Buca di Beppo, an iconic Italian restaurant chain known for family-style dining and vintage décor, has abruptly closed 13 locations across the U.S.
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.
The Italian Dream
Buca di Beppo is a one-of-a-kind Italian restaurant that has been open for over thirty years.
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 Shutdown Shock
Many of Buca di Beppo’s employees, like Rozalyn Marc-Aurele who worked in Sacramento, were taken by surprise.
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.
Economic Crunch Hits Hard
According to a statement to the Daily Mail, Buca di Beppo cited that the closed locations couldn’t “recover from the damage caused by the pandemic and other market pressures.”
It’s a tough break for a chain that once boasted over 80 locations, as soaring food costs and operational expenses take their toll.
Eighteen Restaurants Closed in Total
Even though twelve of its restaurants have closed in the last month, this is in addition to the six that have closed so far this year.
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.
A Fall in Revenue
Over the last few years, Buca di Beppo has been struggling with its revenue. This is primarily due to a decrease in footfall in its restaurants.
The restaurant’s revenue for the first five months of 2024 was $74.8 million, 10% lower than the previous year.
A Thankful Goodbye
A poignant note left on the Sacramento restaurant’s door expressed gratitude to patrons: “We are thankful to you, our loyal guests, for giving us the opportunity to serve you.”
This message highlights the end of an era for establishments that had been community cornerstones since 1999.
Buca di Beppo Files for Chapter 11 Bankruptcy
A few days after Buca di Beppo announced it was closing several of its restaurants, the Italian restaurant chain filed for Chapter 11 bankruptcy.
All remaining locations will be restructured; however, the company also announced that it would open a new restaurant simultaneously.
A Rocky History
Since opening as a casual dining experience in Minneapolis in 1993, Buca di Beppo has had a few bumps in the road that have led it to where it is today.
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.
Acquired by Planet Hollywood
When Buca di Beppo was first starting out, it was in the basement in the bottom of an apartment building.
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.
Restaurants Will Operate as Usual
The restaurant chain has assured customers that its restaurants will continue to operate as usual. Gift cards, reservations and operational services are active and redeemable.
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.
Gift Cards Have Caused Debt
One issue for the company is its debt. It is currently around $10 million in debt, which is why it is filing for Chapter 11 bankruptcy.
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.
Who’s to Blame?
With the amount of money it owes to creditors, the company has blamed its financial problems on hiring difficulties and rising costs.
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.
Customers Are Struggling
The main issue for restaurants, including Buca di Beppo, is that customers are also struggling for money and choosing 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 Legacy of Italian Feasts
The Sacramento location was famed for its meatballs and shareable Italian dishes, a staple since its opening. “Just knowing this place has been open for so long and it’s closing … is a big deal,” former employee Jayden Seizmore shared with FOX40.
The impact of its closure resonates deeply with the local community.
The Final Day Shock
In a dramatic turn of events, employees like Jayden Seizmore were unaware of the impending closures until the very last day.
Workers reported to what they thought was a routine Monday, only to be met with news that would abruptly end their jobs.
Emergency Meeting Blues
An “emergency meeting” at 11 am was how some staff members discovered their job’s fate.
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.
Unnotified Until the End
In Florida, employees faced similar shocks.
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.
No Plans to Close Other Restaurants
As what might come as good news for employees and customers at other Buca di Beppo locations, the company currently has no plans to close any more of its restaurants.
However, this still hasn’t stopped its employees from feeling a little on edge because they worry about their job security.
Buca di Beppo’s Star-Studded History
Not just a family restaurant, Buca di Beppo has seen its share of glamour too.
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.
Charity at the Heart
In 2013, the Santa Monica location saw Sofia Vergara host “Meatballs 4 Ninos,” a charity event for St. Jude Children’s Research Hospital.
This event highlighted Buca di Beppo’s role in community and charitable efforts, now a poignant memory with the restaurant’s closure.
Nationwide Trend of Closures
The closure of Buca di Beppo locations mirrors a national trend, where even successful eateries face shutdowns due to external pressures.
A recent example includes a beloved breakfast spot in suburban Chicago that closed after 65 years due to a drastic rent increase.
Hopes for the Future
Buca di Beppo hopes that closing some of its restaurants and filing for Chapter 11 bankruptcy will benefit the restaurant.
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.
Reflecting on a Culinary Legacy
As Buca di Beppo scales down to 44 locations, the closures prompt a reflection on the changing landscape of dining in America.
The chain’s story from its 1993 beginnings in Florida to becoming a nationwide entity highlights the volatile nature of the restaurant industry today.
