Major Italian Restaurant Chain Abruptly Closes Multiple U.S. Locations, Blindsiding Employees

These include spots in California, Florida, Michigan and Pennsylvania. “It’s very disheartening to have everything come to an end,” lamented Rozalyn Marc-Aurele to FOX40, after serving the Sacramento community for over two decades.

Known for its range of Italian dishes and cocktails inspired by Italy, as well as its unique decor, it is a place many people have enjoyed going to for a meal for years.

The closures, she revealed to FOX40, came without any forewarning, leaving staff blindsided and distressed. This sudden move adds to a growing list of restaurant closures fueled by economic strains.

It’s a tough break for a chain that once boasted over 80 locations, as soaring food costs and operational expenses take their toll.

This means that eighteen restaurants closed in the first half of 2024, and employees are already worried about what the rest of this year will bring.

The restaurant’s revenue for the first five months of 2024 was $74.8 million, 10% lower than the previous year.

This message highlights the end of an era for establishments that had been community cornerstones since 1999.

All remaining locations will be restructured; however, the company also announced that it would open a new restaurant simultaneously.

This includes being investigated for fraud in 2005, with the chief executive officer, chief financial officer and controller pleading guilty to stealing hundreds of thousands of dollars from the company.

After 15 years in business, Planet Hollywood International bought the restaurant in 2008. This company is owned by Earl Enterprises Corporation, which bought it for $28.5 million.

However, the bankruptcy claim named 30 creditors to whom Buca di Beppo owes $50 million. This comes after a string of financial struggles for the brand.

However, Buca di Beppo has said that at least $1.36 million of this debt is from gift cards. This is due to customers who brought the gift cards but did not redeem them.

Many restaurants have been facing these issues due to the rising cost of living. As food costs more, restaurants have to raise their prices. As customers struggle to afford these prices, they choose to eat elsewhere.

For the most part, customers are moving away from fast-food and casual dining restaurants altogether and are making their food at home instead to save as much money as possible.

The impact of its closure resonates deeply with the local community.

Workers reported to what they thought was a routine Monday, only to be met with news that would abruptly end their jobs.

This method of announcement added to the emotional toll on the staff, many of whom cherished their roles and the unique experience of working at Buca di Beppo.

The Colonie location, a fixture for 24 years, closed doors without prior notice to the staff, echoing a disturbing trend of abrupt terminations within the company.

However, this still hasn’t stopped its employees from feeling a little on edge because they worry about their job security.

Hollywood’s Sylvester Stallone once bought a location, and the chain has been under the Planet Hollywood umbrella since 2008, adding a dash of celebrity to its homely charm.

This event highlighted Buca di Beppo’s role in community and charitable efforts, now a poignant memory with the restaurant’s closure.

A recent example includes a beloved breakfast spot in suburban Chicago that closed after 65 years due to a drastic rent increase.

While Rich Saulz, the company’s president, has said that the restaurant industry has been going through difficult times in the last few years, he recognizes that this is a necessary step for his brand to take to try and secure its future.

The chain’s story from its 1993 beginnings in Florida to becoming a nationwide entity highlights the volatile nature of the restaurant industry today.