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, despite the promise of delicious cheese biscuits awaiting you behind those ubiquitous red letters, Old Country Buffet has definitely had some setbacks. And we are not just talking about broken froyo machines at the lunch rush.
The property owner of hometown 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, as well as HomeTown, in accordance with Food Management Partners’ website.
Those chains, which operate 150 restaurants, were portion 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, in accordance with an announcement from Peter Donbavand of San Antonio, Texas-based Food Management Partners.
Also, he 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 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 the other 92 over the following ten days. Buffets LLC and the chains do business under the Ovation Brands name.
It was the 3rd filing since 2008 years for that restaurant chains, which previously entered bankruptcy known as Buffets Inc. The chains listed assets worth up to $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 the Ryan Restaurant Group merged in 2006 to create the largest U.S. buffet chain. During early 2008, however, the business declared Chapter 11 bankruptcy to shed a number of its 626 locations and cut its debt by $700 million. The company 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 symbolic of 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.
And any diet-conscious individual that does eat at Old Country Buffet will likely cost the chain money, so that’s not any better. Buffets have the ability to spend less by focusing on the behavioral psychology of how we eat out at hometown buffet menu with prices 2020. For instance, more canbhp protein stuff like fish or beef can be found in smaller the size of portions and further down the road, after they give us usage of huge, heaping servings of the cheap things like rice and potatoes. Buffets also make a indicate use smaller serving utensils with the higher priced grub.