The fast-casual dining sector continues to face significant challenges, with a series of economic factors leading to the closure of hundreds of restaurants and a rising number of Chapter 11 bankruptcy filings.
Over the past five years, restaurants have been hit by a range of hardships, starting with the Covid-19 pandemic, which forced widespread closures and triggered a shift to take-out and delivery models. Once restrictions eased, the industry faced a new set of challenges, including inflation, which led to higher labor and food costs. Rising interest rates further exacerbated financial pressures, pushing several restaurant chains into bankruptcy.
One such casualty is EYM Pizza, a franchisee that operated 142 Pizza Hut locations across Georgia, Illinois, Indiana, South Carolina, and Wisconsin. On July 22, 2024, the company filed for Chapter 11 bankruptcy protection in the Eastern District of Texas, seeking to sell its assets. As part of the restructuring process, EYM Pizza sold 77 of its locations to six different buyers and shut down the remaining 65 sites that could not be sold.
In Texas, a franchisee of Marco’s Pizza in Austin and Round Rock filed for Chapter 11 bankruptcy on February 3, 2025, in a bid to reorganize its business. This filing follows a similar move by Tampa Bay franchise owners Terry Burkholder and Ben Finley, who, in November 2024, sought Chapter 11 protection for their 19 Marco’s Pizza locations, planning to reorganize and divest underperforming restaurants.
Fired Pie, a fast-casual pizza chain, also filed for Chapter 11 protection on November 13, 2024, in the U.S. Bankruptcy Court for the District of Arizona, hoping to restructure its business.
The financial strain is not limited to pizza chains. Tijuana Flats, a fast-casual Tex-Mex chain, filed for Chapter 11 on April 19, 2024, in the U.S. Bankruptcy Court for the Middle District of Florida, ultimately selling the company to a new ownership group and closing 11 locations. Similarly, Rubio’s Coastal Grill, based in Carlsbad, California, filed for Chapter 11 on June 5, 2024, in the District of Delaware, aiming to restructure its debt.
The latest addition to the list of chains seeking Chapter 11 protection is The Biscuit Bar, a popular fast-casual restaurant based in Plano, Texas. On February 6, 2025, the company filed in the U.S. Bankruptcy Court for the Northern District of Texas, hoping to reorganize its business amid ongoing financial distress. The Biscuit Bar operates six biscuit sandwich locations and is now focused on restructuring its debt to stabilize its operations.
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