Old Country Buffet has been a united states strip mall staple for years. At one point the sole thing Americans loved more than eating, was eating at a buffet. But in the 21st century, regardless 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 speaking about broken froyo machines at the lunch rush.
The owner of hometown buffet menu with prices 2020 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 your chains Old Country Buffet, Ryan’s, Fire Mountain and Tahoe Joe’s, in addition to HomeTown, based on Food Management Partners’ website.
Those chains, which operate 150 restaurants, were part 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 resulted in an $11.4 million judgment, based on 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, and a spokeswoman would only say it absolutely was “private equity.”
The organization 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 within the next ten days. Buffets LLC and also the chains do business under the Ovation Brands name.
It was the next filing since 2008 years for your 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 that Western District of Texas.
Buffets Inc as well as the Ryan Restaurant Group merged in 2006 to generate 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 company 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 seeking to shed some pounds might see images of endless bins of greasy food as being a straight-up recipe for fatness, so probably, they’re staying away.
As well as any diet-conscious individual that does eat at Old Country Buffet will likely cost the chain money, so that’s not any better. Buffets can cut costs by focusing on the behavioral psychology of how we eat out at hometown buffet menu. For example, more canbhp protein items like fish or beef are available in smaller portion sizes and additional down the line, once they give us access to huge, heaping portions of the cheap stuff like rice and potatoes. Buffets also make a point to use smaller serving utensils with all the more costly grub.