Hardee’s, a century-old fast-food chain, has significantly reduced its footprint across Minnesota with multiple confirmed closures in November 2025.
At least six locations have permanently shut down, with community reports suggesting additional closures. The chain once maintained a substantial presence throughout Greater Minnesota but now faces substantially diminished operations in the region.
Mankato Loses Both Hardee’s Locations
Both Hardee’s restaurants in Mankato have permanently closed. The Highway 169/14 location shut down approximately six weeks before mid-November, followed by the Madison Avenue location closing in mid-November 2025.
These closures mark the complete elimination of Hardee’s from Mankato, eliminating longtime fast-food dining options for residents in this key Minnesota market.
Willmar, Marshall, and Fairmont Join Closure List
The Willmar Hardee’s on First Street permanently closed in mid-November, joining shuttered locations in Marshall and Fairmont.
Willmar’s closure particularly impacted residents in rural West Central Minnesota who relied on the location for quick-service dining. These communities lost establishments that had served customers for decades, further limiting dining options in rural areas.
Sleepy Eye and Other Communities Affected
Sleepy Eye’s Hardee’s location ceased operations, and the address was removed from the company’s official website location finder. Community members across Greater Minnesota reported closures in various towns.
These disappearances represent significant losses for rural communities, which often have limited fast-food competition and fewer restaurant alternatives overall.
Remaining Minnesota Locations Provide Limited Options
Despite recent closures, Hardee’s maintains approximately 26 locations across Minnesota, mostly positioned outside the Twin Cities metropolitan areas.
Cities with open restaurants include Faribault, New Ulm, Windom, Bemidji, Brainerd, Fergus Falls, Granite Falls, Hibbing, Hinckley, International Falls, Milaca, Moorhead, and Mora. However, the chain’s presence has been substantially reduced compared to historical levels.
Broader National Closure Pattern
Minnesota closures reflect nationwide struggles for Hardee’s. The chain has shuttered more than 200 U.S. locations over the past decade, including approximately 150 closures over the past three years.
Simultaneous closures have occurred in Iowa and North Dakota, indicating systemic problems affecting the entire franchise system rather than isolated regional issues.
Financial Performance Pressures Mounting
Hardee’s faces significant economic headwinds impacting franchisee profitability. The chain’s average restaurant generates lower revenues compared to its primary competitors.
Hardee’s average unit volumes remain lower than a decade ago, declining 3 percent to below $1.2 million annually. Rising labor costs, food inflation, and thin profit margins pose a threat to the long-term viability of operators.
Major Franchisee Bankruptcy and Closures
Significant franchisee failures have destabilized the system. Summit Restaurant Holdings, which operated over 145 Hardee’s locations across multiple states, filed Chapter 11 bankruptcy in May 2023.
The company cited declining traffic, high shipping and food costs, and decreased labor supply as primary factors. Summit carried $22 million in secured debt at the time of filing.
Ongoing Franchise Conflicts and Disputes
Major franchise disputes have created operational uncertainty. Paradigm Investment Group, operating 76 Hardee’s restaurants across Alabama, Florida, Mississippi, and Tennessee, sued CKE Restaurants in 2025 over mandatory technology fees, third-party delivery requirements, and loyalty program participation.
The franchisee claimed that these new corporate mandates would force bankruptcy, revealing fundamental disagreements between corporate requirements and the franchisee’s financial capabilities.
Lending Institutions Withdraw Financing Support
Traditional lending institutions have effectively ceased financing Hardee’s franchisees. BMO Harris, a major lender to Hardee’s franchisees, announced in 2021 that it was no longer interested in funding Hardee’s, citing the brand as too risky, according to court documents in the Paradigm lawsuit.
This capital constraint prevents existing franchisees from making the necessary expansion, renovation, or operational improvements to remain competitive.
Labor Costs and Operational Pressures
Wage increases and rising labor costs significantly pressured Hardee’s franchisee economics. Inflation in food commodities and maintenance expenses compounds already-thin margins.
Many Minnesota locations struggled to maintain profitability despite long operational histories. The broader fast-food industry’s labor shortages particularly harm chains like Hardee’s, which operate on minimal profit margins and require consistent staffing.
Consumer Preference Shifts Impact Sales
Hardee’s struggles reflect changing consumer dining habits and shifting preferences. Breakfast service, historically central to Hardee’s business model, experienced significant disruption due to pandemic-related changes in work patterns.
Modified commuter patterns initially led to a reduction in breakfast demand. Consumer preference shifts toward alternative fast-food concepts have systematically weakened Hardee’s competitive positioning.
Private Equity Ownership and Strategic Challenges
Roark Capital Group acquired a majority stake in CKE Restaurants, the parent company of Hardee’s, in December 2013.
According to court documents filed in the Paradigm lawsuit, “Since Roark’s purchase of CKE, the Hardee’s brand has steadily deteriorated,” with the brand’s domestic system sales declining 12 percent since 2014. Some franchisees claim corporate management frequently changed strategic directions, creating operational uncertainty.
Community and Employment Impact
Multiple closures eliminate local employment opportunities across Minnesota communities. Former Hardee’s employees are now seeking work at competing chains or in other industries. Small communities, in particular, depend on these establishments for entry-level employment and worker skill development.
The closures reduce local tax bases and negatively impact the economic vitality of rural Minnesota regions.
Uncertain Trajectory for Hardee’s in Minnesota
Hardee’s faces fundamental strategic challenges that closures alone cannot resolve. Without significant operational improvements, cost restructuring, or brand repositioning, the chain is likely to continue reducing its presence in Minnesota.
Remaining locations will need to achieve improved profitability and customer traffic to survive sustained contraction. The chain’s long-term survival depends on successful franchise partnerships, technology adoption, and a meaningful restoration of profitability—currently struggling across all metrics.