Old Country Buffet has been a united states strip mall staple for a long time. At one point the only thing Americans loved a lot more than eating, was eating at a buffet. But in the 21st century, regardless of the commitment of delicious cheese biscuits awaiting you behind those ubiquitous red letters, Old Country Buffet has definitely had some setbacks. And we are not just speaking about 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 which had been not disclosed when its current owner bought the businesses in August.
Buffets LLC, an affiliate marketer 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 area of the bankruptcy filing on Monday, based on 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 experienced sharp drops in sales he considered unusual. The statement failed to say who sold the businesses to Food Management Partners, and a spokeswoman would only say it was “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 within the next 10 days. Buffets LLC as well as the chains conduct business underneath the Ovation Brands name.
It absolutely was the next filing since 2008 years for the restaurant chains, which previously entered bankruptcy called Buffets Inc. The chains listed assets worth approximately $50 million and liabilities of up to $100 million, based on documents filed within the U.S. Bankruptcy Court for the Western District of Texas.
Buffets Inc and also the Ryan Restaurant Group merged in 2006 to produce the greatest U.S. buffet chain. At the begining of 2008, however, the organization 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, this time around 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 being a straight-up recipe for fatness, so more than likely, they’re staying away.
And any diet-conscious person who does eat at Old Country Buffet will more than likely cost the chain money, so that’s not any better. Buffets are able to spend less by focusing on the behavioral psychology of how we eat at hometown menu. For instance, more canbhp protein items like fish or beef can be found in smaller serving sizes and additional down the road, after they give us access to huge, heaping portions of the cheap things like rice and potatoes. Buffets also produce a indicate use smaller serving utensils with all the more expensive grub.