Old Country Buffet has been an American strip mall staple for years. At one point the sole thing Americans loved more than eating, was eating at a buffet. But in the 21st century, regardless 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 talking about broken froyo machines at the lunch rush.
The homeowner 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 that chains Old Country Buffet, Ryan’s, Fire Mountain and Tahoe Joe’s, along with HomeTown, according to Food Management Partners’ website.
Those chains, which operate 150 restaurants, were part of the bankruptcy filing on Monday, based on 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, according to an announcement from Peter Donbavand of San Antonio, Texas-based Food Management Partners.
He also said the chains have experienced sharp drops in sales which 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 had been “private equity.”
The company 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 ten days. Buffets LLC and the chains conduct business beneath the Ovation Brands name.
It absolutely was the third filing since 2008 years for the restaurant chains, which previously entered bankruptcy known as Buffets Inc. The chains listed assets worth as much as $50 million and liabilities as high as $100 million, according to documents filed inside the U.S. Bankruptcy Court for the Western District of Texas.
Buffets Inc as well as the Ryan Restaurant Group merged in 2006 to create the biggest U.S. buffet chain. During early 2008, however, the business filed for Chapter 11 bankruptcy to shed some of its 626 locations and cut its debt by $700 million. The business returned to bankruptcy in 2012, this time around 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 being a straight-up recipe for fatness, so probably, they’re staying away.
As well as 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 are able to cut costs by focusing on the behavioral psychology of how we eat at hometown buffet menu 2020. As an example, more canbhp protein items like fish or beef can be found in smaller the size of portions and additional down the road, after they provide us with access to huge, heaping areas of the cheap things like rice and potatoes. Buffets also create a point out use smaller serving utensils with the higher priced grub.