Old Country Buffet has been an American strip mall staple for a long time. At one point the only thing Americans loved greater 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 talking about broken froyo machines at the lunch rush.
The property owner of hometown buffet hours along with other buffet dining chains filed on Monday for Chapter 11 bankruptcy, blaming a lawsuit which had been not disclosed when its current owner bought the businesses in August.
Buffets LLC, an affiliate of Food Management Partners, in August paid an undisclosed amount for that chains Old Country Buffet, Ryan’s, Fire Mountain and Tahoe Joe’s, as well as HomeTown, in accordance with Food Management Partners’ website.
Those chains, which operate 150 restaurants, were part 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 resulted in an $11.4 million judgment, in accordance with a statement from Peter Donbavand of San Antonio, Texas-based Food Management Partners.
He also said the chains have seen sharp drops in sales he considered unusual. The statement did not say who sold the businesses to Food Management Partners, and a spokeswoman would only say it was “private equity.”
The business said sales have fallen 22 percent lacking the seller’s projections, prompting the closure of 74 stores in recent weeks and another 92 within the next ten days. Buffets LLC and also the chains work beneath the Ovation Brands name.
It was the next filing since 2008 years for the restaurant chains, which previously entered bankruptcy known as Buffets Inc. The chains listed assets worth as much as $50 million and liabilities of up to $100 million, according to documents filed inside the U.S. Bankruptcy Court for that Western District of Texas.
Buffets Inc and the Ryan Restaurant Group merged in 2006 to generate the greatest U.S. buffet chain. In early 2008, however, the company 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 tend to be symbolic of 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 probably, they’re staying away.
And any diet-conscious person who does eat at Old Country Buffet will probably cost the chain money, so that’s not any better. Buffets are able to cut costs by focusing on the behavioral psychology of how we eat at hometown buffet menu 2020. For example, more canbhp protein items like fish or beef can be found in smaller serving sizes and additional down the line, once they provide us with access to huge, heaping areas of the cheap stuff like rice and potatoes. Buffets also make a point out use smaller serving utensils using the more expensive grub.