A Purple Lobster signal is displayed exterior a closed restaurant on Could 14, 2024 in Torrance, California.
Patrick T. Fallon AFP | Getty Pictures
The surge in restaurant chapter filings to this point this 12 months echoes a common enhance in company bankruptcies throughout industries.
At the least 10 restaurant chains (not together with multi-unit franchisees) have filed for chapter in 2024. Bankruptcies are on the rise as diners reduce on spending, labor prices rise and COVID-era authorities assist disappears.
A number of different restaurant chains might file for chapter earlier than the top of the 12 months. Burger FeeThe corporate, which additionally owns Anthony’s Coal Fired Pizza & Wings, stated in a press release Supervision filing In mid-August, there have been “important doubts” in regards to the firm’s working capabilities. Others, reminiscent of Mod Pizza, narrowly averted chapter by way of last-minute gross sales.
Eating places will not be the one corporations looking for chapter safety as excessive rates of interest put stress on companies. As of August 20, Chapter 11 filings have elevated 49% this 12 months, in accordance with BankruptcyWatch. Mall Retailer Expressnursing dwelling chain LaVie Care Facilities and Joann Fabrics and Crafts It is without doubt one of the corporations that filed for chapter safety this 12 months.
Listed below are 10 well-known restaurant chains submitting for chapter safety in 2024:
roti
Mediterranean fast-casual chain Roti filed for Chapter 11 chapter safety on August 23. .
In a press release when it filed for chapter, Chief Govt Justin Seamonds stated the corporate started to wrestle through the Covid-19 pandemic as a result of about half of its places of work are in downtown enterprise districts. New buyers helped it dangle on, however a current droop in shopper spending led to chapter.
As of June, Roti had raised $58 million, in accordance with Pitchbook.
Beppo’s Cave
Individuals dine exterior the Buca di Beppo restaurant in Santiago on August 11, 2020.
Guan Bing | Bloomberg | Getty Pictures
Buca di Beppo declared chapter on August 5.
The corporate blamed rising prices and labor challenges for its monetary difficulties, courtroom paperwork present.
Based in 1993, Buca di Beppo was offered to Planet Hollywood in 2008 following an accounting scandal involving some executives.
beer world
The outside of the World of Beer at Crossgates Mall in Guilderland, New York.
Lori Van Buren/ | Albany Instances Union | Hearst Newspapers | Getty Pictures
Tavern chain World of Beer filed for chapter safety on August 2.
World of Beer plans to restructure by way of chapter and terminate leases at underperforming areas.
The corporate was based in 2007, at a time when the recognition of craft beer was hovering. At this time, craft beer gross sales are down as customers usually drink much less alcohol.
Rubio’s
Rubio’s Restaurant filed for Chapter 11 chapter safety in June. The fast-casual chain, greatest identified for its fish tacos, had 86 areas in California, Nevada and Arizona.
The corporate stated rising meals and utility prices, a shift to hybrid work that reduces lunchtime visitors and a rise in California’s minimal wage are placing an excessive amount of stress on a few of its eating places.
April, California raises minimum wage For quick meals staff at a series with greater than 60 areas, it is $20 an hour. Days earlier than submitting for chapter, Rubio closed 48 underperforming eating places in California.
In August, Rubio agreed to promote it to an affiliate of TREW Capital, one in all its lenders.
The restaurant firm beforehand filed for Chapter 11 chapter in 2020.
Soften Bar and Grill
In June, the Cleveland-based chain stated it was working to pay distributors and landlords. To save lots of the enterprise, it turned to Chapter 11.
The corporate was based in 2006 and is understood for its grilled cheese sandwiches and craft beers.
Kumar’s nook
Kuma Holdings, the mother or father firm of Kuma’s Nook, filed for chapter safety in June.
The Midwestern burger chain, which opened its first location in 2005, stood out from the competitors with its steel and punk-themed menu.
pink lobster
Menu is displayed on a plate at a Purple Lobster restaurant in Austin, Texas, on Could 20, 2024.
Brandon Bell | Getty Pictures
Seafood Large Purple Lobster File for bankruptcy protection In Could, it cited “a tough macroeconomic surroundings, a bloated and underperforming restaurant base, failed or ill-advised strategic strikes and growing competitors.”
One scapegoat for its chapter was its disastrous “Countless Shrimp” promotion in 2023. This comes amid declining gross sales.
The funding group that acquired Purple Lobster on Tuesday named former PF Chang government Damola Adamolekun as the corporate’s subsequent chief, if it efficiently exits Chapter 11 of the U.S. Chapter Code.
Tijuana Flats
Mexican model pizza at Tijuana Flats.
Jeff Greenberg | Common Picture Group | Getty Pictures
In April, Tijuana Flats introduced new possession, a Chapter 11 chapter submitting and the closing of 11 eating places in a press launch.
AUA Non-public Fairness Companions is promoting fast-casual chain Tex-Mex to Flatheads LLC as a part of a restructuring of the restaurant firm.
The chain was based in 1995.
Sew’s knuckles
Rooster tender chain Sticky’s Finger Joint additionally declared chapter in April. Rising commodity prices, the fallout from the pandemic and authorized prices from a trademark case filed by rival Sticky Fingers have led to the corporate’s restructuring.
Sticky’s was based in 2012.
boxer ramen
The Portland, Ore., ramen chain filed for Chapter 11 chapter safety in February. In late April, the chain abruptly closed all 4 areas after greater than a decade in existence.
