Old Country Buffet has been an American strip mall staple for years. At one point the only thing Americans loved more than eating, was eating at a buffet. But in the 21st century, regardless of the commitment of delicious cheese biscuits awaiting you behind those ubiquitous red letters, Old Country Buffet has definitely had some setbacks. And we are not just referring to broken froyo machines at the lunch rush.
The owner of home town buffet and other buffet dining chains filed on Monday for Chapter 11 bankruptcy, blaming a lawsuit which had been not disclosed when its current owner bought the businesses in August.
Buffets LLC, an affiliate of Food Management Partners, in August paid an undisclosed amount for that chains Old Country Buffet, Ryan’s, Fire Mountain and Tahoe Joe’s, as well as 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 did not 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.
Also, he said the chains have seen sharp drops in sales that he considered unusual. The statement did not say who sold the businesses to Food Management Partners, as well as a spokeswoman would only say it was “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 another 92 in the next ten days. Buffets LLC as well as the chains conduct business under the Ovation Brands name.
It absolutely was the 3rd filing since 2008 years for that restaurant chains, which previously entered bankruptcy known as Buffets Inc. The chains listed assets worth approximately $50 million and liabilities as much as $100 million, according to documents filed inside the U.S. Bankruptcy Court for that Western District of Texas.
Buffets Inc and the Ryan Restaurant Group merged in 2006 to generate the largest U.S. buffet chain. In early 2008, however, the company 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, now to slim its reach from 494 restaurants.
Unfortunately for businesses like Old Country Buffet, buffets are often 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 most likely, they’re staying away.
And then 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 restaurant. For example, more canbhp protein items like fish or beef can be found in smaller serving sizes and additional down the line, once they provide us with usage of huge, heaping areas of the cheap things like rice and potatoes. Buffets also make a point out use smaller serving utensils with all the more costly grub.