Old Country Buffet has been an American strip mall staple for a long time. At one point the only thing Americans loved greater than eating, was eating at a buffet. But in the 21st century, inspite 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 owner of hometown buffet menu along with other buffet dining chains filed on Monday for Chapter 11 bankruptcy, blaming a lawsuit which was 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, along with HomeTown, according to Food Management Partners’ website.
Those chains, which operate 150 restaurants, were portion of the bankruptcy filing on Monday, according to court documents. The firm that sold the restaurant chains in August did not disclose a pending lawsuit, which resulted in an $11.4 million judgment, based on an announcement from Peter Donbavand of San Antonio, Texas-based Food Management Partners.
He also said the chains have seen 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 had been “private equity.”
The company said sales have fallen 22 percent lacking the seller’s projections, prompting the closure of 74 stores in recent weeks and the other 92 in the next ten days. Buffets LLC and also the chains do business beneath the Ovation Brands name.
It absolutely was the 3rd 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 in the U.S. Bankruptcy Court for your Western District of Texas.
Buffets Inc and also the Ryan Restaurant Group merged in 2006 to create the largest U.S. buffet chain. In early 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 often synonymous with 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 any diet-conscious person who does eat at Old Country Buffet will likely cost the chain money, so that’s not any better. Buffets are able to cut costs by focusing on the behavioral psychology of methods we eat out at hometown buffet deals. As an example, more canbhp protein items like fish or beef are available in smaller the size of portions and additional down the line, after they give us use of huge, heaping portions of the cheap stuff like rice and potatoes. Buffets also produce a point to use smaller serving utensils with the higher priced grub.