These Two Restaurant Chains Were Just Saved From Going Out of Business
With the pandemic's devastating effects catching up with fast food and casual dining chains, the list of restaurant companies filing for bankruptcy keeps growing. However, some have managed to come back from the brink of shutting their operations down for good. (To find out how the pandemic affected the grocery supply chain, check out 8 Grocery Items That May Soon Be in Short Supply.)
In the beginning of this year, things were looking pretty grim for Village Inn and Bakers Square, two family-friendly restaurant chains with locations in over 20 states across the Midwest and the South. Their parent company, American Blue Ribbon Holdings, had filed for chapter 11 bankruptcy, and started downsizing their locations, closing 33 underperforming restaurants. However, the company just emerged on the other side with a restructuring deal that will keep both chains in business, according to FSR Magazine.
American Blue Ribbon Holdings has now permanently closed 61 stores across both brands and franchised out dozens more since the end of last year. The new order leaves Village Inn with 21 company-owned and 118 franchised restaurant locations, while Bakers Square will keep operating 14 locations.
The company also owns pie producer Legendary Baking, which distributes more than 20 million pies each year to restaurants and grocery retailers across the United States. While both chains sell the award-winning pies at their locations, the businesses had been separated into two different entities during the bankruptcy process.
The Village Inn is known for its reasonably priced classic breakfast and homestyle dinner options. However, with fierce competition from family restaurants like Denny's and IHOP and a decrease in foot traffic and breakfast sales during the pandemic, the chain's overall sales had suffered significant losses.
Bakers Square is a casual dining chain serving a full breakfast, lunch, and dinner menu, and are particularly known for their pies and baked goods. In fact, pie sales make up about 30% of the company's total sales, according to Restaurant Business.
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