Two smaller U.S. restaurant chains filed for bankruptcy protection, not long after Red Lobster and Rubio’s Restaurants declared Chapter 11 bankruptcy filings.
After closing 13 restaurants, Dallas, Texas, U.S.A.-based Buca di Beppo said on 5 August that it filed for bankruptcy.
Buca di Beppo expects day-to-day operations to continue uninterrupted, Chief Restructuring Officer William Snyder said.
"We anticipate moving through this process as quickly and efficiently as possible to emerge as a stronger organization built for the future. We believe this path will best allow us to continue to serve Buca's patrons and communities for many years to come,” Snyder said.
Buca di Beppo President Rich Saultz said the company plans to restructure so it can continue to operate its remaining 44 locations, as well as its plans to open one new one.
"This is a strategic step toward a strong future for Buca di Beppo. While the restaurant industry has faced significant challenges, this move is the best next step for our brand,” Saultz said. “By restructuring with the continued support of our lenders, we are paving the way toward a reinvigorated future.”
Tampa, Florida, U.S.A.-based World of Beer, which serves some seafood dishes, filed for Chapter 11 on 2 August. The company closed 14 locations over the last year and has 16 corporate-owned locations and 17 franchised locations.
World of Beer said that ongoing macroeconomic factors, consumer pushback on pricing actions, debts to landlords and banks, litigation with two franchisees, and high interest rates have diminished its cash flow, Restaurant Dive reported.
In early June, Rubio's Restaurants, also filed for bankruptcy protection. On 1 August, The Original Fish Taco, an affiliate of TREW Capital Management Private Credit LLC, said it would pay a credit bid of USD 40 million (EUR 37 million) to buy the restaurant chain.
In mid-July, One Table Restaurant Brands, the parent company of the 24-unit chain Tender Greens and the 15-unit chain Tocaya, also filed for Chapter 11 bankruptcy protection, Restaurant Dive reported. Additionally, this spring, Maitland, Florida, U.S.A.-based Mexican chain Tijuana Flats Restaurants filed for Chapter 11 protection after closing 40 restaurants.
While the Red Lobster bankruptcy filling in May was much more impactful to seafood suppliers, the slew of bankruptcies and restaurant industry financial challenges could impact the seafood industry.
“Real” sales at eating and drinking establishment sales were essentially flat during the first half of 2024 after adjusting for menu price inflation, according to the National Restaurant Association. Restaurant prices rose an average of 3 percent in the first quarter of this year across all meal parts, according to data from foodservice consulting firm Technomic.
