Old Country Buffet has been an American strip mall staple for years. At one point the only thing Americans loved greater than eating, was eating at a buffet. But in the 21st century, inspite of 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 talking about broken froyo machines at the lunch rush.
The property owner of hometown buffet menu with prices 2020 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 affiliate marketer of Food Management Partners, in August paid an undisclosed amount for that 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 portion 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 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 seen sharp drops in sales which he considered unusual. The statement failed to say who sold the businesses to Food Management Partners, and 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 conduct business under the Ovation Brands name.
It was the 3rd filing since 2008 years for your restaurant chains, which previously entered bankruptcy referred to as Buffets Inc. The chains listed assets worth up to $50 million and liabilities as high as $100 million, based on documents filed inside the U.S. Bankruptcy Court for your Western District of Texas.
Buffets Inc and also the Ryan Restaurant Group merged in 2006 to produce the largest U.S. buffet chain. At the begining of 2008, however, the business declared 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 synonymous with obesity. Anyone who’s attempting 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 then any diet-conscious individual that does eat out at Old Country Buffet will likely cost the chain money, so that’s not any better. Buffets are able to reduce costs by focusing on the behavioral psychology of methods we eat at hometown buffet restaurant. For example, more canbhp protein items like fish or beef can be purchased in smaller serving sizes and further down the road, after they give us access to huge, heaping areas of the cheap things like rice and potatoes. Buffets also make a indicate use smaller serving utensils with the higher priced grub.