Old Country Buffet has been a united states 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, 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 referring to broken froyo machines at the lunch rush.
The property owner of hometown buffet restaurant along with 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 online 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 part of the bankruptcy filing on Monday, in accordance with court documents. The firm that sold the restaurant chains in August failed to disclose a pending lawsuit, which ended in an $11.4 million judgment, according to a statement from Peter Donbavand of San Antonio, Texas-based Food Management Partners.
Also, he said the chains have experienced sharp drops in sales that 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 business 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 do business underneath 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 high as $100 million, based on documents filed within the U.S. Bankruptcy Court for your Western District of Texas.
Buffets Inc as well as the Ryan Restaurant Group merged in 2006 to produce the biggest U.S. buffet chain. In early 2008, however, the company filed for Chapter 11 bankruptcy to shed a few of its 626 locations and cut its debt by $700 million. The business returned to bankruptcy in 2012, now to slim its reach from 494 restaurants.
Unfortunately for businesses like Old Country Buffet, buffets are frequently symbolic of obesity. Anyone who’s trying to shed some pounds might see images of endless bins of greasy food as a straight-up recipe for fatness, so most likely, they’re staying away.
And then any diet-conscious individual that does eat out at Old Country Buffet will more than likely 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 prices. For instance, more canbhp protein stuff like fish or beef can be purchased in smaller the size of portions and additional down the road, once they give us usage of huge, heaping areas of the cheap things like rice and potatoes. Buffets also create a point to use smaller serving utensils with all the higher priced grub.