These Major Restaurants have filed for Bankruptcy during COVID-19 and many more are At Risk

July 20, 2020

In life after COVID-19, experts warn that the local restaurant scene may be no more than a KFC, McDonald’s, Burger King and one or two overpriced craft cocktail bars serving tapas which somehow managed to survive the financial distress from the pandemic.

There have been eight bankruptcies of outright restaurant chains or operators of franchises since early April. With each month that has passed, the filings have become prominent as restaurants struggle with weak traffic after being allowed to reopen by states, piles of debt and sky-high rent. The latest two high-profile names include children’s fun house Chuck E. Cheese’s (Chapter 7) and Wendy’s and Pizza Hut franchisee NPC International (Chapter 11) on July 1^st.

Food First was one of the first to file for Chapter 11, back on April 10, followed by Bamboo on May 10^th, Le Pain Quotidien on May 27^th. Toojay’s (April 29) and Souplantation (May 14) filed for Chapter 7.

“We have to have a bailout [of the restaurant industry],” said celebrity chef and owner of restaurant Blue Dragon Ming Tsai on Yahoo Finance’s The First Trade. “I don’t know if the government understands the severity of this problem. We may be left with just chain restaurants and fast-food restaurants if the government doesn’t react.” With government assistance nowhere in sight, Tsai may not be too far off the mark.

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Photo Credit: hedgehog111 / Shutterstock.com

Written by: Vipology Staff Writer

Bamboo bankruptcy Burger king Chuck E. Cheese bankruptcy Chuck E. Cheese's COVID-19 closes restaurants Food First bankruptcy KFC Le Pain Quotidien bankruptcy McDonald's Ming Tsai chef and owner Blue Dragon Pizza Hut franchisee NPC International Restaurants who filed for bankruptcy in COVID-19 Souplantation bankruptcy Toojay's bankruptcy Wendy's franchisee NPC International Yahoo Finance

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