Old Country Buffet has been an American strip mall staple for a long time. At one point the only thing Americans loved more 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’re not just referring to broken froyo machines at the lunch rush.
The property owner of hometown buffet near me along with other buffet dining chains filed on Monday for Chapter 11 bankruptcy, blaming a lawsuit that was not disclosed when its current owner bought the businesses in August.
Buffets LLC, an affiliate marketer 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, in accordance with Food Management Partners’ website.
Those chains, which operate 150 restaurants, were area 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 ended 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 that he considered unusual. The statement failed to say who sold the businesses to Food Management Partners, and a spokeswoman would only say it was “private equity.”
The company 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 10 days. Buffets LLC and the chains conduct business under the Ovation Brands name.
It absolutely was the next filing since 2008 years for your restaurant chains, which previously entered bankruptcy referred to as Buffets Inc. The chains listed assets worth approximately $50 million and liabilities of up to $100 million, in accordance with documents filed in the U.S. Bankruptcy Court for that Western District of Texas.
Buffets Inc and the Ryan Restaurant Group merged in 2006 to create the largest U.S. buffet chain. In early 2008, however, the organization filed for Chapter 11 bankruptcy to shed a number of its 626 locations and cut its debt by $700 million. The company returned to bankruptcy in 2012, this time to slim its reach from 494 restaurants.
Unfortunately for businesses like Old Country Buffet, buffets tend to be synonymous with obesity. Anyone who’s trying to shed some pounds might see images of endless bins of greasy food as being a straight-up recipe for fatness, so more than likely, they’re staying away.
And any diet-conscious individual who does eat out at Old Country Buffet will likely cost the chain money, so that’s not any better. Buffets have the ability to cut costs by focusing on the behavioral psychology of methods we eat out at hometown buffet menu. As an example, more canbhp protein stuff like fish or beef are available in smaller serving sizes and additional down the road, once they provide us with use of huge, heaping servings of the cheap stuff like rice and potatoes. Buffets also create a indicate use smaller serving utensils with all the higher priced grub.