Old Country Buffet has been an American strip mall staple for years. At one point the only thing Americans loved a lot more than eating, was eating at a buffet. But in the 21st century, despite the commitment of delicious cheese biscuits awaiting you behind those ubiquitous red letters, Old Country Buffet has definitely had some setbacks. And we’re not just speaking about broken froyo machines at the lunch rush.
The homeowner of https://allfoodmenuprices.org/hometown-buffet-menu-prices/ and 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 of Food Management Partners, in August paid an undisclosed amount for the chains Old Country Buffet, Ryan’s, Fire Mountain and Tahoe Joe’s, in addition to HomeTown, in accordance with Food Management Partners’ website.
Those chains, which operate 150 restaurants, were portion of the bankruptcy filing on Monday, according to court documents. The firm that sold the restaurant chains in August did not disclose a pending lawsuit, which led to an $11.4 million judgment, based on a statement from Peter Donbavand of San Antonio, Texas-based Food Management Partners.
Also, he 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 absolutely was “private equity.”
The organization said sales have fallen 22 percent short of the seller’s projections, prompting the closure of 74 stores in recent weeks and another 92 within the next 10 days. Buffets LLC and also the chains conduct business underneath the Ovation Brands name.
It absolutely was the third filing since 2008 years for that restaurant chains, which previously entered bankruptcy called Buffets Inc. The chains listed assets worth approximately $50 million and liabilities of up to $100 million, according to documents filed inside the U.S. Bankruptcy Court for the Western District of Texas.
Buffets Inc and the Ryan Restaurant Group merged in 2006 to generate the largest U.S. buffet chain. At the begining of 2008, however, the company declared Chapter 11 bankruptcy to shed some of its 626 locations and cut its debt by $700 million. The organization returned to bankruptcy in 2012, this time to slim its reach from 494 restaurants.
Unfortunately for businesses like Old Country Buffet, buffets are frequently 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 more than likely, they’re staying away.
And any diet-conscious individual who does eat out at Old Country Buffet will probably cost the chain money, so that’s not any better. Buffets have the ability to spend less by focusing on the behavioral psychology of how we eat out at hometown. For example, more canbhp protein things like fish or beef can be found in smaller portion sizes and further down the road, after they give us usage of huge, heaping servings of the cheap stuff like rice and potatoes. Buffets also produce a point out use smaller serving utensils using the more costly grub.