9 Restaurant Chains Might Go Out of Business in 2024
There has always been a lot of risk in the food business, and now it’s even more clear. Costs are going up, customers’ habits have changed since the pandemic, and inflation is still going strong, making it hard for many restaurants to stay open.
Some have gone bankrupt to get their earnings back on track and keep their businesses running. Many big and small chains have closed shops to save money because of these changes. These are the food companies that have gone bankrupt in 2024.
A company called BurgerFi International, Inc. filed for Chapter 11 bankruptcy on September 11. This company owns both BurgerFi and Anthony’s Coal Fired Pizza & Wings. This is what the company did: “preserve the value of its brands for stakeholders.”
The company had said in August that it might file for bankruptcy because it was having a hard time with money. Between $100 million and $500 million is what BurgerFi pays, and between $50 million and $100 million is what it owns.
Even though the economy is bad, Jeremy Rosenthal, BurgerFi’s chief restructuring officer, said that customers still like both BurgerFi and Anthony’s Coal Fired Pizza & Wings. He did say, though, that the company had been hit hard by falling sales after the pandemic, higher prices, and the cost of food and labor going up. The business will get back on track by filing for bankruptcy.
Roti, a Mediterranean fast food chain, filed for Chapter 11 bankruptcy on August 23. The main reasons the company went bankrupt were money issues, like rising prices and restaurants that didn’t always do well. Roti also had to deal with a tough market, which affected its choice.
In 2018, Roti closed a lot of stores and saw a drop in system sales. However, the company still plans to run its 19 restaurants in Chicago, Minneapolis, and Washington, D.C.
This was done to help the business get its finances back on track, find new partners, or even a buyer. Tony Seamonds, the CEO, told regulars that Roti would still be open at this time.
World of Beer Bar & Kitchen used to be one of the eating places in the country that grew the fastest. The company ran out of money in 2024, though. Only 33 shops were left in the chain after it filed for Chapter 11 bankruptcy in August. Most of them were in the southeast.
The company said it failed because partners’ bad management decisions, court battles, and the effects of the pandemic on society as a whole caused its debt to grow over the years. To get back on track, World of Beer is reorganizing its sites and putting more attention on the ones that are most important to it.
In July, the well-known Italian-American restaurant chain Buca di Beppo shut down 13 locations, which made the news. The company soon after filed for Chapter 11 bankruptcy. Things are going badly for Buca di Beppo sales are down, costs are going up, there aren’t enough workers, and customers choose different foods.
The company wants to use bankruptcy to make its business better and to make people feel better about it.
Buca di Beppo is having money problems, but it will still run its 44 main locations and is hoping to open another one. Our goal is to be better and more able to handle change when we get out of bankruptcy.
After 40 years, New York City’s well-known Gotham Restaurant closed on July 24. It asked to go bankrupt under Chapter 11. There are almost $500,000 in debts at the fancy diner. A big chunk of that goes to the New York State Department of Taxation and Finance.
A recent computer scam cost Gotham $45,000, which co-owner Cassandra Csencsitz said was a big setback for a business that was already having a hard time.
For a short time, lunch and dinner were no longer served at the diner. However, the bar is now open and serves drinks and small snacks some nights. In September, the restaurant will be open for business as usual.
Chapter 11 bankruptcy was filed by One Table Restaurant Brands on July 17. This company owns Tender Greens and Tocaya. The COVID-19 plague, rising interest rates, and rising costs were to blame for the company’s money problems. The company runs 24 Tender Greens locations in California and 15 Tocaya locations in California and Arizona.
The CEO, Harald Herrmann, said that they could not avoid bankruptcy no matter how hard they tried. He also said that the restaurants would stay open. The company One Table is trying to get $3 million from Breakwater Management LP so that it can keep running while it looks for a buyer.
Ohio-based Grilled and a melt bar Melt Bar & Grilled is known for its fancy grilled cheese sandwiches. The business turned to Chapter 11 bankruptcy on June 14.
The chain is having a hard time because of the changes in the service business and the rising costs of goods and wage. It’s been hard for Melt to pay its renters, vendors, and service providers because of these things.
Melt just shut down two stores in Ohio: one in Akron and one in Mentor. There are now only a few spots left, one at Cleveland’s Progressive Field and one at Case Western Reserve University. The Lakewood store will also be closed for a while so that it can be made up and given a new look.
The Mexican restaurants in California are all part of the Rubio’s Coastal Grill group. One year ago, on June 5, it filed for its second Chapter 11 bankruptcy. The first bankruptcy was because of the COVID-19 outbreak. Loss of customers, higher prices, and California’s new $20 minimum wage for fast food workers have all made the chain’s money problems worse.
The company closed 48 locations that weren’t doing well in May to save money, but it wasn’t enough to keep it from going out of business. For $40 million, it was sold in August to the company that lent money to it. The chain still has 86 locations in California, Arizona, and Nevada, even though it filed for bankruptcy.
When Red Lobster filed for Chapter 11 bankruptcy in 2024, it got a lot of attention. The business was one of the largest in the United States. The chain had already closed a lot of locations earlier this year because of problems with money and operations, like high costs for food and workers and big losses. One reason for this $11 million loss was the Ultimate Endless Shrimp offer.
The future looks better for Red Lobster now that Fortress Investment Group has bought the chain out of bankruptcy, even with these issues. The company has been having money problems for a long time, and the new owners want to fix them by cutting down on sites and activities.
The food business had a very bad year in 2024. The pandemic, rising costs, and changes in customer habits have led a lot of chains, from big national chains to smaller regional chains, to have to file for bankruptcy.
Some think they can reform and do better, while others have had to close down and are now in debt. A lot will depend on how well these well-known names can deal with these money troubles and changes in the market.
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