Major Dairy Queen Rival Files for Chapter 11 Bankruptcy: Which Locations Face Immediate Closure?
By James H. Sterling
The bankruptcy of M&M Custard LLC is not an isolated event. It marks another casualty in a broader wave of retail bankruptcy filings hitting the fast-casual dining space throughout late 2025 and 2026. Fast-casual dining brands once seemed impervious to recessions. Consumers trading down from casual sit-down chains like Applebee's or Chili's historically cushioned fast-food sales.
That calculation broke down over the last two years. Quick-service ticket prices climbed above $13 to $16 per person across most markets, eroding the perceived value gap between counter service and casual sit-down dining. Middle-income diners pulled back on discretionary restaurant spending, reducing the frequency of spontaneous afternoon ice cream runs and late-night dessert trips.
Labor overhead escalated in tandem. Municipal minimum wage adjustments across several states forced operators to raise base hourly wages to $15, $20. For high-touch concepts like Freddy's, where custard is churned fresh continuously and steakburgers are pressed to order on hot flat-tops, labor cannot be easily automated without sacrificing product texture and service speed. Franchisees absorbed the hit directly, turning once-lucrative stores into cash-draining assets.
James Sterling reports on renewable energy developments, climate policy, ecological conservation, and green tech innovations around the globe.
