The restaurant industry has taken quite a beating in recent years, and it appears 2024 is continuing that trend. Some chains have been unable to bounce back post-pandemic, while others face mounting financial hardships that leave them with no choice but to declare bankruptcy. Let’s take a closer look at the chains that are facing tough times and aiming to reorganize via bankruptcy this year.

1. Roti

The fast-casual Mediterranean chain Roti commenced 2024 with a Chapter 11 filing. Factors contributing to its downfall included soaring costs and inconsistent restaurant performance. Roti plans to carry on operations at its remaining locations while seeking new investors or buyers to help turn the tide.

2. World of Beer Bar & Kitchen

Once a fast-growing brand, World of Beer Bar & Kitchen has succumbed to financial pressures, filing for Chapter 11 in August. Debt, coupled with the impacts of the pandemic and mismanagement, led to the shuttering of 14 locations. The chain is now focusing efforts on its more profitable spots.

3. Buca di Beppo

Classic Italian chain Buca di Beppo entered the spotlight after filing for bankruptcy protection. Plagued by decreasing sales and staffing challenges, the company aims to optimize operations and will proceed with 44 core locations remaining open as it navigates through financial restructuring.

4. Gotham Restaurant

New York’s fine dining Gotham Restaurant has temporarily shut down after filing for Chapter 11, burdened with significant debt and financial missteps. Although meal services have halted, the establishment’s bar remains open, with hopes to resume full operations by September.

5. One Table Restaurant Brands

The parent company of Tender Greens and Tocaya, One Table Restaurant Brands, filed for bankruptcy in July. The pandemic and rising costs have fanned the flames of its financial woes. However, the company does not plan to close any locations and is focusing on restructuring and finding potential buyers.

6. Melt Bar & Grilled

Known for its gourmet grilled cheese, Melt Bar & Grilled filed for Chapter 11 in June. Citing the increased cost of goods and labor, the chain also announced closures in Akron and Mentor, Ohio. Melt will temporarily close its Lakewood location for renovations while attempting to stabilize finances.

7. Rubio’s

Rubio’s called it quits for the second time, citing rising costs and a new minimum wage law. Despite previous efforts to streamline operations, the chain announced its Chapter 11 filing in June and subsequently sold to The Original Fish Taco LLC.

8. Red Lobster

National seafood giant Red Lobster filed for Chapter 11 bankruptcy in 2024 after closing numerous locations and grappling with operational inefficiencies. The chain plans to improve operations and reduce its number of locations while seeking buyers for its assets.

9. Tijuana Flats

Facing nearly $19 million in debt, Tijuana Flats filed for bankruptcy protection in April. Following the sudden closure of several locations, a unit-by-unit performance assessment led to strategic restructuring under new ownership.

10. Boxer

Portland-based Boxer Ramen folded in May after posting its bankruptcy filing via Instagram in February. The chain cited pandemic difficulties and inflation as reasons for closing all four of its outlets. Its sister chain, SuperDeluxe, remains operational with reduced locations.

11. Sticky’s Finger Joint

New York-based Sticky’s Finger Joint filed for Chapter 11 in April. Beset by declining sales and high reliance on third-party deliveries, the chicken tender specialist is now down to 10 locations. Legal battles and low foot traffic have further strained its finances.

12. Popeyes Franchisee

Starting the year off in bankruptcy court, an RRG-operated Popeyes franchisee cited underperformance at three locations as the root of its financial woes. Struggling to ensure lease payments for profitable spots, the franchisee plans to close its weaker outlets while continuing overall operations.

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