Levelland lost three businesses within days, leaving some vacant storefronts and loss of local jobs.
Wendy’s closed on Sept. 25 after its franchise operator, Meritage Hospitality Group, filed for Chapter 11 bankruptcy protection. According to Meritage, the Levelland location was identified as one of its first unprofitable locations scheduled to close.
Beef inflation, deep discounting under former leadership and marketing misses led to franchise store-level margins that hit a 30-year low at Meritage, per a May CEO report. Store-level EBITDA was down by 48%.
Meritage operates 314 Wendy’s restaurants across 15 states, with bankruptcy filings indicating that 30 or more restaurants could be closed during a restructure.
The filing came after Meritage conducted a “candid assessment” of its financial position, including challenges impacting the Wendy’s system over the past few years. Wendy’s has faced double-digit samestore sales declines over the past few quarters and is in the midst of plotting a brand turnaround under new CEO Robert Wright.
These disappointing financials led to Meritage asking for forbearance earlier this year, and during the second quarter, it resumed full interest payments. The company cut over $7 million from its general and administrative and operational expenses related to internal restructuring.
The closing of Starbucks at 812 College Ave. - just a day after Wendy’s closed - came as a shock to many local citizens after a letter was posted on the door with a week’s warning of the closure.
Starbucks had warned on Sept. 24, that it would close about 250 coffeehouses across North America, and the second round of closures during CEO Brian Niccol’s two-year tenure. The closures amount to 1% of a North American footprint of roughly 18,000 locations.
The company’s explanation was simple some stores don’t meet its standards for customer experience, and others don’t look financially viable.
In its filing with the US Securities and Exchange Commission, Starbucks said the closures will be completed by the end of fiscal year 2026, with approximately $300 million of restructuring charges to be incurred. Those charges are a cost the company is accepting up front.
Starbucks continues to have a presence in Levelland at United Supermarket. Other coffee options remain in the city.
The third loss came from T-Mobile at The Shops at Levelland located on 409 East Highway. This was T-Mobile’s only physical retail location in the city.
The official store locator and local announcements confirmed the permanent shutdown in September without an explicit public reason provided by the company.
The company has reported that T-Mobile stores and facilities are closing in Texas and nationwide as part of a retailer (TPR) locations and consolidating regional operations. Some remaining or upgraded footprints are shifting into specialized, company- owned “Experience” stores rather than traditional neighborhood sales outlets.
The closing affects the physical retail store, not T-Mobile’s wireless service in the area, but customers needing face to face assistance may now have to manage their accounts online or travel to another location.
With inflation and gas prices on the rise and higher property taxes, the population is being forced to spend more on the basic cost of living. Smaller rural cities and towns can be heavily impacted by the higher costs and stagnant wages.
According to the Levelland Economic Development Corporation reports that retail businesses provide approximately 744 jobs, while restaurants, hotels and other accommodation and food service businesses provide another 420. Those industries account for more than 1,100 jobs combined.
Any loss of business in Levelland or similar communities can affect those numbers and the sales tax collections.
Levelland’s total sales tax rate is 8.25%, including 2% collected by local taxing jurisdictions.
The Levelland Economic Development Corporation reports that retail businesses provide approximately 744 jobs, while restaurants, hotels and other accommodation and food service businesses provide another 420. Those industries account for more than 1,100 jobs combined.