Curt Whitesell’s Post

Restaurant Bankruptcies Reportedly at Highest Level Since Pandemic As was reported by PYMNTS today December 5, 2024 chain restaurant bankruptcies are reportedly at their highest level since the pandemic. Among the most recent examples is the casual dining franchise TGI Friday’s, one of more than a dozen high-profile eateries to seek bankruptcy protection between January and October of this year, Bloomberg News reported Thursday (Dec. 5), citing BankruptcyData. According to the report, that’s the most through that date since 2020, and next year could bring more turmoil, with restaurant prices jumping due to increased labor costs, supply chain issues and steeper interest expenses, lessening consumer demand for meals away from home. Bloomberg cited data from Black Box Intelligence showing that restaurant prices rose 44% between 2015 and March of this year, compared to a 26% uptick in grocery prices during the same timeframe. In addition to TGI Friday’s, the Italian chain Buca di Beppo, fish taco restaurant Rubio’s Coastal Grill, owner of burger and pizza chains BurgerFi and Anthony’s Coal Fired Pizza, and Red Lobster are all among companies seeking reorganization via bankruptcy in a year that has not been easy on the dining industry. And while global names like these are seeing sales fall, smaller restaurants are dealing with challenges of their own, like scaring up capital, Mitchell Hipp, divisional vice president at Rewards Network, said in an interview with PYMNTS posted earlier this week. “Most restaurants are undercapitalized to begin with, and it’s the #1 business that fails in the U.S.,” he said. Most small-to-mid-sized restaurants only have enough funding to remain open for six months, though they should — ideally — have the capital to keep running for a few years. Selected text is © PYMNTS, 2024. All Rights Reserved. Graphic is © Mark S. Mandula, CLO BCR Learning, 2024. All Rights Reserved.

Major Restaurant Chains That Have Closed Down Locations Across The U.S. In 2024 By Jack Kelly A mix of underperformance issues, financial pressures from inflation, strategic realignments, changing consumer trends and overall cost-cutting objectives have all contributed to the recent wave of location closures across several restaurant chains in 2024. Major chains including TGI Fridays, MOD Pizza, Outback Steakhouse and Applebee's cited “underperformance” as the main reason for closing certain restaurant locations. They are strategically shuttering stores that are not meeting sales and profit expectations. Other chains, like Boston Market, Red Lobster and Tijuana Flats, have closed locations due to severe financial troubles, unpaid bills, landlord disputes and even bankruptcy filings. Their closures are directly tied to efforts to cut costs and restructure amid money problems. Denny's specifically cited inflation-related challenges, like higher costs, as a factor forcing it to close 57 locations in 2023 and planning 10 to 20 more closures in 2024, according to a February earnings call. Some restaurant closures have been driven by shifts in customer preferences and dining behaviors that have made certain locations less viable. For chains facing financial headwinds, closing underutilized locations is a way to reduce costs and shore up their finances through restructuring. https://lnkd.in/ejK6k6gf

Read the newest article by Peter Romeo giving insight on restaurant closure trends. Peter, your continued expert take on the industry is essential for all operators! TAGeX Brands

Red Lobster, a popular seafood restaurant chain, is facing challenges and has announced the closure of numerous locations across the country. The company, struggling to stay afloat, revealed plans to auction off over 50 locations nationwide. TageX Brands, a restaurant liquidation company, will manage the sale of equipment from these closing locations. This marks TageX's largest restaurant equipment auction to date, although only 48 locations were specifically listed in their catalog. California will see the closure of five Red Lobster locations, while Florida will lose another five. Additionally, Colorado and Maryland will each bid farewell to four locations. TageX is selling these locations in their entirety, emphasizing that each winner of the auction will acquire the complete contents of the Red Lobster establishment they bid on. Earlier this year, reports surfaced about Red Lobster contemplating a bankruptcy filing to alleviate financial strains. According to sources familiar with the matter, discussions about potentially filing for Chapter 11 bankruptcy are ongoing. This move could help the company renegotiate leases, address long-term contracts, and manage escalating labor costs. Red Lobster appointed Jonathan Tibus as its new CEO in March. Tibus, known for his expertise in restructuring struggling restaurants, retail, and hospitality businesses, has spearheaded various successful restructuring initiatives in the past. This report includes contributions from Eric Revell of Fox News Digital.

Major Restaurant Chains That Have Closed Down Locations Across The U.S. In 2024  by Jack Kelly Forbes A mix of underperformance issues, financial pressures from inflation, strategic realignments, changing consumer trends and overall cost-cutting objectives have all contributed to the recent wave of location closures across several restaurant chains in 2024. Major chains including TGI Fridays, MOD Pizza, Outback Steakhouse and Applebee's Neighborhood Grill + Bar's cited “underperformance” as the main reason for closing certain restaurant locations. They are strategically shuttering stores that are not meeting sales and profit expectations. Other chains, like Boston Market, Red Lobster and Tijuana Flats Tex-Mex Flats, have closed locations due to severe financial troubles, unpaid bills, landlord disputes and even bankruptcy filings. Their closures are directly tied to efforts to cut costs and restructure amid money problems. Denny's specifically cited inflation-related challenges, like higher costs, as a factor forcing it to close 57 locations in 2023 and planning 10 to 20 more closures in 2024, according to a February earnings call. https://lnkd.in/ewJ9hU4H 

Once successful restaurant business going bust, you’re likely to see other restaurant chains going the same way. You can’t just rely on people walking through your doors to generate revenue. Why should we expect restaurateurs to do some creative things when they struggle to make their menus exciting? #restaurant #food

Red Lobster, a popular seafood restaurant chain, is facing challenges and has announced the closure of numerous locations across the country. The company, struggling to stay afloat, revealed plans to auction off over 50 locations nationwide. TageX Brands, a restaurant liquidation company, will manage the sale of equipment from these closing locations. This marks TageX's largest restaurant equipment auction to date, although only 48 locations were specifically listed in their catalog. California will see the closure of five Red Lobster locations, while Florida will lose another five. Additionally, Colorado and Maryland will each bid farewell to four locations. TageX is selling these locations in their entirety, emphasizing that each winner of the auction will acquire the complete contents of the Red Lobster establishment they bid on. Earlier this year, reports surfaced about Red Lobster contemplating a bankruptcy filing to alleviate financial strains. According to sources familiar with the matter, discussions about potentially filing for Chapter 11 bankruptcy are ongoing. This move could help the company renegotiate leases, address long-term contracts, and manage escalating labor costs. Red Lobster appointed Jonathan Tibus as its new CEO in March. Tibus, known for his expertise in restructuring struggling restaurants, retail, and hospitality businesses, has spearheaded various successful restructuring initiatives in the past. This report includes contributions from Eric Revell of Fox News Digital.

“When the industry experiences periods like this, it’s where you have to focus on the X’s and O’s of the business,” Jon Rolph, CEO of Thrive Restaurant Group, a large Applebee's Neighborhood Grill + Bar operator said. “It’s important to recognize the macro environment that you’re in, and then look at how you can win inside that environment. So, what’s important to us is making sure we’re out-operating our competitors, because when people cut back, they’re going to go to the establishments they trust the most.” https://lnkd.in/gchmrCUz

Another no surprise. Dining out even in lower cost family focused restaurants has become prohibitive for even small families today. Then should you try and stay in the restaurant business, try and find a bank willing to support you at a cost you can afford. The end result of Bidenomics in small business? https://lnkd.in/dFh36i-6 #bidenfailures #bidenomics #economy2024 #election2024

12 Restaurant Chains Closing Locations In 2024. A mix of underperformance issues, financial pressures from inflation, strategic realignments, changing consumer trends and overall cost-cutting objectives have all contributed to the recent wave of location closures across several restaurant chains in 2024. Restaurants simply don't have the staff to make it through normal shifts, and cutting back on open hours is truly necessary. But other times, business owners reduce hours just to cut costs, a defensive strategy that forfeits critical revenue in the process.