These 10 restaurant chains filed for bankruptcy this year

Restaurant Bankruptcies Surge in 2024 #

Chapter 11 bankruptcy filings have increased this year, affecting the restaurant industry. At least 10 restaurant chains have filed for bankruptcy protection excluding franchisees. Red Lobster, Buca di Beppo, and Roti are among the notable names filing for Chapter 11 bankruptcy. Restaurant bankruptcies are rising along with overall corporate bankruptcies. The increase is attributed to reduced consumer spending, rising labor costs, and the waning government support amid the COVID-19 pandemic. More restaurant chains are expected to file for bankruptcy by year-end. Some, like BurgerFi and Mod Pizza, narrowly avoided bankruptcy through last-minute sales. The trend can also be seen in other sectors with higher interest rates leading to a 49% increase in Chapter 11 filings this year.