A popular restaurant chain known for elaborate desserts and celebrity sightings is quietly shrinking its footprint, leaving some customers with fewer nearby locations and others with none at all.
Several restaurants have closed in recent months, cutting off access to a familiar destination for diners and tourists in multiple markets. The closures come as restaurant operators contend with rising costs, changing customer traffic, and other financial pressures.
Founded in 2009, Sugar Factory is an American restaurant chain and candy shop that currently operates more than 20 locations across the U.S., in addition to international restaurants in the Bahamas, the United Arab Emirates, and Bahrain, according to its store locator.
Sugar Factory closes 5 restaurants
Sugar Factory has permanently closed at least five U.S. restaurants since early 2026, with publicly reported reasons varying by location.
The chain has shuttered restaurants in several major markets, including:
Miami, Florida: Closed at 507 Española Way in late summer after 11 years, Secret Miami confirmed.
Chicago, Illinois: Closed at 55 E Grand Avenue in late summer after 10 years, MrSouthLoop reported.
Rosemont, Illinois: Closed at 5445 Park Place in March after 12 years, according to the Daily Herald.
Jacksonville, Florida: Closed at 4910 Big Island Drive in June after three years, FirstCoast News noted.
Detroit, Michigan: Closed at 45 Monroe Street in May after four years, Detroit Free Press reported.
Why Sugar Factory is closing locations
Florida has experienced multiple Sugar Factory closures in recent years, including the Miami Beach restaurants on Lincoln Road and Alton Road, the Bayside Marketplace location in downtown Miami, and the Aventura Mall restaurant. The latest shutdowns in Jacksonville and Miami have further reduced the chain’s presence in the state.
In 2020, entities tied to the Ocean Drive and Lincoln Road restaurants filed for Chapter 11 bankruptcy. In 2023, an investor filed a lawsuit against management.
The Jacksonville restaurant also faced significant regulatory problems before closing. Based on inspection records, the location had numerous health-code violations, as well as temporary shutdowns due to rodent and insect activity, FirstCoast News reported.
The Rosemont restaurant’s shutdown came amid financial difficulties and a legal dispute over its ownership, franchise agreement, and lease, the Daily Herald confirmed.
No reason has been provided for the Chicago location’s closure. Its shutdown leaves Illinois without a Sugar Factory restaurant.
The reason for the Detroit closure has also not been publicly disclosed, leaving Michigan without a Sugar Factory restaurant.
Sugar Factory closes locations nationwide.Denise Truscello / Getty Images
Restaurant closures are changing consumers’ options
Sugar Factory is not the only restaurant operator dealing with a changing business environment. Food-service companies across the U.S. have faced higher labor, food, and operating costs while trying to adapt to changing customer traffic.
Here’s some of my previous coverage of restaurant closures:
Fuzzy’s Tacos & Margs: Closed all of its remaining restaurants in the Houston area in September 2026.
The Cookie Factory: Closed all of its remaining locations in August 2026, ending a 20-year run of physical stores.
Maple Street Biscuit Company: Cracker Barrel sold the brand in July 2026, along with 35 restaurants, and closed its remaining 16 locations after previously shuttering more than a dozen.
The broader restaurant industry continues to face elevated costs. Prices for food away from home increased 3.4% in the 12 months ending August 2026, according to recent U.S. Bureau of Labor Statistics data.
Average hourly earnings of restaurant employees have also increased 41% from pre-pandemic levels, while wholesale food prices have risen 35%, according to the National Restaurant Association.
With those pressures continuing, 33% of restaurant operators said their business was not profitable during the first half of 2026, according to the National Restaurant Association.
Higher costs are also affecting consumers, with restaurant menu prices increasing 0.3% in both July and August 2026, according to the National Restaurant Association.
For customers in markets where Sugar Factory has closed, the shrinking footprint means traveling farther to visit the chain or losing access to it altogether.
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