Another Restaurant Chain Just Filed for Bankruptcy

It’s been a tough few years for the restaurant business. From privately owned mom and pop diners to huge chains, the industry has had a dramatic financial impact due to inflationary factors paired with tariff stress, resulting in higher operating costs and an overall decrease in demand. As a result, many restaurants have been forced to close or drastically shift their business strategy, with many opting to file for Chapter 11 bankruptcy protection. The latest to do so? Planta, a vegan full-service chain that was on a rapid growth spurt over the past few years.

Planta Filed for Chapter 11

According to court records, Planta, which adapts traditional meat dishes, including “sushi, burgers, ceviche, dumplings, and noodles” with vegan ingredients, operates 12 restaurants in six states and Washington, DC, and Toronto, Canada. Earlier this month, it filed for Chapter 11 bankruptcy protections. The company was founded in 2016 and expanded rapidly, according to Planta’s CEO Steven Salm.

It Maintains the Demise Is a Result of Inflationary Pressure and Decrease in Demand

In the bankruptcy filing, Salm maintains that the demise of the restaurant was due to inflationary pressure on input costs paired with a decrease in demand. In 2016, the year it was founded, revenue was $3.5 million. In 2024, it posted over $46 million in sales. However, operating costs increased due to increased labor and food costs. Third-party delivery apps also impacted it. The company attempted to adjust prices accordingly, which hurt customer traffic.6254a4d1642c605c54bf1cab17d50f1e

It Owes Up to $50 Million to Creditors

To mitigate the financial stress, Planta “entered into a convertible note purchase agreement with Anchorage Illiquid Opportunities Master.” Now, it owes between $10 million and $50 million to creditors.

Here Is Where Planta Restaurants Are

Planta has multiple locations nationwide. They are located in West Palm Beach, Miami Beach, Coconut Grove, and Fort Lauderdale, Florida, two in Atlanta, Georgia, two in New York City, one in Chicago, on in Los Angeles and Marina del Rey, one in Bethesda, Maryland, two in DC, and two in Toronto.

TGI Fridays

Over the past year, several other restaurants have filed for Chapter 11. TGI Friday’s did so in 2024 and has continued shuttering restaurants in 2025. According to its website, only 85 remain open. However, the company recently appointed Phil Broad as President of TGI Fridays International Franchising and hopes to increase its international footprint.

BurgerFi

BurgerFi, the parent company of Anthony’s Coal Fired Pizza, filed for Chapter 11 bankruptcy in September 2024. Later in the year, the two restaurants sold at a bankruptcy auction for 54 million.

On the Border

Mexican chain On the Border filed for Chapter 11 bankruptcy earlier this year, after closing over 12 restaurants nationwide. According to data, the chain operates half as many restaurants as it did at the end of 2023.