Restaurant chains that filed for bankruptcy this year

Restaurant bankruptcy filings have risen so far this year, reflecting a broader rise in corporate bankruptcies across all sectors.

At least 10 restaurant chains, not including multi-unit franchises, have filed for bankruptcy in 2024. In August alone, three major restaurants filed for Chapter 11 bankruptcy. The surge in bankruptcies comes as diners cut back on spending, labor costs continue to rise and COVID-era government aid fades.

Several more restaurant chains could file for bankruptcy before the end of the year. burger fiwhich 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 thanks to a last-minute sale.

Restaurants aren’t the only businesses filing for bankruptcy protection as high interest rates weigh on businesses. Chapter 11 bankruptcy filings have increased 49% this year through Aug. 20, according to BankruptcyWatch. Retail chain 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 10 notable restaurant chains that have filed for bankruptcy protection in 2024:

Mediterranean fast-casual chain Roti filed for Chapter 11 bankruptcy protection on Aug. 23. The company said it is working with its landlords and suppliers to keep its 22 locations open while it looks for a new buyer or investors.

The company began to struggle during the Covid-19 pandemic because about half of its locations were in downtown shopping districts, Chief Executive Justin Seamonds said in a statement at the time of the bankruptcy filing. New investors helped it stay afloat, but the recent slump in consumer spending pushed it into insolvency.

Roti had raised $58 million as of June, according to Pitchbook.

Buca di Beppo filed for bankruptcy on August 5. The Italian-American chain will keep 44 of its locations open while it restructures and also plans to open another restaurant.

The company blamed its financial difficulties on rising costs and labor challenges, according to court documents.

Buca di Beppo was founded in 1993 and sold to Planet Hollywood in 2008 following an accounting scandal involving some of its top executives.

The World of Beer chain of pubs filed for bankruptcy on August 2. The company blamed high interest rates, inflation and a slow return to pre-pandemic eating habits.

World of Beer plans to restructure and terminate leases at underperforming locations through bankruptcy.

The company was founded in 2007, when the popularity of craft beer was on the rise. Today, craft beer sales have fallen because consumers in general drink less.

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

The company said rising food and utility costs, a shift to hybrid work that reduces lunchtime traffic and minimum wage increases in California are putting too much pressure on some of its restaurants.

In April, California raised the minimum wage to $20 an hour for workers at fast-food chains with more than 60 locations. Several days before filing 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 filed for Chapter 11 bankruptcy in 2020.

In June, the Cleveland-based chain said it was having trouble paying its suppliers and landlords. It filed for Chapter 11 bankruptcy to save the business.

The company, known for its grilled cheese sandwiches and craft beer offerings, was founded in 2006. It had 14 locations at its peak, but its presence had dwindled to four restaurants by the time of its bankruptcy filing.

Kuma Holdings, the parent company of Kuma's Corner, filed for bankruptcy in June.

The Midwestern burger chain opened its first location in 2005, setting itself apart from the competition with its metal- and punk-themed menu items.

Seafood giant Red Lobster filed for bankruptcy 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 leaseback deal made under a previous owner that made Red Lobster’s rents too expensive, especially as sales fell.

On Tuesday, the investment group that bought Red Lobster chose Damola Adamolekun, former chief executive of PF Chang, as the company's next leader if it successfully emerges from Chapter 11.

In April, Tijuana Flats announced new ownership, a Chapter 11 bankruptcy filing, and the closure of 11 restaurants in a single press release.

AUA Private Equity Partners has sold the Tex-Mex fast food chain to Flatheads LLC as part of the restaurant company's restructuring.

The chain was founded in 1995.

Chicken strip chain Sticky's Finger Joint also filed for bankruptcy in April. Rising raw material costs, fallout from the pandemic and legal expenses from a trademark case brought by rival Sticky Fingers led the company to restructure.

Sticky's was founded in 2012. As of 2023, it had annual sales of $22 million, according to a court filing.

The Portland, Oregon-based ramen chain filed for bankruptcy in February. In late April, it abruptly closed all four of its locations, more than a decade after it was founded.