This Beloved Fast-Casual Chain Just Declared Bankruptcy
Quite a few restaurants have already filed for bankruptcy after the coronavirus pandemic forced dining rooms to shut down. Although a few are pulling through, some could be next (Ruby Tuesday is one of them!). But the most recent chain to file for Chapter 11 bankruptcy is Garbanzo Mediterranean Fresh.
The fast-casual favorite has 25 locations in multiple states like Massachusetts, Pennsylvania, Virginia, Georgia, Indiana, Illinois, Minnesota, Texas, and Colorado. Sales of their pitas, salads, gyros, and laffa dropped during the pandemic. Yet, profit issues were around before that.
According to Restaurant Business, the chain brought in $2.2 million less last year compared to 2018. In February they hired a restructuring advisor, hoping to reverse the negative earnings. But sales went down by 75% when quarantining started. Catering was a big part of Garbanzo's business, and bookings fell 90% during the pandemic.
Most Garbanzo Mediterranean Fresh locations will stay open with limited operations despite the bankruptcy filing. This does allow the company to go through restructuring in order to save money.
Several other chains that have also had to declare Chapter 11. Le Pain Quotidien filed in May and was bought by Aurify Brands, saving at least 35 cafe locations. Craftworks, which operates Logan's Roadhouse restaurants, plus Old Chicago Pizza & Taproom, Rock Bottom Restaurant & Brewery, and Big River Grille & Brewing Works, filed in April. They also announced then that all Logan's Roadhouse locations are closing indefinitely as they reorganize. Those aren't the only ones, though. Here are 11 Major Restaurant Chains That Have Filed for Bankruptcy recently.
With coronavirus cases continuing to rise around the country and restaurant restrictions still in place, some other chain favorites could be in limbo next. Places like Denny's, Outback Steakhouse, and The Cheesecake Factory are trying to stay afloat. These are the 6 Beloved Restaurant Chains That Are in major Trouble Right Now.