Another day, another announcement of restaurant closures in the casual-dining space.
Earlier this week, FAT Brands filed for Chapter 11 bankruptcy protection. As part of that process, the restaurant company is seeking to reject leases for a number of shuttered company-owned restaurants, including locations for Johnny Rockets, Smokey Bones, and Yalla Mediterranean, court filings show.
FAT Brands owns 18 restaurant chains in total, including Fatburger, Round Table Pizza, Great American Cookies, and more. Most of its more than 2,200 locations worldwide are franchised. FAT Brands said in its bankruptcy filing that owns roughly 150 locations directly.
“Our dynamic portfolio of brands has demonstrated tremendous resilience in a challenging restaurant operating environment over the last few years,” Andy Wiederhorn, CEO of FAT Brands, said in a statement when announcing the bankruptcy. “We are well positioned for long-term profitability and growth. The chapter 11 process will provide us with the opportunity to strengthen our capital structure to support our concepts and ensure they remain at the forefront of their sectors.”
Which FAT brands locations have shuttered?
In its bankruptcy announcement, FAT Brands said it expects restaurants to continue operating normally throughout the process.
However, the company disclosed in a bankruptcy filing on Monday that it has shuttered a number of company-owned restaurants: 14 Smokey Bones locations nationwide, along with two Johnny Rockets and five Yalla Mediterranean locations. The latter two’s impacted stores are only in California.
Fast Company has reached out to FAT Brands to ask if other stores will be impacted. We will update this post if we hear back.
Johnny Rockets closures
California
- Orange: 20 City Blvd E
- Santa Monica: 1322 Third Street
Smokey Bones closures
Florida
- Casselberry: 1430 State Road 436
- Fort Lauderdale: 6500 N Federal Hwy
- Plantation: 809 South University Drive
Georgia
- Buford: 3333 Buford Drive, Site 1000
Illinois
- Rockford: 6690 E State Street
Massachusetts
- Stoughton: 301 Technology Center Drive
Michigan
- Grand Rapids: 4875 28th Street SE
- Utica: 45001 Schoenherr Road
Ohio
- Columbus: 3939 Mose Crossing
- Maumee: 512 West Dussel Drive
Pennsylvania
- North Wales: 252 Montgomery Mall
- Wilkes-Barre: 265 Mundy Street
Virginia
- Newport News: 12541 Jefferson Avenue
- Woodbridge: 2601 Prince William County Parkway
Yalla Mediterranean closures
California
- Culver City: 5246 Dublin Blvd
- Dublin: 1781 N. Victory Place
- Fremont: 12420-A Seal Beach Blvd
- Seal Beach: 3141 Mowry Avenue
- Walnut Creek: 1813-A Ygnacio Valley Road
Some casual-dining restaurants are struggling
Life is continually getting more expensive and fewer people are spending their money at casual-dining restaurants.
FAT Brands joins the ranks of Noodle & Company, Outback Steakhouse, and Cracker Barrel‘s Maple Street Biscuit Company—all of which have recently closed locations.
Some fellow casual-dining restaurants, such as Red Lobster and TGI Friday, have not only closed stores in recent years but, like FAT Brands, have filed for bankruptcy.
However, both of those brands have since plotted out a comeback, and FAT Brands has hinted at one as well. “We plan to use this process to connect with key stakeholders around a value-maximizing plan and will act prudently to remain steadfast in upholding and protecting stakeholder interests,” Wiederhorn said in his statement.
Shares of FAT Brands Inc (Nasdaq: FAT) fell 33% on Tuesday following the announcement. The stock was trading at under 25 cents a share in premarket on Wednesday.
