Multiple popular restaurant chains filed for bankruptcy in 2024, shocking many Americans in the process. Analysts have since warned that Chapter 11 filings may only continue to surge before the year’s end, shedding light on the issues the restaurant industry is facing.
The popular Mexican chain cited increased food costs as reasons for filing. Rubio’s also claimed that California’s minimum wage hikes, which raised fast food workers’ wages to at least $20 an hour, were also to blame for this Chapter 11 filing. Only several days before this bankruptcy filing, Rubio’s shut down 48 locations in California
The Italian American chain Buca di Beppo declared bankruptcy in August. According to the popular company, rising food costs and various labor challenges ultimately led to this filing.
Various reasons have been given for why this beloved American restaurant chain has found itself in this position. Some analysts have pointed to 2023’s “endless shrimp” promotion, while others have claimed that the company’s lease-back agreement made Red Lobster’s restaurant leases much too expensive.