Old Country Buffet has been an American strip mall staple for a long time. At one point the only thing Americans loved more than eating, was eating at a buffet. But in the 21st century, despite 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 referring to broken froyo machines at the lunch rush.
The homeowner of hometown menu 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 online affiliate 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, in accordance with 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 failed to disclose a pending lawsuit, which ended in an $11.4 million judgment, according to a statement from Peter Donbavand of San Antonio, Texas-based Food Management Partners.
Also, he said the chains have experienced sharp drops in sales he considered unusual. The statement failed to say who sold the businesses to Food Management Partners, and a spokeswoman would only say it was “private equity.”
The company 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 over the following ten days. Buffets LLC as well as the chains work beneath the Ovation Brands name.
It had been the next filing since 2008 years for that restaurant chains, which previously entered bankruptcy called Buffets Inc. The chains listed assets worth up to $50 million and liabilities as high as $100 million, based on documents filed in the U.S. Bankruptcy Court for the Western District of Texas.
Buffets Inc and also the Ryan Restaurant Group merged in 2006 to generate the biggest U.S. buffet chain. At the begining of 2008, however, the organization filed for Chapter 11 bankruptcy to shed a number of its 626 locations and cut its debt by $700 million. The company returned to bankruptcy in 2012, this time to slim its reach from 494 restaurants.
Unfortunately for businesses like Old Country Buffet, buffets are often symbolic of obesity. Anyone who’s trying to shed some pounds might see images of endless bins of greasy food as a straight-up recipe for fatness, so more than likely, they’re staying away.
And any diet-conscious person who does eat at Old Country Buffet will more than likely cost the chain money, so that’s not any better. Buffets can spend less by focusing on the behavioral psychology of methods we eat out at hometown buffet deals. As an example, more canbhp protein things like fish or beef can be found in smaller the size of portions and additional down the line, after they provide us with access to huge, heaping areas of the cheap things like rice and potatoes. Buffets also produce a indicate use smaller serving utensils using the more costly grub.