Restaurant Management Recruiting
Bankruptcies continued to plague the restaurant industry well into 2021. They impacted not only full-service restaurants and casual dining, but also fast-food chains. Many brands that survived 2020 struggled to find their footing in 2021. This was due to ongoing COVID-19 restrictions and dwindling sales. Supply chain woes and changing consumer behavior. Many brands were forced to fold due to mounting debts. They sought protection through a Chapter 11 filing or found an investment company that would buy them out of bankruptcy.
Although not as many or as 2020's bankruptcies- which affected brands such as Chuck E. Cheese and Le Pain Quotidien--2021 had more restaurant downfalls than its fair share.
Cici's was sold and D&G Investors purchased it
Cici's Pizza was already showing signs of decline long before the pandemic. The Texas chain's total sales fell by about 10% between 2017 and 2019. It dropped from $443.3 to $393.9 million. Cici's 2020 revenue dropped by $100 million. This led to a $2.7 million net loss. In late January, the chain filed bankruptcy and announced that it was transferring its ownership to D&G Investors. The new parent company is attempting to bring the chain back to its glory.
A major Jack in the Box franchise was dissolved
Jack in the Box may not have done well during the pandemic (the company recently reported sales growth of 13.1% this year). It's different for each region. Conquest Foods LLC, a St. Louis-based franchise, is a good example. The company with 70 employees filed for bankruptcy along with two affiliate groups in February. They sought Chapter 11 debt protection and declared liabilities between $10 million to $50 million.
Golden Corral's second-largest franchisee nosedived
The pandemic hit Golden Corral like other buffet restaurants. In 2020, the chain's largest franchisee declared bankruptcy and closed several locations. The second-largest franchisee, Platinum Corral, declared bankruptcy in April 2021. The 28-restaurant company owed $49.4million at the time of filing. $6.7 million was due in loan repayments to the Paycheck Protection Program.
Casa Bonita went downhill
The pandemic decimated casual dining as well as full-service restaurants. The fan-favorite Casa Bonita also was among the victims. A popular Colorado establishment--offering its patrons a unique combination of casual dining and tropical-themed live entertainment--the restaurant was forced to close at the start of the pandemic. The parent company filed for Chapter 11 protection in April 2021. It declared bankruptcy shortly after. In its filing, it revealed that it had $4.4million in liabilities and $3.7 million in assets. The happy ending was that the restaurant was purchased by South Park's creators.
The creditors had problems with the meatheads parent company
Chicago-based hamburger chain Meatheads had an uneventful 2021. Its parent company Craves Brands filed for Chapter 11 bankruptcy in early April. However, one of Crave Brand's principal creditors challenged the filing, claiming Crave had filed only for protection to "keep in control". Since then, the companies reached a deal. Crave Brands has ended its bankruptcy filing and is resuming operation as the Meatheads franchise.
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