The restaurant industry is facing turbulent times in 2024. While some chains continue to battle intense competition, others are still grappling with the aftermath of the pandemic. Financial difficulties have plagued several brands for years, forcing them to resort to bankruptcy as a last option.
The year started with a Popeyes franchisee declaring Chapter 11 bankruptcy, quickly followed by several other chains seeking similar financial relief. These included smaller chains like Sticky’s Finger Joint and more prominent names like Red Lobster.
As these chains navigate financial restructuring, many have shuttered locations to stay afloat. Below are 13 restaurant chains that have filed for bankruptcy protection in 2024.
1. BurgerFi
On September 11, BurgerFi International, Inc., the parent company of BurgerFi and Anthony’s Coal Fired Pizza & Wings, announced its Chapter 11 bankruptcy filing. This move comes after the company hinted in an earlier U.S. Securities and Exchange Commission (SEC) filing that it might seek bankruptcy due to continued financial struggles.
According to the filing, BurgerFi estimates assets to be between $50 million and $100 million and liabilities to range from $100 million to $500 million.
Jeremy Rosenthal, BurgerFi International’s Chief Restructuring Officer, filed the complaint, citing the decline in post-pandemic consumer spending, inflation, and rising food and labor costs.
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2. Roti
Roti, the fast-casual Mediterranean chain, declared Chapter 11 bankruptcy on August 23 after experiencing mass closures and a significant drop in sales.
The company attributed the bankruptcy to financial strains such as higher operational costs and challenging market conditions. Roti aims to reorganize its finances, continue operating its 19 locations, and potentially find new investors or buyers.
CEO Justin Seamonds emphasized that bankruptcy would help keep operations running and secure prospects for the chain.
3. World Of Beer
Once a rapidly expanding brand, World of Beer Bar & Kitchen filed for Chapter 11 bankruptcy in August 2024.
The company has seen a decline from its peak a decade ago, struggling with mounting debt and closing 14 locations in the past year. The chain hopes to restructure and focus on its remaining 33 locations in the southeast U.S.
4. Buca Di Beppo
In July 2024, Buca di Beppo filed for bankruptcy after closing 13 locations. The chain has faced declining sales, rising costs, and staffing challenges.
The Chapter 11 filing is part of a strategy to streamline operations, enhance the customer experience, and position the brand for future success. The company plans to restructure its 44 core locations and open a new restaurant.
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5. Gotham Restaurant
After four decades of serving fine dining in New York City, Gotham Restaurant has faced financial turmoil and temporarily shut its doors. Filing for Chapter 11 bankruptcy in July, Gotham Restaurants LLC listed hundreds of thousands of dollars in debt.
The restaurant plans to reopen later in the year, having resumed limited bar service while lunch and dinner services remain suspended.
6. Tender Greens & Tocaya
One Table Restaurant Brands, the parent company of Tender Greens and Tocaya, sought Chapter 11 bankruptcy protection in July. Citing challenges like the COVID-19 pandemic, inflation, and rising interest rates, the company hopes to restructure while operating its 24 Tender Greens and 15 Tocaya locations.
CEO Harald Herrmann hoped bankruptcy would help the company emerge stronger in the competitive restaurant industry.
7. Melt Bar & Grilled
Cleveland-based Melt Bar & Grilled, known for its gourmet grilled cheese sandwiches, filed for bankruptcy in June. The rising cost of goods and labor has taken a toll, and the chain plans to close several Ohio locations as part of its restructuring plan. Melt will focus on updating its remaining restaurants.
8. Rubio’s Coastal Grill
Rubio’s Coastal Grill, which previously filed for bankruptcy during the pandemic, filed for its second Chapter 11 bankruptcy in June.
The company cited the rise in costs, a decline in customer visits, and California’s new $20 minimum wage for fast-food workers as factors. Despite recent closures, Rubio’s will continue to operate 86 locations across California, Arizona, and Nevada.
9. Red Lobster
National seafood chain Red Lobster filed for Chapter 11 bankruptcy shortly after closing dozens of locations in 2024. The company aims to restructure, sell assets, and improve operations. CEO Jonathan Tibus noted that the bankruptcy would allow Red Lobster to address several financial and operational challenges.
Fortress Investment Group has become a potential buyer to help the struggling chain recover.
10. Tijuana Flats
Florida-based Tex-Mex chain Tijuana Flats filed for Chapter 11 bankruptcy in April, citing nearly $19 million in debt. Along with its bankruptcy filing, the chain closed 11 underperforming restaurants. Tijuana Flats has also changed ownership, with Flatheads, LLC acquiring the brand as part of its restructuring strategy.
11. Boxer
In February, portland-based ramen chain Boxer filed for Chapter 11 bankruptcy following pandemic-related challenges and inflation. The company, which operated four restaurants, officially closed all its locations in May.
12. Sticky’s Finger Joint
In April, New York-based chicken chain Sticky’s Finger Joint filed for Chapter 11 bankruptcy after years of legal troubles and pandemic-related challenges.
Sticky’s has faced declining sales, and its financial troubles were worsened by legal disputes, including a trademark infringement lawsuit and a $600,000 judgment in a landlord case.
13. Popeyes Franchisee
A 17-unit Popeyes franchisee, RRG, filed for Chapter 11 bankruptcy at the end of January. The filing stemmed from three underperforming restaurants, which strained the business’s overall operations. RRG plans to continue operating while closing its weaker locations.
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