6 Restaurants that Filed Bankruptcy in 2021 – FSR magazine

The companies, which operate Ryan's, Old Country Buffet, Tahoe Joe's Famous Steakhouse, HomeTown Buffet, Fire Mountain, and Furr's Fresh Buffet, turned to bankruptcy afterCOVID-19 significantly disrupted operations and severely limited demand.

Before the pandemic, the companies operated roughly 90 stores across 27 states.But as federal, state, and local governments implemented shelter-in-place orders, customer spending and foot traffic declined and the restaurants liquidity took a major hit. At the time of the filing,all of the stores had closed except six Tahoe Joes locations in California. Those six restaurants had a combined revenue of roughly $21 million per year before the pandemic.

As with almost every one of our peers, buffet restaurants took the brunt of the loss of sales during the pandemic and as such, the path to success requires hard choices to be made, including the rationalization of our overall footprint, said Jason Kemp, co-founder and CEO of VitaNova, a company that provided management services to the restaurants.

The precipitous decline in sales at the restaurants resulting from occupancy restrictions and the banning of family-style buffet dining forced the companies to take extraordinary steps, including the closing of multiple locations, he continued.

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6 Restaurants that Filed Bankruptcy in 2021 - FSR magazine