A dessert-only chain is quietly shrinking its footprint, closing multiple locations across several U.S. markets and exiting some regions entirely.The closures underscore a broader challenge facing specialty restaurant brands. After years of rapid expansion driven by growing demand for premium desserts and international concepts, many operators are finding it harder to sustain growth as consumers become more selective with discretionary spending. Rising labor, food, and occupancy costs have further pressured franchise operators, prompting some niche concepts to reassess where stores can remain profitable.One company now navigating those headwinds is Beard Papa’s, a Japan-based dessert chain founded in Osaka in 1999. Known for its customizable cream puffs, the brand has expanded to more than 500 locations worldwide, with stores across Japan, Singapore, Australia, China, Vietnam, Indonesia, Canada, and the U.S.Beard Papa’s closes multiple locations Beard Papa’s has closed several locations between late 2025 and July 2026, including stores in major U.S. markets and its only shop in Guam.Recent Beard Papa’s closures include:Clovis, California: Closed July 12 at 960 Herndon Ave, Suite 106Las Vegas, Nevada: Closed its only location on May 21, 2026, at 7325 S. Rainbow Blvd., Suite 110Concord, California: Closed February 16, 2026, at 2151 Salvio St FNew York, New York: Closed in early 2026, at 2167 BroadwayNew York, New York: Closed in early 2026, at 11 St Marks Pl, Fl 2, Suite E Salt Lake City, Utah: Closed in late 2025 at 905 E 2100 SSouth Jordan, Utah: Closed in late 2025 at 4690 W Boardwalk Rd A101Guam: Closed its only location in 2026The shutdowns span both established and new markets, suggesting the company’s recent contraction extends beyond a single underperforming region.Despite the recent closures, Beard Papa’s continues to operate 32 U.S. locations across Arizona, California, Georgia, Massachusetts, Minnesota, New York, North Carolina, Oregon, Pennsylvania, Texas, and Washington, according to the company’s store locator.
Beard Papa’s closes locations worldwide.Glenn Koenig/Los Angeles Times via Getty Images
Why Beard Papa’s is closing locationsBeard Papa’s has not publicly disclosed a specific reason for the recent closures. However, because the brand operates primarily through franchising, individual store shutdowns are typically driven by local operating conditions, franchise economics, lease negotiations, and owner-level business decisions rather than a companywide restructuring.Franchising allows brands to expand rapidly while reducing corporate operating costs, but maintaining consistent performance across independently owned locations becomes more challenging as markets mature. Franchisees must continually balance customer demand, rising expenses, lease obligations, and profitability when deciding whether to renew or exit a location.The pressures affecting Beard Papa’s also reflect broader challenges across the specialty restaurant industry. Unlike everyday dining concepts, dessert-focused brands depend heavily on discretionary purchases and impulse visits, making them more vulnerable when consumers cut back on nonessential spending.Competition has also intensified as more specialty dessert brands compete for the same customer occasions. When multiple concepts offer similar products for relatively infrequent purchases, sustaining long-term store growth becomes increasingly difficult.Rising costs continue to pressure restaurant operatorsRestaurant operators across the industry continue to face elevated costs. The National Restaurant Association estimates that food and labor expenses have each increased roughly 35% over the past five years, placing additional pressure on restaurant profit margins.Commercial real estate has become another significant challenge. According to Q1 2026 data from CoStar Group, U.S. business rents have risen at a compound annual rate of between 5.5% and 8.8% since 2019, making store-level economics more difficult for many restaurants.”The restaurant industry is battling for its share of shrinking consumer wallets,” said The New York Times food industry writer and expert Julie Creswell. “Last year, most chains raised menu prices, and lower-income consumers were the first to cut back on eating out.”Consumers also continue to face higher menu prices. According to the U.S. Bureau of Labor Statistics, prices for food away from home increased 3.4% in the 12 months ending June 2026, contributing to higher dining costs across the restaurant industry.For dessert-focused brands, long-term success often comes down to visit frequency. While premium treats remain popular, fewer customer visits combined with rising operating costs can make maintaining large store networks increasingly difficult.Here’s some of my previous coverage of restaurant closures:Popular beverage chain closing multiple locations nationwideBurger chain closes most locations after partner’s collapsePizza chain closing up to 50 locations after years of declines”How often people realistically want dessert is what ultimately determines which chains endure and which burn out,” said Business Insider Senior Reporter and industry expert Katherine Ortiz. “When too many concepts flood the marketoffering the same product for the same narrow occasion, the model goes stale, no matter how beloved the brand once was.”While Beard Papa’s continues to maintain a nationwide presence, its recent closures illustrate the growing pressures facing specialty dessert chains as higher operating costs, shifting consumer spending habits, and an increasingly competitive market reshape the industry’s expansion plans.Related: Popular breakfast chain sold, 16 locations shut down