The restaurant chain, which operated 230 locations throughout 23 states, filed for bankruptcy in 2016, but then exited bankruptcy by the end of that year. By John Quinn. In this case, the business, or in this case the restaurant, isn't closing for good—yet. The pandemic, massive amounts of debt and a shift in shopping as well as dining habits created a lethal cocktail of bankruptcies and closures. With the Italian chains struggling with sales prior to the pandemic, COVID-19 pushed the parent company for Brio Italian Mediterranean and Bravo Fresh Italian over the edge to file for Chapter 11 bankruptcy protection in mid-April 2020. Several dozen restaurants were re-opened following a sale to a new parent company. This was not a great surprise, however. While generally more resilient to the ravages of 2020, many major restaurant chains were also hit hard. It's IHOP franchisee, CFRA Holdings, that filed for Chapter 11 bankruptcy protection in mid-May. The buyer, Aurify Brands, plans to reopen at least 35 Le Pain Quotidien locations and potentially rehire former workers. This seafood restaurant chain, which first opened in Houston in 1991, shrank by over a third when 41 locations abruptly went out of business in 2017. By late August, the parent company CC Entertainment filed for bankruptcy, and, now, the future of the 43-year-old company is unclear. Almost every industry has been affected by the coronavirus in some way, but arguably few have weathered the tumultuous effects that the restaurant industry has. When coronavirus forced dining room closures, these chains could no longer survive. According to S&P Global, there have been more than 50 retail bankruptcies … The coronavirus pandemic has wreaked havoc on businesses of all types, but few establishments have suffered more than restaurants. Directly citing the impact of the COVID-19 pandemic on its profits, budget steakhouse Sizzler, which has been around for over 6 decades, filed for bankruptcy in September of 2020 (despite several millions of dollars in federal loans paid out earlier in the year). For more restaurant news, here are the beloved restaurant chain dishes that are gone forever. In 2018, the chain was acquired by Craftworks Holdings: a multi-brand operator and franchisor specializing in brewery restaurants. Sizzler USA: The restaurant chain, which was one of the country's first casual restaurant chains, filed for bankruptcy because of Covid-19 lockdowns that forced it to temporarily close its restaurants' dining rooms. The restaurant chain, which operated 230 locations throughout 23 states, filed for bankruptcy in 2016, but then exited bankruptcy by the end of that year. Once the successful operator of more than 1,600 restaurant franchises including Wendy’s and Pizza Hut, NPC International filed for bankruptcy in July. The 62-year-old company said that it's using the bankruptcy process to reduce debt and renegotiate its leases. Its lenders purchased the remaining restaurants at a bankruptcy sale. Just One More Restaurant Corp., which licenses the Palm name to 24 restaurants across the country, including three in Manhattan, filed for Chapter 11 protection in Fort Myers, Fla., on Thursday. Most of the deli chain's locations are still open for takeout and delivery while others are indefinitely closed. In fact, nearly 110,000 restaurants in America shut down for good due to COVID-19. December 19, 2020. Unfortunately, in December 2020, citing the pandemic, the company filed for bankruptcy. In March of 2020, the chain initially shuttered its locations on a temporary basis, but within less than two months, announced that the closure would be permanent. Bankruptcies Bankruptcy Restaurant Chains Chain Restaurants IHOP Friendly 's CC Entertainment CPK California Pizza Kitchen Wendy 's NPC International CHLOE Vegan Dine Brands Global Souplantation Founded Chuck E. Cheese Chuck E. By Steven John. CFRA Holdings managed nearly 50 IHOP locations spread across multiple southern states, but most of those restaurants saw a double-digit drop in profits during the pandemic, prompting the company to file for bankruptcy in May. Founded in 1978, the all-you-can-eat buffet-style restaurant chain expanded to 97 locations by May 2020 until it succumbed to COVID-19. You'll never eat in these institutions again. A number of retailers and restaurant companies have filed for bankruptcy in 2020. saddest restaurant closures in every state. December 25, 2020. Vegan fast-casual restaurant By CHLOE opened its first location in New York City in 2015, and within a few years, had multiple locations in the U.S, plus five in London and one in Canada. New York-based restaurant operator Aurify Brands bought all 98 U.S. locations of the restaurant and plans to reopen at least 35. Restaurants that couldn't pivot to a takeout model (which was the only way for restaurants to stay in business for multiple weeks) had to close, and many of them won't be reopening. EatThis.com is part of the AllRecipes Food Group. One of the last-ditch efforts many restaurants will take to save their businesses is to file for bankruptcy. Chuck E. Cheese was already carrying a debt load of more than a billion when the pandemic forced the shuttering of all of its locations nationwide. When states mandated that restaurants and bars close due to coronavirus, Craftworks couldn't keep their restaurants afloat. In late June, Chuck E. Cheese's parent company, CEC Entertainment Inc., filed for Chapter 11 bankruptcy. Nineteen locations closed as part of the bankruptcy restructuring. Here are just a few of the beloved chains and local eateries that had no choice but to file for Chapter 11.. Chain restaurants have combined to close more than 1,500 locations since the pandemic began. An early victim of the effects of COVID-19, bakery, sandwich, and pastry chain Le Pain Quotidien filed for bankruptcy in May of 2020. Stay informed and get the latest food news delivered straight to your inbox by signing up for our newsletter. Despite receiving $6.4 million in Paycheck Protection Program (PPP) funds, Florida-based deli chain TooJay's filed for federal bankruptcy protection at the end of April 2020, citing coronavirus as the cause. We pulled together a list of restaurant companies that have filed for bankruptcy this year. Restaurant Chain Bankruptcies Amid Pandemic Pressure by Victoria Campisi. A boy walks past the Friendly's restaurant in Foxborough, Mass., Wednesday, Oct. 5, 2011. NPC International, which operates more than 1,600 restaurant franchises, had been struggling before the pandemic and the forced restaurant closures exacerbated existing problems. Companies can also use bankruptcy as … Read Next. Despite secretly operating under the name Pasqually's Pizza and Wings on delivery apps like GrubHub during the pandemic, this desperate attempt to drive revenue wasn't enough to keep the chain famous for its games, singing animatronic mouse shows, and pizza afloat. In early July, the owner of Fig & Olive, Luxury Dining Group, declared Chapter 11 bankruptcy, citing employee lawsuits and the pandemic. Get the best food tips and diet advice every day. Sadly, the operator of 98 Le Pain Quotidien restaurants, PQ New York Inc., filed for Chapter 11 bankruptcy in late-May 2020. Each cited declining foot traffic in the U.S. as reason for the need to seek Chapter 11 protection. An early victim of the effects of COVID-19, bakery, sandwich, and pastry chain Le Pain Quotidien filed for bankruptcy in May of 2020. In 2018, the chain was acquired by Craftworks Holdings: a multi-brand operator and franchisor specializing in brewery restaurants. Sweet Tomatoes, which operates as Souplantation in Southern California, had a good run. And more have closed since then, including restaurants in California, Texas and South Carolina last year. Luckily, this doesn't spell the end for LPQ. These are the restaurant chains that have had to declare bankruptcy due to the pandemic. This Nashville, Tennessee-based steakhouse has been through a lot. The COVID-19 pandemic has imposed a significant amount of hardship on the restaurant industry, leading many to declare bankruptcy. Pizza Hut has been selling pizza like crazy and NPC hopes to use cash to maintain operations, pay benefits for employees, and pay vendors for goods and services. They had already been losing money before the pandemic, but its advent accelerated the folding. We're hoping these 7 Popular Restaurants That May Not Survive the Coronavirus Pandemic aren't the next victims of the coronavirus. By … By John Quinn. The impact isn’t just being felt by bar and restaurant owners. Filed under bankruptcy , chain restaurants , Coronavirus , steakhouses , 9/22/20 The beloved restaurant was more than just an eatery, but now it's in danger. Amid the coronavirus outbreak, that number climbed to 71 of its 92 restaurants. Not all bankruptcies result in outright liquidation. Here is a list of 10 major restaurant chains that filed for bankruptcy in 2020. Some 185 locations were closed permanently, while another 230-plus restaurants remain in operation while the parent company looks to consolidate debt and likely be sold off. In other words, it has to close for good. The coronavirus pandemic has wreaked havoc on businesses of all types, but few establishments have suffered more than restaurants. Nearly half of the casual restaurant chain's 90 locations closed after it filed for bankruptcy. Profile in Leadership: JP Comte. A beloved diner and ice cream shop with an 85-year history, Friendly’s filed for bankruptcy in the late fall of 2020. Chapter 7 bankruptcy, on the other hand, is the complete liquidation of a company. Your favorite childhood restaurant is at risk of closing forever. The All American Burger – a regional American fast-food restaurant chain founded in 1968 in Los Angeles, California, by Aaron Binder and made famous in the movie Fast Times at Ridgemont High Last location was in Hollywood and was replaced by a Chipotle in 2010.; Bajio Mexican Grill – a Mexican food chain that was acquired by Costa Vida in 2011 In March 2020, Craftworks filed for Chapter 11 bankruptcy and then announced in April that all Logan's Roadhouse locations would remain closed indefinitely and is considering whether the doors will stay closed for good. The company's future is looking up, though. As of today, the chain—which serves cuisine from South of France, Spain and Italy—has laid off a staggering 700 workers and currently has only 34 employees left. All Rights Reserved. However, one of the largest franchisees, NPC International Inc. of the two restaurants, filed for Chapter 11 bankruptcy protection early July. Upscale Restaurant Chain Goes Bust, Blaming ‘Progressive’ Wage Laws By . In May 2020, the chain's parent company, Garden Fresh Corp, filed for Chapter 7 bankruptcy—choosing to liquidate the business and close its doors for good. The operator closed 49 restaurants in North Carolina, South Carolina, Tennessee, and Virginia. FoodFirst will be seeking to sell the company, so hopefully, this isn't the last you'll see of these beloved restaurants. Like with Wendy's and Pizza hut above, IHOP is not going under. It’s the second time in 10 years that Friendly’s has filed for bankruptcy. The parent company hopes to sell the two chains to keep them afloat. This Popular Chain Restaurant Just Filed for Bankruptcy. Others have, unfortunately, already been added to our list of the saddest restaurant closures in every state. July 1, 2020 Victoria Campisi. Prior to the pandemic, the management company, FoodFirst Global Restaurants, had already closed 10 stores. When restaurants start to reopen, waiters', hostesses', and bartenders' jobs will drastically change due to safety measures; but the fact of the matter is that many of these service workers won't even be around to experience how their work-life will be affected. When a business files for Chapter 11 bankruptcy, the company is given time to reorganize and restructure their business and may even seek a buyer for the company. With CDC guidelines mandating that dine-in restaurants and buffets close to slow the spread of the coronavirus, there was nothing Souplantation could do to stay afloat amid the pandemic. The company said in a statement they did not intend to permanently close any locations. Once numbering 300-plus locations, the chain was already down to fewer than 100 spots left. These two small restaurant chains—with a combined 10 locations across the West Coast—brought sustainable seafood to the forefront. Upscale dining chain Fig & Olive operates eight locations in five states but that may dwindle down to nothing. Bamboo Sushi was the world's first certified sustainable sushi restaurant and the world's first restaurant to know their carbon footprint down to the menu item. Speaking of delivery, do you know about these 7 Worst Takeout and Delivery Foods Ever? Jeremy Hill. Founded in the late 1970s and at one point numbering nearly 100 locations under both the names Souplantation and Sweet Tomatoes, this all-you-can-eat style buffet restaurant did not survive the COVID-19 pandemic. The company, which is down to 59 locations from … The company announced that they would be able to keep most of their 130 locations open while under Chapter 11 protection and predicted minimal layoffs. Several dozen restaurants were re-opened following a sale to a new parent company. The Italian chain filed for bankruptcy protection in April after years of difficult sales, citing more than $110 million in debt. IHOP’s parent company, Dine Brands Global, committed to re-opening the shuttered locations. Tens of thousands of small businesses have closed permanently during the pandemic, with restaurants representing a majority of them. The chain expects to reorganize and recover, and is in the process of reopening some of their locations. Even these huge companies and household names had a tough time surviving the pandemic. The chain’s bankruptcy petition listed $1 million to $10 million in liabilities and a similar amount in assets. restaurants across the country had to shutter their doors, 7 Popular Restaurants That May Not Survive the Coronavirus Pandemic, filed for Chapter 11 bankruptcy in late-May 2020, plans to reopen at least 35 Le Pain Quotidien locations, 7 Mistakes You Should Avoid at Dine-in Restaurants, filed for federal bankruptcy protection in April 2020, Craftworks filed for Chapter 11 bankruptcy, filed for federal bankruptcy protection at the end of April 2020, citing employee lawsuits and the pandemic, filed for Chapter 11 bankruptcy protection early July, Pizza Hut has been selling pizza like crazy, favorite childhood restaurant is at risk of closing forever, Click here for all of our COVID-19 coverage. How restaurant chain bankruptcies provide opportunities. This was not a great surprise, however. Explore this storyboard about Food & … Before coronavirus took hold of the country, restaurant chains were filing for Chapter 11 bankruptcy protection because of normal fluctuations in the industry – but then the pandemic hit. While operating with an incredibly thoughtful and conscious mission, these two seafood chains' mission may end here. If you plan to visit a restaurant soon, read up on these 7 Mistakes You Should Avoid at Dine-in Restaurants. Bar Louie Restaurants, a chain of gastropubs, both filed for bankruptcy on Monday. During the next few months, the company managed to restructure and eliminate nearly a quarter of a billion in debt and by the late fall, California Pizza Kitchen emerged from bankruptcy. Hopefully, something can be done to pull some of these out of their financial struggle. In mid-summer 2020, CPK entered Chapter 11 bankruptcy. In the early days of the COVID-19 lockdowns, most restaurants were forced to stop operating—and even when restrictions eased, most dining establishments saw far fewer patrons than ever before. The hope is that a baked goods company will buy the remaining 30 restaurants and the franchise rights to 20 or so more, to keep the chain alive. And this week, we learned of yet another filing: Punch Bowl Social just announced that it is filing for Chapter 11 bankruptcy.Conceived as an "eatertainment" chain, the restaurant paired the … 10 Biggest Restaurant Chain Bankruptcies of 2020. Anyone who has worked the back of the house at a popular restaurant knows how chaotic the kitchen can feel during a restaurant “rush” hour—knives, spoons, and spatulas being swung around, glassware flying, line cooks and sous chefs furiously plating food and sending it out. Before you get too concerned: Wendy's and Pizza Hut are not going out of business. The parent company for the two seafood chains, Sustainable Restaurant Holdings, filed for federal bankruptcy protection in April 2020, blaming the coronavirus shutdown. Vapiano The logo of restaurant chain … It affects waiters, cooks, and the people who supply food to these establishments. Customers love Le Pain Quotidien—colloquially referred to as LPQ—for its array of healthy fare like soups, salads, and sandwiches. The parent company of Carlsbad-based restaurant chain Rubio's Coastal Grill filed for Chapter 11 bankruptcy protection Monday as part of a restructuring plan … The parent company of the Belgian-based bakery chain announced that it would be selling off the U.S. arm for just $3 million. The progressive push for higher minimum wage laws has had perfectly predictable results: lower-income people are most harmed, businesses switch to robots, businesses shutter, or as in the case of west coast Restaurants Unlimited, Inc., they simply file for bankruptcy. Once numbering 300-plus locations, the chain was already down to fewer than 100 spots left. There's no way to sugarcoat it: … That's because restaurants across the country had to shutter their doors due to COVID-19 dining restrictions. After holding on for months, Ruby Tuesday filed for Chapter 11 bankruptcy in early October of 2020. © 2020 Galvanized Media. Restaurant bankruptcies are multiplying in 2020 and several chains filed for chapter 11 or debt protection across all segments: from quick-service restaurants Krystal Burger (declared bankruptcy back in January), to fast-casual chains Vapiano, Cosi and Le Pain Quotidien to buffet Garden Fresh Restaurant. In addition to Logan's Roadhouse, the holding company owns eight other restaurant chains, including Old Chicago Pizza & Taproom, Rock Bottom Restaurant & Brewery, and Big River Grille & Brewing Works. Some will be trying to stick around, while others will be gone for good. 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