The fast-food trade has confronted financial challenges over the past two years, with a number of ideas dealing with restaurant closures and, in some circumstances, chapter filings.
Fierce competitors, rising labor and meals prices, and costly lease charges have been blamed for the monetary misery that has led many fast-food franchisees to battle to remain afloat.
Fried hen chains struggled
The fast-food hen sector endured Chapter 11 chapter filings from Popeyes franchise operator RRG Inc. in February 2024 and New York-based chicken-fingers fast-food chain Sticky’s, which filed its petition in April 2024.
Suburban Chicago hen chain Harold’s Hen of Homewood filed for Chapter 11 chapter safety in July 2025 to reorganize its enterprise and proceed working.
De’nsite Inc., the Homewood, Sick.-based operator of the Harold’s Hen areas in Homewood, South Holland, and Olympia Fields, Sick., filed its Subchapter V petition within the U.S. Chapter Courtroom for the Northern District of Illinois, itemizing as much as $50,000 in property and $500,000 to $1 million in liabilities.
The pizza sector has been hit arduous, as a minimum of a half-dozen chains have filed for chapter in 2025.
Among the many pizza chains submitting for Chapter 11 chapter have been Domino’s Pizza franchisee Folks First Pizza on March 26, 2025, Zeppe’s Tavern on March 31, 2025, Bertucci’s Eating places on April 24, 2025, Little Caesars pizza franchisee Purple Door Pizza on July 15, 2025, Backdraughts on July 23, 2025, and Bosque Brewing Firm, operator of two pizza eating places and 9 craft brewery areas in New Mexico, which filed on Oct. 6.
Wave of pizza restaurant bankruptcies
- Domino’s Pizza franchisee Folks First Pizza, March 26, 2025,
- Zeppe’s Tavern, March 31, 2025
- Bertucci’s Eating places, April 24, 2025
- Little Caesars pizza franchisee Purple Door Pizza, July 15, 2025
- Backdraughts, July 23, 2025
- Bosque Brewing Firm, Oct. 6, 2025.
Quick-food beverage franchises have additionally confronted monetary misery as Phoenix-based Tropical Smoothie Cafe franchisee JND Tropics LLC, filed for Chapter 11 chapter safety on June 12, 2025.
The Atlanta-based smoothie franchise chain Tropical Smoothie Cafe, which was established in 1997, has over 1,500 areas in 44 states and Washington, D.C. The chain opened 161 new cafes in 2024, with 70% launched by current franchisees.
Jamba franchisee Valley Juice LLC filed for Chapter 11 safety. Supply: Shutterstock
Valley Juice recordsdata for Chapter 11 chapter
And now, Jamba Juice franchisee Valley Juice LLC, which operates over 20 franchises within the San Francisco Bay Space, filed for Chapter 11 chapter safety after a proposed sale of 18 of its areas fell by in the summertime of 2025, San Francisco Enterprise Occasions reported.
The debtor filed its petition looking for to reorganize its companies and to pursue a sale of its property or proceed working as a going concern.
The Pleasanton, Calif.-based franchisee filed its petition within the U.S. Chapter Courtroom for the Northern District of California on Oct. 8, itemizing over $639,000 in property and about $25 million in liabilities, Bondoro reported.
The debtor’s largest unsecured collectors embody Maddie Pizza Hut, owed over $4.28 million on an intercompany payable and likewise $1.07 million on a mortgage; Sonnshine LLC, owed over $3.5 million on an intercompany payable; and San Francisco Centre L.P., owed over $1.57 million on a business lease.
Valley Juice prime unsecured collectors
- Maddie Pizza Hut, owed over $5.35 million
- Sonnshine LLC, owed over $3.5 million
- San Francisco Centre L.P., owed over $1.57 million
The debtor reportedly blamed lingering results from the Covid-19 pandemic, diminished foot site visitors, and overmarket leases for its monetary misery.
Financially distressed eating places should search options
“In 2025, financially distressed restaurants must explore several solutions, including leveraging technology, optimizing operations, and focusing on customer experience,” regulation agency McDonald Hopkins’ member Scott Opincar wrote in an April 2025 weblog on the agency’s web site.
“Restaurants can also consider expanding revenue streams, implementing data-driven decision-making, and exploring alternative financing options,” Opincar wrote.
Jamba, which has 727 areas within the U.S., affords a wide range of smoothies, iced drinks, fruit bowls, and different favorites resembling sausage, egg, and cheese sandwiches, ham, Swiss cheese, and egg sandwiches, hen empanadas, Belgian waffles, pretzels, and mozzarella and herb bites, in keeping with its web site.
Jamba Juice, established in San Luis Obispo, Calif., in 1990, rebranded as Jamba on June 6, 2019.
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