From CNBC: 2024-09-01 07:00:01

Restaurant bankruptcies are on the rise in 2024, with multiple chains filing for Chapter 11, including Red Lobster, Buca di Beppo, and World of Beer. Factors include reduced consumer spending, rising labor costs, and the end of government assistance. Mall retailer Express and nursing home chain LaVie Care Centers also faced bankruptcy this year.

Notable restaurant chains like Roti and Rubio’s have also filed for bankruptcy protection due to financial challenges. California’s minimum wage increase and shifting consumer habits have added pressure. Melt Bar & Grilled, Kuma’s Corner, and Boxer Ramen are among the other dining establishments that have sought Chapter 11 to restructure.

Red Lobster’s bankruptcy in May cited various factors contributing to financial strain, including failed promotions and costly lease agreements. Tijuana Flats, Sticky’s Finger Joint, and Boxer Ramen have also faced bankruptcy due to rising costs and other challenges. Bankruptcy filings across industries have increased by 49% this year, affecting various companies beyond the restaurant sector.



Read more at CNBC: Restaurant chains that filed for bankruptcy this year