The restaurant industry is facing turbulent times as several well-known chains are grappling with financial difficulties, leading them to file for bankruptcy. From rising costs to changing consumer habits, these challenges have forced many to streamline operations and seek financial protection. Here’s a look at the restaurant chains that have sought bankruptcy protection in 2024.

1. Roti

Roti, a fast-casual Mediterranean chain, filed for Chapter 11 bankruptcy on August 23. The company cited higher costs, mixed restaurant performance, and tough market conditions as reasons for the move. Roti plans to continue operating its 19 remaining locations while seeking new investors or a buyer.

2. World of Beer Bar & Kitchen

Once a fast-growing brand, World of Beer Bar & Kitchen filed for Chapter 11 bankruptcy in August due to growing debt. The chain has closed 14 locations over the past year and now operates 33 restaurants, primarily in the southeast. The company hopes to restructure and focus on its profitable locations.

3. Buca di Beppo

Buca di Beppo filed for Chapter 11 bankruptcy after closing 13 locations. The chain cited decreasing sales, increasing costs, and staffing challenges. Buca di Beppo will continue to operate its 44 core locations and is restructuring to enhance the dining experience for customers.

4. Gotham Restaurant

Gotham Restaurant, a fine dining establishment in New York City, filed for Chapter 11 bankruptcy on July 24. The restaurant temporarily halted lunch and dinner services after losing $45,000 in a cyberscam but has reopened its bar. Gotham is working to reopen fully by September.

5. One Table Restaurant Brands

One Table Restaurant Brands, the parent company of Tender Greens and Tocaya, filed for Chapter 11 bankruptcy on July 17. The company cited the pandemic, rising interest rates, and elevated costs as reasons for its financial woes. One Table is seeking $3 million from an investment company to continue operations while looking for a buyer.

6. Melt Bar & Grilled

Melt Bar & Grilled, known for its gourmet grilled cheese sandwiches, filed for Chapter 11 bankruptcy on June 14. The chain has struggled with rising costs and changes in the service industry. Melt will close its Akron and Mentor, Ohio locations, leaving it with three remaining locations.

7. Rubio’s

Rubio’s filed for its second Chapter 11 bankruptcy on June 5, citing rising costs, declining customer visits, and California’s new $20 minimum wage for fast-food workers. The chain closed 48 underperforming California restaurants in May but continues to operate 86 locations in California, Arizona, and Nevada.

8. Red Lobster

Red Lobster filed for Chapter 11 bankruptcy after abruptly closing dozens of locations. The seafood chain plans to use the proceedings to improve operations, reduce locations, and sell its assets. Fortress Investment Group has agreed to buy Red Lobster out of bankruptcy.

9. Tijuana Flats

Tijuana Flats filed for Chapter 11 bankruptcy protection in April, citing nearly $19 million in debt. The chain has closed 40 locations since the year began and attributes its financial struggles to rising food and labor costs and shifts in consumer spending.

10. Boxer

Boxer, a Portland-based ramen chain, announced it would close all four of its restaurants on May 29 after filing for Chapter 11 bankruptcy in February. The closures were due to pandemic-related challenges and inflation.

11. Sticky’s Finger Joint

Sticky’s Finger Joint, a New York-based chicken tender chain, filed for Chapter 11 bankruptcy at the end of April. The chain has faced decreasing sales, restaurant closures, and multiple lawsuits, leading to significant financial strain.

12. RRG (Popeyes Franchisee)

RRG, a 17-unit Popeyes franchisee, filed for Chapter 11 bankruptcy in January due to underperforming restaurants and financial burdens. The franchisee plans to continue operating while closing poor-performing locations.

In summary, the restaurant industry continues to face significant challenges, with numerous chains filing for bankruptcy in 2024. From rising operational costs to changing consumer preferences, these financial struggles highlight the volatile nature of the industry. As these chains navigate bankruptcy proceedings, they aim to restructure and emerge stronger, hoping to continue serving their loyal customers.

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