There has always been a lot of uncertainty in the food business, and in 2024, it’s clearer than ever. Many restaurant companies have had difficulty staying in business because of rising costs, changes in customer behavior after the pandemic, and ongoing inflation.
Some have filed for bankruptcy to fix their finances and keep their businesses open. These changes have affected small and big chains; some have closed stores to save money. Here is a list of the food companies that have filed for bankruptcy in 2024.
1. BurgerFi
BurgerFi International, Inc., which owns both BurgerFi and Anthony’s Coal Fired Pizza & Wings, filed for Chapter 11 bankruptcy on September 11. The company chose to “preserve the value of its brands for stakeholders.”
The filing came soon after the company said in August that it might file for bankruptcy because of ongoing money problems. The statement says that BurgerFi owes between $100 million and $500 million and has assets worth between $50 million and $100 million.
Jeremy Rosenthal, BurgerFi’s chief restructuring officer, said that both BurgerFi and Anthony’s Coal Fired Pizza & Wings are still popular despite the bad economy. He did say, though, that the company had been hit hard by falling customer spending after the pandemic, rising prices, and higher costs for food and labor. The company is going to use bankruptcy to get its business back on track.
2. Roti
The Mediterranean fast food business Roti filed for Chapter 11 bankruptcy on August 23. The company’s main reasons for bankruptcy were financial problems, such as rising prices and inconsistent performance across its eateries. Roti also had to deal with tough market conditions, which influenced its choice.
Roti shut down many restaurants and saw a drop in system sales last year, but it still plans to run its 19 restaurants in Chicago, Minneapolis, and Washington, D.C.
The company filed for bankruptcy to help it get its finances back in order, find new partners or even find a buyer. CEO Justin Seamonds told loyal customers that Roti would still be open during this time.
3. Beer World
It used to be that World of Beer Bar & Kitchen was one of the fastest-growing casual eating chains in the country. But in 2024, the business ran out of money. After going bankrupt under Chapter 11 in August, the chain had only 33 stores left, most of which were in the southeast.
The company said its failure was due to mounting debt that had been building for years due to franchisees’ bad management choices, court fights, and the pandemic’s wider effects. World of Beer wants to get back on track by reorganizing and focusing on its most valuable sites.
4. The Buca di Beppo
A well-known Italian-American restaurant company called Buca di Beppo made news in July when it shut down 13 sites. Not long after that, the business filed for Chapter 11 bankruptcy. Buca di Beppo is having a hard time because sales are going down, costs are going up, there aren’t enough workers, and customers’ tastes are changing. The business wants to use bankruptcy to improve its operations and customers’ feelings about it.
Even though Buca di Beppo has money problems, it will still run its 44 main sites and is planning to open another one. Our goal is to emerge from bankruptcy better and more able to handle change.
5. Gotham Food Place
The famous Gotham Restaurant in New York City closed on July 24 after 40 years in business. It filed for Chapter 11 bankruptcy. The high-eating restaurant has almost $500,000 in debt, with large chunks of that going to the New York State Department of Taxation and Finance.
A recent cyber scam cost Gotham $45,000, which co-owner Cassandra Csencsitz said was a huge setback for a struggling business. The restaurant briefly stopped serving lunch and dinner, but the bar is now open and serves drinks and small snacks some nights. The eatery will be fully open again in September.
6. Tender Greens & Tocaya
One Table Restaurant Brands, which owns Tender Greens and Tocaya, filed for Chapter 11 bankruptcy on July 17. The company, which operates 24 Tender Greens locations in California and 15 Tocaya sites in California and Arizona, blamed the COVID-19 plague, rising interest rates, and rising costs for its financial problems.
CEO Harald Herrmann said that no matter how hard they tried, bankruptcy was the only way to fix the company’s debt and ensure the restaurants would remain open. One Table is currently looking for $3 million in financing from Breakwater Management LP so that it can keep running while it searches for a buyer.
7. Melt Bar & Grilled
Ohio-based Melt Bar & Grilled People know Melt Bar & Grilled for its fancy grilled cheese sandwiches. On June 14, the company filed for Chapter 11 bankruptcy. Rising prices of goods and labor and big changes in the service business have made things hard for the chain. Because of these things, it’s been hard for Melt to pay its vendors, renters, and service providers.
Melt recently closed two restaurants in Ohio, in Akron and Mentor. It now only has a few places left, including one at Progressive Field in Cleveland and another at Case Western Reserve University. The company also wants to close its Lakewood store for a while so that it can be fixed up and get a new look.
8. The Coastal Grill At Rubio’s
Rubio’s Coastal Grill is a chain of Mexican restaurants in California. On June 5, it filed for its second Chapter 11 bankruptcy, just a few years after its first bankruptcy during the COVID-19 pandemic. Rising costs, fewer customers, and California’s new $20 minimum wage for fast-food workers have all made the chain’s financial problems worse.
In May, Rubio’s closed 48 sites that weren’t doing well to improve its finances, but this wasn’t enough to keep the company from going bankrupt. In August, it was sold to its lender, The Original Fish Taco LLC, for $40 million. Even though it filed for bankruptcy, the chain still has 86 sites in California, Arizona, and Nevada.
9. Red Lobster
Red Lobster made a lot of news when it filed for Chapter 11 bankruptcy in 2024. It was one of the biggest seafood chains in the U.S. The chain had already closed many locations earlier in the year because of growing financial and practical problems, such as high food and labor costs and big losses. The Ultimate Endless Shrimp offer was one reason for this loss of $11 million.
Despite these problems, Red Lobster’s future looks better now that Fortress Investment Group has bought the chain out of bankruptcy. The new owners want to reduce sites and operations and fix the company’s long-standing money problems.
Conclusion
2024 was a very tough year for the food business. Many chains, from big national names to smaller regional ones, have had to file for bankruptcy because of problems caused by the pandemic, rising costs, and changing customer habits.
Some hope they can restructure and come out better, while others are dealing with big closures and debt. These well-known brands’ futures will depend on how well they can handle these financial problems and changes in the market.
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