A popular chain of casual dining restaurants has filed for bankruptcy after the company struggled to recover from the pandemic.
World of Beer Bar & Kitchen tapped into millennials’ love of craft beer and grew rapidly after its founding in Tampa, Florida in 2007.
In 2013 it was lis listed as No. 3 in the fastest growing restaurant chains of the year by the respected website Restaurant Business.
Two years later, it had grown to 75 locations in 20 states, with plans to have 100 the following year. There were plans to go national.
But last week, the company filed for Chapter 11 bankruptcy, saying it still owed suppliers about $50 million.
The problems are not unlike dozens of restaurant chains that have struggled this year. Customers didn’t fully return after the pandemic, and World of Beer’s profits have been hit by rcosts for food, labor, business loans and rent.
The company, known for its range of around 500 craft and bottled beers, saw its sales fall 13 percent compared to previous years.
World of Beer Bar & Kitchen filed for Chapter 11 bankruptcy last week
World of Beer is the latest restaurant chain to find itself in trouble
Over the past year, World of Beer has closed 14 of its restaurants, bringing its total to 34, but more closures could come as the company goes through the bankruptcy process. Restaurant company reported.
The company plans to restructure and remains “optimistic about the future,” a press release said.
“We are confident in our future, backed by a solid plan and a dedicated team committed to delivering exceptional dining experiences,” said Paul Avery, president and CEO of World of Beer.
“Our focus remains on serving our loyal customers, supporting our employees and franchises, and positioning our restaurants for continued growth and success in a competitive environment.”
World of Beer is the latest restaurant chain to struggle with the tough conditions, as rising operating costs and inflation make customers more selective about where they eat out.
Recently, popular Italian restaurant chain Buca di Beppo closed 13 of its underperforming locations and filed for bankruptcy.
Red Lobster is one of the largest chains to have run into trouble. In May, the company filed for bankruptcy and closed nearly 100 restaurants.
Just a month later, Mexican chain Rubio’s closed 48 locations in the state and also filed for bankruptcy.
Concerns about mass closures also emerged in June when BurgerFi, which bills itself as an upscale McDonald’s, announced it was considering bankruptcy.
Hooters has also closed dozens of restaurants in recent months as rent and food costs rise.