The fast-food sandwich sector has battled financial points during the last yr, main franchisees to shut places and, in some instances, file for chapter safety.
Rising prices of labor and merchandise pushed by inflation and elevated tariffs are among the many financial points sandwich chains have confronted.
Tariffs in 2025 elevated the prices of important sandwich store merchandise, corresponding to imported cheeses, olive oil, seafood, and aluminum canned drinks, in accordance with information supplier IBISWorld.
Wholesale meals prices rise
Wholesale meals prices elevated 5% year-over-year, in accordance with the Nationwide Restaurant Affiliation, amplified by the monetary pressure from rising tariffs, IBISWorld mentioned.
Eating places have handed these increased prices on to shoppers via increased costs or smaller parts.
A sure sandwich chain franchisee bumped into monetary and authorized points final yr that resulted in extreme penalties, together with chapter.
Franchisee loses Panera places
Former Panera Bread franchisee EYM Cafe of Texas LLC filed for Chapter 11 chapter safety on Aug. 2, 2025, after dropping management of its 15 Houston-area Panera franchises in a court docket judgment.
Panera LLC on Might 23, 2025, filed a lawsuit in opposition to EYM Cafe of Texas within the U.S. District Courtroom for the Japanese District of Missouri for unauthorized operation of a number of Panera places in Texas and unapproved use of its logos.
Panera had terminated EYM Cafe’s franchise agreements in March and Might 2025 as a consequence of cost defaults, meals security violations, and model normal breaches, in accordance with Regulation.com.
A federal choose dominated in favor of Panera on June 17, 2025, issuing a everlasting injunction and ordering EYM Cafe of Texas to cease working below the Panera model, QSR reported.
In some instances, a enterprise faces points with its lease and landlord, forcing it to close down a location. That is what pressured one longtime sandwich chain to shut certainly one of its retailers.
Genova Delicatessen has one location remaining open after a number of models closed.
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Genova closes location
Iconic Northern California fast-food sandwich chain Genova Delicatessen has one remaining location open after closing down two retailers in Walnut Creek, Calif.
The delicatessen chain closed its location at 1105 S. California Blvd. in Walnut Creek on Feb. 18, three months after closing its 2064 Deal with Blvd. location, additionally in Walnut Creek, SFGate reported. The chain has not filed for chapter.
Unique deli closed in 2016
The deli chain, which was based in Oakland, Calif., in 1926, had operated in Walnut Creek for 58 years, in accordance with The Mercury Information. It closed the Oakland location in 2016. The Deal with Boulevard location reportedly closed Nov. 15, 2025.
“This was a heartfelt decision made after years of navigating increasing economic challenges,” the enterprise mentioned in an e-mail assertion to the Mercury. “We are deeply grateful for the opportunity to serve generations of Genova customers and to be part of this community for so long.”
The deli’s proprietor, John DeVincenzi, blamed the situation’s lease for its closing however didn’t go into element, KRON-TV reported.
“Every great thing comes to an end,” DeVincenzi advised KRON-TV. “It’s just the way it happens with all our leases and everything going on in Walnut Creek. (The city) has been very good to us.”
One location stays
The one remaining location is Dominic’s Unique Genova Delicatessen & Ravioli Manufacturing unit at 1550 Trancas St. in Napa, Calif.
Genova will proceed manufacturing its handmade ravioli and sauces, that are bought within the San Francisco Bay Space shops, at its Walnut Creek manufacturing facility.
That is excellent news for followers of the ravioli, like me, who purchase the packages at native grocery shops to cook dinner at house.
Extra closings:
- Bankrupt restaurant chains completely shut standard places
- Main retail chain closes 35 shops nationwide, no chapter
- One other main retail chain closes warehouse operations
Genova’s deli menu contains sandwiches, that includes quite a lot of cold-cut meats and cheeses and about 20 completely different salads.
The deli’s sizzling case contains clam chowder, rooster noodle, and minestrone soups, and several other pastas, together with ravioli with meat sauce, cheese tortellini with pesto, lasagna, eggplant parmigiana, polenta, Italian sausage with sauce, Italian meatball with sauce, and roasted rooster.
Genova Delicatessen closings:
- 1105 S. California Blvd. in Walnut Creek, Calif., Feb. 18, 2026 Supply: SFGATE
- 2026 2064 Deal with Blvd., Walnut Creek, Calif., Nov. 15, 2025 Supply: The Mercury Information
- Temescal Plaza, Oakland, April 30, 2016 Supply: SFist
