It sure seems like a lot of restaurant companies have filed for bankruptcy lately, such as Real Mex, Noon Mediterranean and Ruby’s Diner.
But is it more than normal?
For this question, we spoke with Jonathan Tibus, managing director of Alvarez & Marsal out of Atlanta, and an expert on restructuring struggling companies, in this week’s edition of our podcast, "A Deeper Dive."
Tibus has worked on numerous restaurant bankruptcies, guiding them through the process as a CEO, such as Joe’s Crab Shack owner Ignite Restaurant Group as well as the owner of Champps and Fox & Hound. He has worked with struggling chains such as Quiznos and Max & Erma’s. He is currently the CEO of Real Mex Restaurants, which is being sold out of bankruptcy court.
Tibus will talk about what is driving some companies into bankruptcy, including high rents and heavy debt loads, but also the rising cost of labor, especially in certain states.
Please have a listen.