Old Country Buffet has been a united states strip mall staple for a long time. At one point the sole thing Americans loved greater than eating, was eating at a buffet. But in the 21st century, inspite of the promise of delicious cheese biscuits awaiting you behind those ubiquitous red letters, Old Country Buffet has definitely had some setbacks. And we are not just speaking about broken froyo machines at the lunch rush.
The owner of hometown buffet restaurant as well as other buffet dining chains filed on Monday for Chapter 11 bankruptcy, blaming a lawsuit which was not disclosed when its current owner bought the businesses in August.
Buffets LLC, an online affiliate of Food Management Partners, in August paid an undisclosed amount for your chains Old Country Buffet, Ryan’s, Fire Mountain and Tahoe Joe’s, along with HomeTown, according to Food Management Partners’ website.
Those chains, which operate 150 restaurants, were portion of the bankruptcy filing on Monday, in accordance with court documents. The firm that sold the restaurant chains in August failed to disclose a pending lawsuit, which resulted in an $11.4 million judgment, in accordance with a statement from Peter Donbavand of San Antonio, Texas-based Food Management Partners.
He also said the chains have observed sharp drops in sales he considered unusual. The statement did not say who sold the businesses to Food Management Partners, along with a spokeswoman would only say it had been “private equity.”
The organization said sales have fallen 22 percent lacking the seller’s projections, prompting the closure of 74 stores in recent weeks and the other 92 in the next ten days. Buffets LLC as well as the chains work underneath the Ovation Brands name.
It had been the third filing since 2008 years for that restaurant chains, which previously entered bankruptcy known as Buffets Inc. The chains listed assets worth up to $50 million and liabilities as high as $100 million, in accordance with documents filed inside the U.S. Bankruptcy Court for the Western District of Texas.
Buffets Inc as well as the Ryan Restaurant Group merged in 2006 to create the largest U.S. buffet chain. At the begining of 2008, however, the company filed for Chapter 11 bankruptcy to shed some of its 626 locations and cut its debt by $700 million. The business returned to bankruptcy in 2012, this time around to slim its reach from 494 restaurants.
Unfortunately for businesses like Old Country Buffet, buffets are often synonymous with obesity. Anyone who’s attempting to shed some pounds might see images of endless bins of greasy food being a straight-up recipe for fatness, so most likely, they’re staying away.
As well as any diet-conscious individual that does eat at Old Country Buffet will probably cost the chain money, so that’s not any better. Buffets have the ability to cut costs by focusing on the behavioral psychology of how we eat out at hometown buffet menu with prices. As an example, more canbhp protein things like fish or beef can be purchased in smaller the size of portions and additional down the road, when they provide us with use of huge, heaping portions of the cheap things like rice and potatoes. Buffets also create a indicate use smaller serving utensils with the higher priced grub.