Popular fast-food chain closes dozens of locations

Restaurant chains have faced financial distress this year related to several factors, comparable to rising food prices consequently of inflation, increased interest rates, and changes in consumer spending habits.

The cruel economic impact on restaurants has led several to close locations and barely file for financial disaster.

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Related: Bankrupt pizza chain operator unloads dozens of restaurants

Struggling Pizza Hut operator EYM Pizza, which operates franchise locations in Illinois, Indiana, Ohio, Texas, and Wisconsin, filed its Chapter Eleven petition within the U.S. Economic ruin Court for the Eastern District of Texas on July 22 and hired brokerage National Franchise Sales to sell its 127 restaurants through its financial disaster case.

The Irving, Texas-based pizza franchisee had been sued by Yum Brands' (YUM) Pizza Hut after it stopped paying royalties when a forbearance period with its parent company ended.

Renowned Sonoma, Calif.-based chain Mary's Pizza Shack on Sept. 10 filed for Chapter 7 protection within the U.S. Economic ruin Court for the Northern District of California as section of a restructuring to be able to convert the business from a single corporation into smaller family-owned units.

Mary's Pizza Shack began its corporate restructuring in fall 2022, which resulted within the corporate closing 5 restaurant locations, though it should most probably reopen one location after eight months and continue operating 10 Northern California units.

BurgerFi International (BFI) , owner and franchisor of 100 and forty four burger and pizza restaurants nationwide, on 11th of September filed for Chapter Eleven financial disaster protection to reorganize after a turnaround plan that it implemented lower than a year ago failed to supply necessary results to forestall the filing.

Related: Struggling retailer closes more stores in Chapter Eleven financial disaster

The Fort Lauderdale, Fla., chain closed 19 underperforming corporate-owned locations and reduced related operating costs as section of its turnaround plan.

Dickey's closes eighty five locations in fiscal 2024

In the tip, fast-casual chain Dickey's Barbecue Restaurants has been closing locations nationwide since it peaked at 562 franchise units in 2017, closing a net of 205 locations since the origin of fiscal year 2018. The corporate, alternatively, has now not filed financial disaster and has now not indicated that it has the kind of plans.

Other than 2021, when the corporate reported 9 net openings to bring its franchise total up from 463 to 472 units, the corporate's franchise net total has plummeted every year, in accordance with its Franchise Disclosure Document reported by QSR.

Dickey's in its fiscal year ending May 31, 2024, reported the steepest decline in franchise restaurant units since its peak with eighty five net closures falling from 442 in 2023 to 357 in 2024. The corporate opened 12 franchised restaurants but additionally closed down 97.

More restaurant stories:

• Renowned Asian restaurant chain files for Chapter Eleven financial disaster
• Renowned fast-food chain owner files for Chapter Eleven financial disaster
• Renowned pizza chain files for Chapter 7 financial disaster

The corporate's franchise total had also fallen by 23 units from 465 in 2022 to 442 in 2023.

In an analogous approach to its 357 franchise locations, Dickey's has 9 corporate-owned locations in Texas and Oklahoma, plus 19 international units for a total of 385 restaurants.

The corporate had 19 franchise agreements signed but now not opened as of May 31. It reportedly expects to open four franchises in 2025.

Founded in 1941, the Dallas-based barbecue restaurant chain's menu features slow-smoked beef brisket, pulled pork, St. Louis-style ribs, polish sausage, spicy cheddar sausage, smoked turkey, and marinated chicken. Its home-style sides encompass baked beans, loaded baked potato casserole, fried okra, green beans with bacon, fries, mac and cheese, coleslaw, and potato salad.

It also offers brisket, pulled pork, turkey, chicken breast, sausage, and smoked meat and cheese sandwiches.

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