Popular Italian Restaurant Chain Just Filed For Bankruptcy
This year has been filled with numerous restaurant bankruptcy filings, and yet another one just got added to the list. About a week after closing 13 underperforming locations, Italian restaurant chain Buca di Beppo announced that it has filed for Chapter 11 bankruptcy.
In a press release, the company said this move is "aimed at optimizing operations and enhancing the dining experience."
According to the filing, Buca di Beppo owes at least $15 million to $50 million to at least 30 creditors, as reported by Nation's Restaurant News. The chain said it's been affected by decreasing sales, rising costs, ongoing staffing challenges, and changes in consumer preferences.
The brand noted that it will be "restructuring" its 44 core locations and expects operations to continue uninterrupted. Gift cards, reservations, and promotional services are still active and redeemable. Buca di Beppo is also developing one additional location.
"This is a strategic step towards a strong future for Buca di Beppo. While the restaurant industry has faced significant challenges, this move is the best next step for our brand," Rich Saultz, president of Buca di Beppo, said in a press release. "By restructuring with the continued support of our lenders, we are paving the way toward a reinvigorated future."
The chain's 13 recent restaurant closures were locations that couldn't recover from pandemic and other market pressures, according to a statement previously shared with Eat This, Not That! Some of the recently closed restaurants included locations in Sacramento, Calif.; Salt Lake City and Midvale, Utah; Livonia and Utica, Mich.; Springs Township, Pa; and Colonie, N.Y. Now, the Italian restaurant chain no longer has restaurants in New York, Pennsylvania, or Michigan.
Buca di Beppo was founded in Minneapolis in 1993 and is known for its family-style portions. The chain has restaurants across 14 states, plus two international locations in the Philippines.
Buca di Beppo is just one of several restaurant chains that have recently filed for bankruptcy protection. Last month, One Table Brands LLC, the parent company of salad chain Tender Greens and Mexican chain Tocaya, filed for Chapter 11 bankruptcy. The company primarily blamed the pandemic as the impetus behind the bankruptcy, according to Restaurant Business Magazine. Despite the recent filing, One Table Brands doesn't plan to close any locations for either chain.
A few other chains to recently file for bankruptcy include Melt Bar & Grilled, Rubio's Coastal Grill, and Tijuana Flats.
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