Longtime Interstate Drive Restaurant Closes Amid Ongoing Nationwide Closures
(UCBJ) – O’Charley’s has shuttered its Cookeville restaurant, ending the run of the longtime casual dining chain at 1401 Interstate Drive, according to reports.
O’Charley’s is in the process of closing multiple locations across the nation as the restaurant continues to shrink its footprint following years of declining sales. This marks the second round of closures for the company over the past five years. In 2023, O’Charley’s closed 18 restaurants in a single day, citing “challenges facing underperforming locations amid a difficult operating environment.”
O’Charley’s was founded in Nashville in 1971 by founder Charley Watkins and once operated more than 200 locations across 17 states. In recent years, the company’s footprint has shrunk significantly, with fewer than 50 company-owned restaurants and a small number of franchise locations remaining.
Cannae Holdings owns a majority stake in O’Charley’s. In its second-quarter 2026 shareholder letter, the company reported that O’Charley’s was facing challenges “maintaining customer traffic,” with sales declining 13.1% during the quarter compared to 2025.
The restaurant group reported $373.4 million in revenue for the 12 months ending in June, down from $406.5 million during the same period a year earlier. It also reported an operating loss of $81.9 million, compared to $13.3 million a year earlier.
According to Cannae, management was focused on stabilizing sales through:
- Menu changes
- Guest service
- Closing underperforming restaurants
The Cookeville location was part of the latter, and now it is no more, at least for now. As of August, the company had already shuttered four locations.
This is an ongoing story. Check back for details.
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