It’s been a tough a number of years for restaurant chains. Many have been dealing with headwinds on two fronts: shoppers who’re pulling again on discretionary spending as inflationary pressures chunk, and rising working prices. These pressures have resulted in quite a few chains submitting for chapter.
Now, one other chain’s proprietor has joined these ranks: 801 Restaurant Group, the father or mother firm of the 801 Chophouse chain of steakhouses, has filed for chapter. Right here’s what you want to know.
What’s occurred?
Earlier this month, 801 Restaurant Group, proprietor of a number of corporations that personal 801 Chophouse, 801 Fish, and 801 Native, filed for Chapter 11 chapter safety within the U.S. Chapter Court docket for the District of Kansas.
The group’s steakhouses, the primary of which was opened in 1993 in Des Moines, Iowa, have been a preferred vacation spot for Midwestern patrons for over 30 years. In 2013, 801 Restaurant Group expanded past its steakhouse roots to open 801 Fish, an upscale seafood restaurant.
However lately, the group, like many restaurant chain homeowners, has fallen on tougher occasions. In response to courtroom paperwork filed on April 10, 801 Restaurant Group has about $18.7 million in liabilities on its books and $15 million in property.
In an emailed assertion, 801 Restaurant Group advised Quick Firm that whereas 801 Restaurant Group LLC is in chapter, its particular person corporations that personal and function its eating places should not.
801 Restaurant Group mentioned the explanation it’s submitting for chapter is because of monetary points that “arose from guaranties given by 801 Restaurant Group LLC for different corporations that it owns.” The first concern issues the current closures of 801 Fish in Denver and its newest idea restaurant, 801 on Nicollet, in Minneapolis.
Are 801 Chophouses closing?
In fact, what followers of 801 need to know most is whether or not their beloved chophouses might be closing. The excellent news is that, for now, it doesn’t seem that 801 Restaurant Group will shut any areas.
“Apart from the 2 closed eating places, Chapter 11 just isn’t anticipated to have any impression on the remaining areas,” the corporate mentioned.
801 Restaurant Group has acknowledged that the aim of its Chapter 11 chapter is to restructure its money owed. Whether it is profitable in that, there isn’t any signal that the corporate will shut extra areas, all of which at present stay open and working. These areas at present embody:
801 Fish
- 172 Carondelet Plaza, Clayton, MO 63105
801 Chophouse
- 3000 E 1st Ave., Denver, CO 80206
- 801 Grand Ave., Suite 200, Des Moines, IA 50309
- 11616 Ash St., Leawood, KS 66211
- 801 Nicollet Mall, Minneapolis, MN 55402
- 137 Carondelet Plaza, Clayton, MO 63105
- 71 E 14th St., Kansas Metropolis, MO 64106
- 1403 Farnam St., Omaha, NE 68102
801 Restaurant Group is simply the most recent eating supplier to file for chapter
Each the sit-down eating and fast-food industries have skilled tough waters for a number of years. The troubles started across the time of the pandemic, when lockdowns and fears of COVID-19 stopped many individuals from eating out.
However even after the pandemic ended, foot visitors for a lot of giant chains by no means returned to their pre-pandemic ranges. Mix a lack of foot visitors with inflation-wary shoppers chopping again on discretionary prices (like consuming out) and rising operational prices consuming into eating places’ backside traces, and it’s no shock that many corporations within the trade have filed for chapter lately.
Maybe essentially the most high-profile chapter submitting within the restaurant area was Red Lobster in 2024. However since then, different meals chains, or their franchisees, have filed for chapter, together with Johnny Rockets and Smokey Bones proprietor FAT Brands, Popeyes Louisiana Kitchen franchisee Sailormen Inc., and Applebee’s Neighborhood Grill + Bar franchisee NRPF Group Two.
