Another popular pizza chain files Chapter 11 | Global Market News
Pizza restaurant homeowners have handled a number of financial challenges for the reason that Covid-19 pandemic which have precipitated financial misery requiring operators to typically close places, promote eating places, and file for chapter safety.Competition for the pizza greenback is gigantic, because the quantity of pizza eating places within the U.S. in 2024 amounted to over 74,000. On prime of fierce competitors, restaurant homeowners have confronted rising labor and food prices pushed by inflation that has cut deep into their earnings. 💵💰Don’t miss the transfer: Subscribe to TheAvenue’s free every day publication💰💵Food prices elevated by an average of 29%, and labor prices rose by 31% from 2019 to 2024, in keeping with the National Restaurant Association. Menu costs adopted this pattern, as average costs elevated by 27.2% from February 2020 to June 2024.Related: Huge burger chain franchisee files for Chapter 11 bankruptcyConsumers have change into more reluctant to eat out at eating places as they watch their budgets in these unsure inflationary instances. Those rising menu costs are a massive cause why many are staying at home and sliding a frozen pizza into the oven as a substitute of taking a journey to the pizza parlor.Major national pizza chain franchisees have been closing and promoting eating places, typically submitting for chapter, as nicely.National pizza chain franchisees file for chapterHuge Pizza Hut franchisee EYM Pizza L.P., which at one time operated 142 Pizza Hut places in Georgia, Illinois, Indiana, South Carolina, and Wisconsin, filed for Chapter 11 chapter safety in July 2024 and bought 77 of its eating places at a chapter public sale.
The franchisee mentioned it might close one other 50 places that it was not in a position to promote.Global pizza chain Domino’s largest franchisee, Domino’s Pizza Enterprises, in February 2025 mentioned it is going to shut down 205 low-performing places, which is able to embrace 172 models in Japan “to sharpen market focus and improve profitability.”Domino’s Pizza Enterprises mentioned it is going to conduct location closings from April 2025 to June 2025 and expects to avoid wasting about $9.72 million yearly with a one-time value of $60.8 million.Another Domino’s Pizza franchisee in Yorba Linda, Calif., People First Pizza Inc.,filed for Chapter 11 chapter safety to reorganize its business, going through over $500,000 in disputed claims. The franchisee plans to proceed working the restaurant.
Bertucci’s Brick Oven Pizza & Pasta files for Chapter 11 reorganization.Shutterstock
Bertucci’s files for Chapter 11 chapter Iconic East Coast pizza chain Bertucci’s Restaurants LLC, which operates 16 places in six states, filed for Chapter 11 chapter safety for the third time in seven years to reorganize its business.Related: Popular breakfast chain franchise files for Chapter 11 chapter The debtor, which operates Bertucci’s Brick Oven Pizza & Pasta eating places in Massachusetts, Pennsylvania, Delaware, (*11*), Maryland, and Virginia, had 31 places when it final filed for chapter in December 2022, however has closed 15 models for the reason that submitting. Bertucci’s filed for chapter the primary time, in search of to promote its belongings in April 2018, Nation’s Restaurant News reported.More bankruptcies:
Earl Enterprises, the mother or father company of Planet Hollywood, acquired Bertucci’s for $20 million in a June 2018 chapter sale. The Orlando, Fla.-based debtor listed $10 million to $50 million in belongings and money owed, with its largest unsecured creditor, Cost Control Associates, owed over $630,000, in keeping with its petition filed on April 24 within the U.S. Bankruptcy Court for the Middle District of Florida.Related: Major retail food model files for Chapter 11 chapter
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