Italian-American restaurant chain Buca di Beppo filed for Chapter 11 bankruptcy protection on Monday. Buca di Beppo saidit intends to keep its current locations open despite a significant drop in sales, rising food and labor costs, and staffing challenges. It joins other restaurant chains that have cited rising costs as reasons for filing for bankruptcy in 2024, including Red Lobster and Rubio’s Coastal Grill.
Buca di Beppo is known for its large portions, family-style dining and “eclectic decor,” which includes a “Pope Room” decorated with statues, photographs and other artistic representations of the pope, according to its court filings.
Buca di Beppo filing for bankruptcy protection
The company, known for serving big portions to large groups and its kitschy decor, said it intends to use the bankruptcy process to restructure its operations and keep 44 locations open, including restaurants in Pasadena, Universal City, Encino and Redondo Beach.
William Snyder, chief restructuring officer, said the remaining restaurants were open for business and “we expect day-to-day operations to continue uninterrupted” during bankruptcy. Gift cards, reservations and promotions remain active and redeemable.
Buca di Beppo’s bankruptcy a strategic move
“This is a strategic step towards a strong future for Buca di Beppo,” Rich Saultz, the company’s president, said in a statement. “While the restaurant industry has faced significant challenges, this move is the best next step for our brand.”
President of Buca di Beppo’s, Rich Saultz, said the company’s lenders support a bankruptcy restructuring and that day-to-day operations will continue as normal.
“Buca di Beppo has been a beloved gathering place for celebrations and memorable meals for many years, and we are enthusiastic about entering this next phase of our brand’s story,” Saultz said in a statement.
Buca di Beppo assets and liabilities
The company has $10 million to $50 million in assets and $50 million to $100 million in liabilities, according to its Chapter 11 petition filed in U.S. Bankruptcy Court in Dallas.
The Orlando, Florida-based company currently has 44 locations across 14 states and 3,340 employees. It said it is also opening one new location. It closed 12 restaurants before filing for bankruptcy and will seek court approval to terminate leases at those locations.
Buca di Beppo shutting locations
Buca di Beppo has been reducing its brick-and-mortar footprint for years, beset by many of the same issues faced by restaurant competitors: sluggish consumer spending, higher employee wages and increased food costs among them. The Orlando, Fla., company, which saw sales decrease 4.7% last year, peaked at 95 locations in 2013, according to Restaurant Business.
Last month, Buca di Beppo abruptly shut down 13 restaurants, about 20% of its portfolio, including a location in Sacramento. The privately held company, which was founded in Minneapolis in 1993, is opening one new location.
Broader Industry Impact
Restaurant Closures
The restaurant industry has faced significant challenges, with other chains like Rubio’s Coastal Grill and Red Lobster also filing for bankruptcy and closing numerous locations.
Economic Pressures
The industry is grappling with sluggish consumer spending, higher wages, and increased food costs, contributing to the financial distress of many restaurant chains.
