, March is the anniversary of their massive menu overhaul. Locations that didn't see a traffic bump from the new items are being cut now to save the brand’s stock price.
- Hospitality Job Slowdown: Recent economic reports from CU Boulder predict a significant slowdown in leisure and hospitality jobs for 2026. National chains are reacting early by trimming staff and closing doors before the predicted summer slump.
- The "Delivery Only" Era: Denver and Colorado Springs have seen a massive shift toward "third-party delivery." Chains with large footprints are being outcompeted by "ghost kitchens" and smaller, more efficient footprints that don't have to pay high Colorado commercial property taxes on empty dining rooms.
