Jun 9, 2025
Those looking for a quick bite of McDonald’s in the heart of downtown Chicago might have to look elsewhere.
Six locations in close proximity within and around the city's iconic downtown neighborhood — the Loop — have closed recently, according to CBS News Chicago. Now, there are only four left in the central business district. And they’re not the only commercial spaces to shut down.
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However, Michael Edwards, President and CEO of the Chicago Loop Alliance, doesn’t view the closures as a bad omen. In fact, he believes the area is seeing an economic rebound.
“First quarter of this year, a million people came down,” Edwards told the local broadcaster in a story published May 19, “$280 million in economic impact.”
He added: “Every day, there’s something new and improved.”
Downtown foot traffic on weekends is higher than pre-pandemic levels, reports CBS News Chicago. So, why are some businesses not seeing the economic benefits of staying in the area?
What's going on in the Loop
High rent may be a hindrance for local businesses. Many available commercial spaces in the Loop currently rent between $23 and $50 per square foot each year, LoopNet shows, which can translate into paying hundreds of thousands of dollars annually.
Sprinkle in additional costs like renovations, utilities, hiring staff and other overhead expenses, and it becomes a pricey venture to run a business in the Loop. Edwards says the area tends to attract large national retailers, but he notes many seem to be downsizing.
When asked about the closures, CBS News Chicago says McDonald’s didn’t give a definitive reason why the restaurants shut down. An “outside source” told the news outlet one of the locations may have closed because of crime and tensions with homeless people.
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According to the National Restaurant Association, food and labor costs for the average restaurant have risen 35% in the last five years. Rising costs are eating into pre-tax margins, which is around 5% for a typical restaurant.
But the price of doing business in the Loop isn’t scaring off everybody. A new Mexican restaurant, Momento, has opened its doors, per CBS News Chicago, and Amorino, a gelato joint, is set to open a second location in the area. All are owned by Christopher Roldan, who expressed a lot of faith in the district.
“From all of the 300 [Amorino] locations, 19 countries, this one in Chicago is the number one in sales,” Roldan told the broadcaster. “We have proof that this area works.”
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Does consumer sentiment have to do with the McD's closings?
A survey published by LendingTree last year found that while 3-in-4 Americans would typically munch on fast food at least once a week, 62% reported eating it less often due to rising prices. In fact, 78% of survey respondents viewed fast food as a luxury because it has become more expensive. Half also said they view it as a luxury because they’re struggling financially.
Same-store sales at McDonald’s locations in the U.S. fell around 3.6% in the first quarter of 2025, the biggest drop for the restaurant chain since 2020, according to multiple news outlets. McDonald’s CEO Christopher Kempczinski said visits to fast food restaurants were down “nearly double digits” among low- and middle-income consumers compared to early 2024.
Despite this, McDonald’s announced on May 12 it plans to hire 375,000 workers across the country this summer, and seeks to add 900 new locations by 2027. It’s not known if any new locations will be brought back to the Loop.
In the meantime, residents, workers and visitors in the Loop may have to reach for different meal options in the area.
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Sarah Li-Cain, AFC is a finance and small business writer with over a decade of experience.
