Old Country Buffet has been an American 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, 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 owner of hometown buffet menu 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 part of the bankruptcy filing on Monday, according to court documents. The firm that sold the restaurant chains in August failed to disclose a pending lawsuit, which led to 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 seen 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 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 in the next 10 days. Buffets LLC as well as the chains work 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 as much as $100 million, in accordance with documents filed in the U.S. Bankruptcy Court for that Western District of Texas.
Buffets Inc and also the Ryan Restaurant Group merged in 2006 to generate the largest U.S. buffet chain. During early 2008, however, the business declared Chapter 11 bankruptcy to shed a few of its 626 locations and cut its debt by $700 million. The organization 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 attempting to shed some pounds might see images of endless bins of greasy food being a straight-up recipe for fatness, so probably, 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 can spend less by focusing on the behavioral psychology of how we eat at hometown buffet menu. For instance, more canbhp protein items like fish or beef can be found in smaller portion sizes and further down the line, when they give us access to huge, heaping servings of the cheap things like rice and potatoes. Buffets also create a indicate use smaller serving utensils with the more expensive grub.