Yet another casual chain files for bankruptcy

don pablos

Adding to a growing list of restaurant entities that have recently gone bankrupt, the parent company of the Don Pablo’s casual chain has filed for Chapter 11 bankruptcy protection.

The company, Rita Restaurant Corp., pinned the filing on casual dining’s decline as well as fast-casual Mexican chains’ growing prominence, the Wall Street Journal said, citing court papers.

It owns 16 Don Pablo’s units in addition to one Hops Grill and Brewery, according to the WSJ. An affiliate of Food Management Partners manages the chain, which it acquired in 2014.  

Several other brands run by FMP are currently in bankruptcy, including Zio’s Italian Kitchen.

Just yesterday, news broke that the operator of the Souplantation and Sweet Tomatoes buffet chains had filed for Chapter 11 bankruptcy protection, following similar moves by the respective operators of Logan’s Roadhouse and the Champps, Bailey’s and Fox & Hound chains.

Fast-casual Cosi's franchisor also filed for bankruptcy last week. 

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Operations

Hitting resistance elsewhere, ghost kitchens and virtual concepts find a happy home in family dining

Reality Check: Old-guard chains are finding the alternative operations to be persistently effective side hustles.

Financing

The Tijuana Flats bankruptcy highlights the dangers of menu miscues

The Bottom Line: The fast-casual chain’s problems following new menu debuts in 2021 and 2022 show that adding new items isn’t always the right idea.

Financing

For Papa Johns, the CEO departure came at the wrong time

The Bottom Line: The pizza chain worked to convince franchisees to buy into a massive marketing shift. And then the brand’s CEO left.

Trending

More from our partners