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These 10 restaurant chains filed for bankruptcy this year

These 10 restaurant chains filed for bankruptcy this year

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The Red Lobster logo is displayed outside of a closed restaurant in Torrance, California, on May 14, 2024.

Patrick T. Fallon | Afp | Getty Images

Restaurant bankruptcy filings have surged so far this year, echoing a broader rise in corporate bankruptcies across sectors.

At least 10 restaurant chains, not including multi-unit franchisees, have filed for bankruptcy in 2024. August alone brought three Chapter 11 filings from notable eateries. The increase in bankruptcies comes as diners pull back their spending, labor costs keep rising and Covid-era government help disappears.

Several more restaurant chains could file for bankruptcy before the end of the year. BurgerFi, which also owns Anthony’s Coal Fired Pizza & Wings, said in a regulatory filing in mid-August that there is “substantial doubt” about the company’s ability to operate. Others, such as Mod Pizza, have narrowly avoided bankruptcy through a last-minute sale.

Restaurants are not the only companies seeking bankruptcy protection as high interest rates weigh on businesses. Chapter 11 filings have climbed 49% this year as of Aug. 20, according to BankruptcyWatch. Mall retailer Express, nursing home chain LaVie Care Centers and Joann Fabrics and Crafts are among the companies that have filed for bankruptcy protection this year.

Here are the 10 notable restaurant chains that filed for bankruptcy protection in 2024:

Roti

Buca di Beppo

World of Beer

Rubio’s

Rubio’s Restaurants filed for Chapter 11 bankruptcy protection in June. The fast-casual chain, known for its fish tacos, had 86 locations at the time across California, Nevada and Arizona.

The company said rising food and utility costs, the shift to hybrid work cutting lunchtime traffic and minimum wage hikes in California put too much pressure on some of its restaurants.

In April, California raised its minimum wage for fast-food workers at chains with more than 60 locations to $20 an hour. Several days before it filed for bankruptcy, Rubio’s closed 48 underperforming restaurants in California.

In August, Rubio’s agreed to a sale to an affiliate of TREW Capital, one of its lenders.

The restaurant company previously filed for Chapter 11 bankruptcy in 2020.

Melt Bar & Grilled

Kuma’s Corner

Red Lobster

Seafood giant Red Lobster filed for bankruptcy protection in May, citing a “difficult macroeconomic environment, a bloated and underperforming restaurant footprint, failed or ill-advised strategic initiatives, and increased competition.”

One scapegoat for its insolvency was its disastrous “endless shrimp” promotion in 2023. But a less-obvious culprit was a lease-back agreement made under a prior owner that made Red Lobster’s leases too expensive, especially as sales fell.

On Tuesday, the investment group buying Red Lobster tapped former P.F. Chang’s CEO Damola Adamolekun as the company’s next leader if it exits Chapter 11 successfully.

Tijuana Flats

Sticky’s Finger Joint

Boxer Ramen



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