Maintaining a healthy diet is vital, however once we need to deal with ourselves or we crave some scrumptious consolation meals, Italian delicacies usually involves thoughts.
Sure, hummus is improbable, however for an actual deal with, I would like pasta, pizza, and a few mouthwatering gelato.
Sadly, not even Italian eating places have been proof against the financial challenges within the nation over the previous few years. Rising prices are the important thing problem for the general trade.
Greater than 9 in 10 operators cite meals, labor, insurance coverage, vitality, and swipe charges as vital challenges, based on the Nationwide Restaurant Affiliation.
Furthermore, 42% of operators reported their restaurant was not worthwhile in 2025.
Over the past couple of years, a number of Italian or Italian-American chains have filed for Chapter 11 chapter:
- Bravo Brio Eating places
- Bertucci’s
- Buca Di Peppo
- EYM Pizza (Pizza Hut)
- Folks First Pizza Inc.
- Purple Door Pizza
Fazoli’s closes two extra Michigan places.
Picture by jetcityimage on Getty Pictures
Why are Italian eating places struggling?
Latest wholesome consuming tendencies have led individuals to keep away from yummy, but high-carb meals. However this may’t be the one issue behind Italian eating places’ struggles.
A number of trade experiences reveal three key the explanation why Italian eating places are in danger in 2026.
- Client trade-down: Excessive-income diners would possibly nonetheless be consuming at upscale Italian eating places; nevertheless, middle-income households have been compelled to commerce right down to fast-casual and consuming at house. In January 2026, the food-away-from-home (restaurant and different foodservice purchases) CPI is 4% larger than in January 2025, whereas the food-at-home (grocery retailer or grocery store purchases) CPI is 2.1% larger than in January 2025, based on knowledge from the USA Division of Agriculture.
- Excessive volatility in ingredient costs : Italian delicacies depends closely on wheat (pasta), cheese, and specialised oils, classes which have seen a few of the most fluctuating uncooked ingredient costs, “ultimately affecting profitability and manufacturing costs,” based on Fortune Enterprise Insights.
- Shift in shopper preferences: For instance, in late 2024, Texas Roadhouse formally dethroned Olive Backyard as the highest casual-dining chain by gross sales, signaling a shift in shopper choice from pasta-heavy menus to steakhouses, based on TheStreet’s Kirk O’Neil, who focuses on chapter and restructuring information.
One standard Italian restaurant chain, whose proprietor just lately filed for Chapter 11 chapter, continues to wrestle. And now it is closing extra places.
Fazoli’s closes two extra Michigan restaurant places
Quick-casual Italian restaurant chain Fazoli’s is closing two Michigan places, leaving just some working within the state, reported WOOD-TV in Grand Rapids.
On Feb. 25, there have been closure indicators posted outdoors the Muskegon location at 1780 E. Sherman Blvd. close to US-31 and at 2521 Alpine Ave. NW close to 3 Mile Street.
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The indicators learn: “This location is now closed. Thank you for supporting this Fazoli’s location. We have enjoyed the opportunity to serve you.”
The notices additional direct prospects to the remaining Fazoli’s places in Battle Creek, Lansing, and Jackson. Fazoli’s nonetheless owns and runs one location in Monroe and one close to the Michigan-Indiana border in Mishawaka, reported Click on on Detroit.
Over the previous few months, Fazoli’s has been slowly shutting down places throughout West Michigan. In December, it closed one restaurant at 570 Baldwin St. in Jenison and one other in September at 4615 West Primary St. in Kalamazoo, reported MLive.
Why are Fazoli’s places closing down?
The closures come amid the continued monetary struggles of its dad or mum firm, California-based FAT Manufacturers Inc.
In January 2026, FAT Manufacturers filed for voluntary Chapter 11 chapter proceedings within the U.S. Chapter Court docket for the Southern District of Texas, as reported within the firm’s official press launch.
“Our dynamic portfolio of manufacturers has demonstrated super resilience in a difficult restaurant working atmosphere over the previous few years. We’re properly positioned for long-term profitability and development. The Chapter 11 course of will present us with the chance to strengthen our capital construction to assist our ideas and guarantee they continue to be on the forefront of their sectors,” acknowledged FAT Manufacturers CEO Andy Wiederhorn.
FAT Manufacturers plans to make use of the filings to deleverage the stability sheet, maximize worth for its stakeholders, and assist continued development of its manufacturers, reported TheStreet’s Daniel Kline.
“FAT Brands’ portfolio of 18 restaurant concepts encompasses more than 2,200 locations worldwide. Iconic brands such as Fatburger, Johnny Rockets, and Round Table Pizza, among others, are expected to operate as usual during the Chapter 11 process and will continue to provide their signature dining experiences,” Kline wrote.
In its chapter submitting, the corporate reported property and liabilities each within the vary of $1 billion to $10 billion, a typical broad bracket in Chapter 11 disclosures.
FAT Manufacturers has been overwhelmed by debt tied to securitized borrowings; its whole debt was estimated round $1.5 billion to $1.58 billion attributable to leveraged acquisitions and financing methods.
The restaurant operator had already closed the 32 places earlier than submitting for chapter safety, reported TheStreet’s Kirk O’Neil.
FAT Manufacturers closings:
- Smokey Bones: Boca Raton, Fla.; Orlando, Fla.; Pittsburgh, Pa.; Avon, Ind.; Chattanooga, Tenn.; Louisville, Ky.; Cheektowaga, N.Y.; Charleston, S.C.; Florence, Ky.; Rockford, Unwell.; Plantation, Fla.; Newport Information, Va.; Buford, Ga.; Columbus, Ohio; Grand Rapids, Mich.; Fort Lauderdale, Fla.; Utica, Mich.; North Wales, Pa.; Stoughton, Mass.; Casselberry, Fla.; Maumee, Ohio; Woodbridge, Va.; Wilkes-Barre, Pa.
- Yalla Mediterranean: Burbank, Calif.; Walnut Creek, Calif.; Culver Metropolis, Calif.; Nice Hill, Calif.; Seal Seaside, Calif.; Dublin, Calif.; Fremont, Calif.
- Johnny Rockets: Orange, Calif.; Santa Monica, Calif.
Supply: TheStreet
Fazoli’s: from one location to 208, well-known breadsticks and extra
Fazoli’s was based in 1988 in Lexington, Kentucky, with the purpose of creating recent, high-quality Italian meals with the pace and comfort of a fast-food restaurant.
Its core philosophy is “Fast. Fresh. Italian.” The eatery is very well-known for its signature, limitless garlic breadsticks.
“At Fazoli’s, we promise more than just a meal; we offer an experience where every guest is an integral part of our family. Here, breaking breadsticks is not just a tradition; it’s an invitation to savor every delicious moment. Join us at Fazoli’s, where every visit is a memorable chapter in our shared story of Italian delight,” reads Fazoli’s Our Story web page.
From the one restaurant in Kentucky, Fazoli’s has grown right into a nationwide model with greater than 208 places throughout 28 states, making it one of many largest quick-service Italian eating places within the US.
Apart from breadsticks, Fazoli’s menu choices embody freshly ready pasta entrees, sub sandwiches, salads, pizza, and desserts.
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