6 restaurants that went bankrupt in 2021
The companies, which operate Ryan’s, Old Country Buffet, Tahoe Joe’s Famous Steakhouse, HomeTown Buffet, Fire Mountain and Furr’s Fresh Buffet, have gone bankrupt after COVID-19 “significantly disrupted” operations and “severely constrained” demand.
Before the pandemic, companies operated about 90 stores in 27 states. But as federal, state and local governments implemented shelter-in-place orders, customer spending and foot traffic declined, and restaurant cash flow was hit hard. At the time of filing, all stores had closed except for six Tahoe Joe’s stores in California. Those six restaurants had a combined turnover of around $ 21 million per year before the pandemic.
“As with almost every one of our peers, buffet restaurants have suffered the brunt of the lost sales during the pandemic and, as such, the path to success requires tough choices to be made, including streamlining our footprint. overall, âsaid Jason Kemp. , co-founder and CEO of VitaNova, a company that provided management services to restaurants.
“The precipitous decline in restaurant sales resulting from occupancy restrictions and the ban on family-style buffet meals has forced businesses to take extraordinary measures, including closing several locations,” he said. he continued.