Old Country Buffet has been an American 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, 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 are not just referring to broken froyo machines at the lunch rush.
The owner of hometown as well as 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 your chains Old Country Buffet, Ryan’s, Fire Mountain and Tahoe Joe’s, in addition to HomeTown, according to Food Management Partners’ website.
Those chains, which operate 150 restaurants, were area of the bankruptcy filing on Monday, in accordance with 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, based on a statement from Peter Donbavand of San Antonio, Texas-based Food Management Partners.
He also said the chains have seen sharp drops in sales that he considered unusual. The statement did not say who sold the businesses to Food Management Partners, as well as a spokeswoman would only say it 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 the other 92 within the next 10 days. Buffets LLC and the chains do business underneath the Ovation Brands name.
It absolutely was the next filing since 2008 years for your 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 that Western District of Texas.
Buffets Inc and also the Ryan Restaurant Group merged in 2006 to generate the largest U.S. buffet chain. At the begining of 2008, however, the company filed for Chapter 11 bankruptcy to shed some 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 frequently synonymous with obesity. Anyone who’s attempting to shed some pounds might see images of endless bins of greasy food being a straight-up recipe for fatness, so more than likely, they’re staying away.
And any diet-conscious individual 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 cut costs by focusing on the behavioral psychology of methods we eat out at hometown buffet menu prices. For example, more canbhp protein things like fish or beef can be found in smaller serving sizes and additional down the line, when they give us access to huge, heaping areas of the cheap stuff like rice and potatoes. Buffets also create a point to use smaller serving utensils with the more costly grub.