Struggling fast-food chain closes dozens of locations

Restaurant chains have faced financial distress this year related to a few factors, such as rising food prices as a consequence of the inflation, increased interest rates, and changes in consumer spending habits.

The cruel economic impact on restaurants has led a few to shut locations and infrequently file for economic ruin.

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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 11 petition contained in the U.S. Financial ruin Court for the Eastern District of Texas on July 22 and hired brokerage National Franchise Sales to sell its 127 restaurants through its economic ruin 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.

Well known Sonoma, Calif.-based chain Mary's Pizza Shack on Sept. 10 filed for Chapter 7 protection contained in the U.S. Financial ruin Court for the Northern District of California as a part of a restructuring with the intention to remodel the business from a single corporation into smaller family-owned units.

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

BurgerFi International (BFI) , owner and franchisor of One hundred forty four burger and pizza restaurants nationwide, on eleventh of September filed for Chapter 11 economic ruin protection to reorganize after a turnaround plan that it implemented lower than a year ago did not produce necessary results to forestall the filing.

Related: Struggling retailer closes more stores in Chapter 11 economic ruin

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

Dickey's closes 85 locations in fiscal 2024

At last, fast-casual chain Dickey's Barbecue Restaurants has been closing locations nationwide because it peaked at 562 franchise units in 2017, closing a net of 205 locations it is able to well be because starting place of fiscal year 2018. The company, alternatively, has now now not filed economic ruin and has now now not indicated that it has any such plans.

Aside from for 2021, when the corporate reported nine net openings to bring its franchise total up from 463 to 472 units, the corporate's franchise net total has plummeted annually, in keeping 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 85 net closures falling from 442 in 2023 to 357 in 2024. The company opened 12 franchised restaurants but also closed down ninety seven.

More restaurant stories:

• Well known Asian restaurant chain files for Chapter 11 economic ruin
• Well known fast-food chain owner files for Chapter 11 economic ruin
• Well known pizza chain files for Chapter 7 economic ruin

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

Along with its 357 franchise locations, Dickey's has nine corporate-owned locations in Texas and Oklahoma, plus 19 international units for a complete of 385 restaurants.

The company had 19 franchise agreements signed but now 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 consist of 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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