5 Chain Restaurants You Grew Up With That Went Bankrupt In The Past Year

Chain restaurants come and go, some of which are fondly remembered while others are doomed to fade into obscurity. With rising costs of food and rent, corporate restructuring, and more, there are an unfortunate number of chain restaurants that you likely grew up loving that have filed for bankruptcy in the past year. Among these beloved household names are TGI Friday's, Red Lobster, Bucca di Beppo, Rubio's Coastal Grill (aka Rubio's Baja Grill), and Arby's Franchisee Miracle Restaurant Group. Despite the number of tell-tale signs that a chain restaurant is about to go bankrupt the bankruptcy announcements have left fans fraught with disappointment.

One thing to keep in mind is that there are different types of bankruptcy for which a restaurant can file, which include Chapter 7, Chapter 11, and Chapter 13. Depending on the type of bankruptcy filed and what terms are negotiated, there can be varying outcomes, some of which might mean that a restaurant does not have to close permanently. Of your childhood favorites, some of these restaurants may yet be able to hang on a little longer, while others could very well be gone for good.

In October of 2024, both Columbus, Ohio and Buffalo, New York said goodbye for good to TGI Friday's as 50 locations shut down. On November 2nd, 2024, the popular chain restaurant's parent company filed for Chapter 11 bankruptcy protection, citing financial strain from the COVID-19 pandemic, and sought to sell off corporate-owned assets. This filing affected only the corporate-owned locations and not the franchisees, allowing for those locations to continue operations.

Since opening its first location in 1965 in New York, TGI Friday's paved the way for other American casual dining restaurants with a consistent menu and value-priced food. Maligned in the '90s cult film Office Space for the required "flair" that waitstaff used to sport on their suspenders, the restaurant was home to happy hour appetizers and a generally low-key atmosphere. For those that still hold TGI Friday's in high regard, there's hope yet to enjoy your favorite loaded potato skins: Simply browse the website to find your nearest location to enjoy all of the delicious deals.

Whether you're a fan of using its famous Cheddar Bay biscuits to upgrade a chicken pot pie or enjoying your favorite "Signature Feasts," Red Lobster has steadily become synonymous with seafood indulgence. In May of 2024, Red Lobster filed Chapter 11 bankruptcy and planned to auction its restaurant chain to the highest bidder. Thai Union Group, which owned a 25% stake in the company, cited similar concerns as TGI Friday's in its bankruptcy filing including rising costs, interest rates, and a decline in demand due to the COVID-19 pandemic.

Though many tried to point a finger at Red Lobster's "Endless Shrimp" campaign as the culprit for its bankruptcy filing, there is much more to the story than meets the eye. One of the larger issues was real estate and the costs of rent across numerous locations. Adding to this were supply chain issues and frequent changes in management that dwarfed the promotional shrimp debacle in importance. Luckily, in September of 2024, Red Lobster was rescued from bankruptcy and is now run by P.F. Chang's CEO Damola Adamolekun, which is a much more positive outcome for lobster lovers who almost had to bid adieu to their most-visited seafood spot.

Known for large portions, maximalist decor, and an enduring presence across the U.S. since the early 1990s, Buca di Beppo has played host to celebrations of every kind imaginable and plenty of core childhood memories. The family-style Italian chain restaurant is a beloved classic with its multiple themed dining rooms and a special seat known as The Kitchen Table, where guests can sit and watch dishes being prepared. Despite the warm memories and dishes, the restaurant filed for Chapter 11 bankruptcy in August of 2024, citing revenue issues due to the COVID-19 pandemic, a decline in customer demand, and over $1 million in debt from gift cards that customers hadn't yet redeemed.

Buca di Beppo shuttered 18 of its lowest performing locations — leaving 44 remaining — and was planning to open one new restaurant at the time of its Chapter 11 filing. This move was emphasized by Buca di Beppo president Rich Saultz as strategic restructuring with the intent of positioning the chain for future success, though fans and former employees might opine otherwise. The future still remains to be seen for Buca di beppo and its smattering of remaining locations, so it may be worth seeking out your nearest restaurant for a taste of nostalgia before it's too late.

A San Diego staple of seafood delights, Rubio's Coastal Grill has been a spot for quick and refreshing dishes since 1983. With a menu boasting 40 dishes inspired by the cuisine of Baja, Mexico and a number of West coast locations, the restaurant became best known for its Baja-style fish tacos. Having first filed for Chapter 11 bankruptcy in 2020 as a result of the COVID-19 pandemic, the restaurant chain was able to successfully emerge with a more successful store footprint. Sadly, due to further rising operational and food costs, the company declared bankruptcy once again in the summer of 2024 after shuttering 48 locations in California to the dismay of longtime fans.

Despite these circumstances, the remaining Rubio's locations are still hanging on, albeit amounting to only 86 restaurants from what was once almost 200. Currently, only California, Nevada, and Arizona are home to operating Rubio's. As of August 2024, still in the midst of bankruptcy proceedings, the company appears to have found a buyer in a firm run by former Famous Dave's CEO Jeff Crivello. While the future remains to be seen for this once briny and bright chain, fans are still holding out hope for their fish taco favorite to weather the storm.

In June of 2024, Arby's franchisee, Miracle Restaurant Group, filed for Chapter 11 bankruptcy for the second time since 2010. At the time of its first filing, the group operated more than 60 Arby's locations. By the time of its second filing, the group ran only 25 restaurants in Indiana, Texas, Illinois, Mississippi, and Louisiana. Per the franchisee, the reasons for filing bankruptcy a second time included the effects of the COVID-19 pandemic, increasing supply costs due to inflation, and issues with the IRS not providing a timely refund for Employee Retention Tax Credits worth more than $3 million.

The first time that Miracle Restaurant Group filed for bankruptcy saw successful results in its restructuring with creditors being paid in full; however, the current economic climate presents greater challenges and difficulties than ever before. Though Miracle Restaurant Group sought financial relief from Arby's, it wouldn't have been enough to save the franchisee from having to file Chapter 11. It's worth noting that this bankruptcy directly affects the franchisee and not the overall parent company of Arby's, meaning that there are still over 3,000 Arby's locations operating in the United States.