On August 5, 2024, Buca di Beppo voluntarily filed for Chapter 11 bankruptcy in the US Bankruptcy Court for the Northern District of Texas. The company listed its assets between $10 million and $50 million and its liabilities between $50 million and $100 million in its bankruptcy petition.
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Buca di Beppo’s revenue for the first five months of 2024 fell by 10% to $74.8 million compared to the same period in 2023, according to bankruptcy court documents.
The restaurant chain is burdened with over $10 million in debt including $1.36 million in unredeemed gift cards.
Buca di Beppo is a popular Italian-American restaurant chain headquartered in Orlando, Florida. The chain is famous for its decor and large, family-style servings. As of August 2024, Buca di Beppo operates 44 locations across 14 states in the United States.
Buca di Beppo has Closed 18 Underperforming Locations:
- Chandler, Arizona: 7111 West Ray Road
- Sacramento, California: 1249 Howe Ave.
- Broomfield, Colorado: 615 Flatiron Marketplace Drive
- Maitland, Florida: 1351 South Orlando Avenue
- Honolulu, Hawaii: 1030 Auahi Street
- Indianapolis, Indiana: 6045 East 86th Street
- Gaithersburg, Maryland: 112 Kentlands Blvd
- Livonia, Michigan: 38888 Six Mile Road
- Utica, Michigan: 12575 Hall Road
- Atlantic City, New Jersey: 1900 Pacific Avenue
- Colonie, New York: 44 Wolf Road
- Pineville, North Carolina: 10915 Carolina Place Parkway
- Worthington, Ohio: 60 East Wilson Bridge
- Pittsburgh, Pennsylvania: 3 East Station Square Drive
- 6600 Robinson Centre Drive
- Wyomissing, Pennsylvania: 2745 Paper Mill Road
- Salt Lake City, Utah: 202 West 200 South
- Midvale, Utah: 935 East Fort Union Blvd
The closed locations were identified as underperforming, contributing to the company’s financial strain.
High lease and rent costs in certain areas necessitated store closures to tackle financial burdens. By closing underperforming stores, Buca di Beppo plans to streamline its operations and focus on more profitable locations.
According to its Chapter 11 petition filed in the US Bankruptcy Court in Dallas, Buca di Beppo has assets ranging from $10 million to $15 million and liabilities between $50 million to $100 million.
Other casual dining chains like Red Lobster, Sticky’s Finger Joint and Tijuana Flats also seeking bankruptcy protection in 2024.
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Chapter 11 bankruptcy allows companies to reorganize and restructure their debts while continuing to operate.
President Rich Saultz stated, “While the restaurant industry has faced significant challenges, this move is the best next step for our brand. By restructuring with the continued support of our lenders, we are paving the way toward a reinvigorated future.”
Buca di Beppo plans to focus on 44 core locations across 14 states identifying these as the most profitable and strategically valuable.
The company will continue to serve its signature family-style meals at these locations maintaining the brand’s identity and customer appeal.
Chief Restructuring Officer William Snyder addressed the company’s commitment to operations and stated that, “We are open for business in 44 locations, and we expect day-to-day operations to continue uninterrupted.”
Buca di Beppo employs 3,340 workers, of which 266 are full-time. The restructuring process will likely affect staffing levels with potential layoffs or reassignments at closed locations.
The company has not specified how many employees will be impacted but will likely focus on retaining staff at core locations.
Rich Saultz, President said, “This is a strategic step towards a strong future for Buca di Beppo. By restructuring with the continued support of our lenders, we are paving the way toward a reinvigorated future.”
William Snyder, Chief Restructuring Officer stated, “We believe this path will best allow us to continue to serve Buca’s patrons and communities for many years to come.”
The restaurant industry has faced staffing challenges with difficulties in hiring and retaining staff, adding to operational challenges.
To attract and retain employees, many restaurants including Buca di Beppo had to increase wages.
Chapter 11 bankruptcy is a legal process that allows companies to reorganize their debts and operations to remain in business while repaying creditors over time.
Contrary to common misconceptions, filing for Chapter 11 does not mean a company is closing its doors.
Despite the bankruptcy filing Buca di Beppo intends to continue its day-to-day operations without interruptions. The company is also in the process of opening a new location.
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