Restaurant chains that filed for bankruptcy this year
The Red Lobster logo is displayed outside of a closed restaurant in Torrance, California, on May 14, 2024.
Patrick T. Fallon | Afp | Getty Images
Restaurant bankruptcy filings have surged so far this year, echoing a broader rise in corporate bankruptcies across sectors.
At least 10 restaurant chains, not including multi-unit franchisees, have filed for bankruptcy in 2024. August alone brought three Chapter 11 filings from notable eateries. The increase in bankruptcies comes as diners pull back their spending, labor costs keep rising and Covid-era government help disappears.
Several more restaurant chains could file for bankruptcy before the end of the year. BurgerFi, which also owns Anthony’s Coal Fired Pizza & Wings, said in a regulatory filing in mid-August that there is “substantial doubt” about the company’s ability to operate. Others, such as Mod Pizza, have narrowly avoided bankruptcy through a last-minute sale.
Restaurants are not the only companies seeking bankruptcy protection as high interest rates weigh on businesses. Chapter 11 filings have climbed 49% this year as of Aug. 20, according to BankruptcyWatch. Mall retailer Express, nursing home chain LaVie Care Centers and Joann Fabrics and Crafts are among the companies that have filed for bankruptcy protection this year.
Here are the 10 notable restaurant chains that filed for bankruptcy protection in 2024:
Roti
Mediterranean fast-casual chain Roti filed for Chapter 11 bankruptcy protection on Aug. 23. The company said it is working with its landlords and suppliers to keep its 22 locations open while it searches for a new buyer or investors.
The company began struggling during the Covid-19 pandemic because roughly half its locations were in downtown business districts, CEO Justin Seamonds said in a statement at the time of the bankruptcy filing. New investors helped it hold on, but the recent downturn in consumer spending led to insolvency.
Roti had raised $58 million as of June, according to Pitchbook.
Buca di Beppo
People dine outside a Buca di Beppo restaurant in San Diego on Aug. 11, 2020.
Bing Guan | Bloomberg | Getty Images
Buca di Beppo declared bankruptcy on Aug. 5. The Italian American chain is keeping 44 of its locations open while it restructures, and plans to open another restaurant, too.
The company blamed its financial difficulties on rising costs and labor challenges, according to court filings.
Buca di Beppo was founded in 1993 and sold to Planet Hollywood in 2008, following an accounting scandal involving some of its top executives.
World of Beer
The exterior of World of Beer at Crossgates Mall in Guilderland, New York.
Lori Van Buren/ | Albany Times Union | Hearst Newspapers | Getty Images
Tavern chain World of Beer filed for bankruptcy protection on Aug. 2. The company blamed high interest rates, inflation and a slow return to pre-pandemic dining habits.
World of Beer plans to restructure and end leases at underperforming locations through bankruptcy.
The company was founded in 2007,…
Read More: Restaurant chains that filed for bankruptcy this year