73-year-old family dining franchisee files Chapter 11 bankruptcy

The restaurant sector has faced declining sales and customer traffic in recent months, based on data from the National Restaurant Association, which has led operators to close locations and, in some cases, file for bankruptcy.

Data showed that 44% of restaurant operators reported lower same-store sales in November 2025, compared to only 35% of operators reporting lower same-store sales in October 2025.

The survey also showed that a lower percentage of operators had higher same-store sales in November, with 47% reporting, compared to 48% in October having higher sales.

Restaurants report lower customer traffic

Also, 51% of restaurant operators reported lower customer traffic in November 2025, up from 48% in October 2025. Only 30% of operators said customer traffic rose from November 2024 to November 2025, down from 33% reporting in October 2025.

The National Restaurant Association had not released December data at last check.

Financial distress has seriously affected a couple of breakfast restaurant chains, forcing them into bankruptcy.

The bankruptcy filings highlight the distress that restaurant chains face as consumers hesitate to spend on eating out.

First, economic issues led breakfast dining chain Taste of Belgium to close eight of its 11 restaurants in Kentucky and Ohio in the last two years and file for Chapter 11 protection on Jan. 6, 2025.

The restaurant chain now operates three locations in Cincinnati: Taste of Belgium – Rookwood at 3825 Edwards Road, Taste of Belgium – The Banks at 16 West Freedom Way, and Taste of Belgium – Findlay Market, 1801 Race Street, all in Cincinnati.

Taste of Belgium open locations:

• Taste of Belgium – Rookwood at 3825 Edwards Road, Cincinnati
• Taste of Belgium – The Banks at 16 West Freedom Way, Cincinnati
• Taste of Belgium – Findlay Market, 1801 Race Street, Cincinnati

Denny's franchisee files for bankruptcy protection

And now, Denny's restaurant franchisee DBJ US Corp. has filed for Chapter 11 bankruptcy protection to restructure its financial obligations, according to an RK Consultants bankruptcy alert.

The Miami Beach, Fla.-based operator of seven Denny's restaurant locations in South Florida filed its petition on Jan. 27 in the U.S. Bankruptcy Court for the Southern District of Florida but did not indicate a specific reason for filing its case.

DBJ US Corp. was incorporated in August 2018 and has operated as a Denny's franchisee for over seven years.

The debtor was recruiting service staff for its Miami Beach franchise operation as recently as six days before filing for bankruptcy, RK Consultants said.

The debtor is led by company President Javier Saavedra and employed 210 to 350 workers in 2025, according to the bankruptcy alert.

Denny's restaurant closings:

• 2024: 88 locations closed
• 2025: 70-90 locations closed

Denny's in 2024 said it would close over 150 restaurants nationwide, and closed 88 locations that year. The Spartanburg, S.C., dining chain said it would close another 70 to 90 restaurants in 2025.

DBJ US has not indicated whether it will close any of its seven franchise locations.

Denny's goes private

Denny’s announced on Nov. 3, 2025, that it would go private after it sold its assets to a group led by private equity firm TriArtisan Capital Advisors LLC, alternative asset investor Treville Capital Group, and one of Denny’s largest franchisees, Yadav Enterprises Inc., for about $620 million in an all-cash transaction.

“We are pleased to enter this transaction, which delivers significant, near-term and certain cash value to our stockholders,” Denny’s Corporation CEO Kelli Valade said in a statement.

Denny's sale closes

The purchase price represented a 52% premium to Denny’s closing stock price on Nov. 3, according to a statement. The transaction closed on Jan. 16, and Denny’s common stock is no longer listed on Nasdaq.

Denny's, founded in 1953, operates 1,459 global restaurants, consisting of 1,397 franchised and licensed restaurants and 62 company-operated locations, according to the company's website.

Related: Major retail chain closes 35 stores nationwide, no bankruptcy