One of the biggest narratives from 2024: Restaurant bankruptcies

It was a record number for Chapter 11 filings outside of the pandemic and no segment was spared The year 2024 has been unkind to many restaurant brands, as especially evidenced by the staggering number of bankruptcies filed this year. Indeed, restaurants are on track to declare the most bankruptcies in decades with the exception of 2020, when the pandemic upended the industry. No segment has been spared, with Chapter 11 filings from legacy chains like Red Lobster and TGI Fridays to once-quickly-growing startups like Hawkers Asian Street Food and Melt Bar & Grilled, to franchisees of major brands like Pizza Hut and Applebee’s. Several factors have created this challenging environment. Many concepts took on too much debt to navigate the pandemic, for instance, and that debt became significantly more expensive with the rise in interest rates. Simultaneously, input costs skyrocketed across the board while consumers pulled back on their restaurant spending, eroding topline sales and traffic. Here is a look at some of the biggest bankruptcies from 2024. 1 red lobster.png Type Image Caption Credits Gating level anonymous user DataTable subpages Media Image Gallery Slide description: Perhaps the biggest bankruptcy of the year came from Tijuana Flats filed for Chapter 11 bankruptcy protection in April and was promptly sold to Flatheads LLC. Image Alt Text: Tijuana Flats.pngGallery Slide Headline: Tijuana FlatsPublished:  3 Boxer Ramen.png Type Image Caption Credits Getty Images/iStockphoto Gating level anonymous user DataTable subpages Media Image Gallery Slide description: Also in April, Portland, Ore.-based ramen chain Party Fowl, founded in 2014 and counting six brick-and-mortar locations, filed for bankruptcy protection. Image Alt Text: party fowl exteriorGallery Slide Headline: Party FowlPublished:  5 Arbys.png Type Image Caption Credits Arby’s Gating level anonymous user DataTable subpages Media Image Gallery Slide description: Arby’s franchisee Rubio’s Coastal Grill filed for bankruptcy in June, about a week after abruptly closing nearly 50 locations in California. The company said it is pursuing bankruptcy to facilitate the sale of the 41-year-old business. Image Alt Text: 6 Rubios.pngGallery Slide Headline: Rubio’s Coastal Grill Published:  7 Melt Bar.png Type Image Caption Credits Melt Bar & Grilled Gating level anonymous user DataTable subpages Media Image Gallery Slide description: Cleveland-based Gotham Restaurant filed for bankruptcy in July and permanently closed in November after 40 years in business. Image Alt Text: Gotham Restaurant exteriorGallery Slide Headline: Gotham RestaurantPublished:  9 world of beer.png Type Image Caption Credits World of Beer Bar & Kitchen Gating level anonymous user DataTable subpages Media Image Gallery Slide description: Tampa, Fla.-based World of Beer Bar & Kitchen filed for bankruptcy in August, citing rising interest rates, higher rent and operating costs, and a slow recovery from the pandemic. Image Alt Text: World of Beer Bar & KitchenGallery Slide Headline: World of Beer Bar & KitchenPublished:  10 eym.png Type Image Caption Credits Pizza Hut Gating level anonymous user DataTable subpages Media Image Gallery Slide description: In July, Buca di Beppo, a family-style Italian concept founded in 1993, filed for Chapter 11 bankruptcy protection in August, citing declining sales, rising costs, continued staffing challenges, and changes in consumer preferences. Image Alt Text: Buca di Beppo logoGallery Slide Headline: Buca di BeppoPublished:  12 hawkers.png Type Image Caption Credits Hawkers Asian Street Food Gating level anonymous user DataTable subpages Media Image Gallery Slide description: Tender Greens and parent company One Table Restaurant Brands filed for Chapter 11 protection in July. Together, Tender Greens and To