The pandemic has led to widespread closures in the restaurant industry, but the consensus on the scale of those closures is still evolving. A new report from The Washington Post suggests that initial figures may have been slightly overestimating the gravity of the situation.

A commonly cited piece of data is the National Restaurant Association's estimate of 90,000 pandemic-related closures in 2020. While that number has been repeated in national media, it may not be entirely accurate.

Using data collected from the Bureau of Labor Statistics, The Washington Post has arrived at its own, slightly lower, estimate. According to the publication, the pandemic most likely led to an additional 72,700 permanent and long-term restaurant closures in 2020—somewhat less than the NRA statistic, but staggering all the same. These closures represent a 95% increase over the average yearly closure rate.

No less than local and independently-owned restaurants, restaurant chains suffered pandemic-related closures, with many edged into bankruptcy (and some, liquidation).

Here's a look at five beloved restaurant chains that are disappearing in 2022. Don't miss These Restaurants Are Nearing Bankruptcy, Recent Data Shows.

1

Howard Johnson's

The last remaining Howard Johnson's restaurant (an outpost in Lake George, N.Y.) closed up shop in June, marking the official end of the Howard Johnson's line.

Founded in 1929, and beloved for things like signature ice cream (available in 28 flavors), Howard Johnson's enjoyed its heyday in the mid-twentieth century, expanding over the course of several decades to a footprint of over 1,000 locations.

But facing increased competition from rival chains like McDonald's, Burger King, and KFC, HoJo's lost its footing in the latter half of the century. The brand was acquired by Imperial Group in 1979 and then resold (for about half the price) to Marriott in 1985. By 2000, there were less than a few dozen Howard Johnson's remaining.

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Following a decline in foot traffic and a years-long lawsuit with its parent company, Nestle Café was sold last month by Crest Foods to restaurant operator FAT Brands.

While some locations are still operating, all 85 remaining cafés, found mostly in malls and shopping centers, will be converted into Great American Cookies stores, FAT Brands said in a statement.

The chain of entertainment centers folded in late 2021, announcing on Christmas Eve the closure of its six remaining locations.

Founded in 1996 as a joint venture between Sega and DreamWorks (and with Steven Spielberg as a creative consultant), GameWorks took a unique approach to themed dining, offering its patrons a fully-catered video game arcade experience along with bowling and billiards.

A sound business model, by all appearances. But DreamWorks backed out of the venture early on, selling its share in GameWorks in 2001. Two bankruptcies followed, and between 2017 and 2020 the company posted $28.9 million in losses.

By the time the pandemic arrived, along with mandatory closures, GameWorks was already on its way out.

The buffet chain is one of several brands (along with Furr's and Tahoe Joe's) owned by holding company Fresh Acquisitions (formerly known as Buffets Inc.), which declared bankruptcy last April.

At the time of the filing, Fresh Acquisitions had between $10 million and $50 million in liabilities. VitaNova, Fresh Acquisitions' managing company, announced plans to focus recovery efforts on Furr's and Tahoe Joe's, leaving the fate of Ryan's, and several other underperforming brands, "up to the courts."

Fresh Acquisitions was then acquired by BBQ Holdings last fall in a bankruptcy auction. Interested primarily in Tahoe Joe's, BBQ Holdings did not, at the time of the auction, have any immediate plans to revive Ryan's or any of Fresh Acquisitions' other buffet brands.

Like Ryan's, Old Country Buffet was part of the Fresh Acquisitions portfolio auctioned off to BBQ Holdings last fall. As BBQ Holdings does not have any immediate plans to revive any of the buffet concepts, Old Country Buffet—along with Ryan's, Furr's, and Hometown Buffet—appears to be gone for good.

As Restaurant Business points out, the decline of Old Country Buffet and its sibling brands predated the pandemic and was rooted in years of mismanagement by parent company Fresh Acquisitions.

While rival buffet chain Golden Corral managed to stay afloat in 2020 and beyond, the Fresh Acquisition brands were poorly positioned to weather the pandemic, following "more than a decade of neglect."

The post 5 Restaurant Chains We've Lost for Good This Year appeared first on Eat This Not That.

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By: Owen Duff
Title: 5 Restaurant Chains We've Lost for Good This Year
Sourced From: www.eatthis.com/news-restaurant-chains-weve-lost-for-good-in-2022/
Published Date: Sat, 02 Jul 2022 10:30:58 +0000

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