At the same time the filing was underway, Minneapolis-based franchiser Famous Dave's of America Inc. moved to terminate 3 'Lil Pigs of PA's franchise agreement because the smaller company failed to pay $120,000 in royalty payments.
3 'Lil Pigs of PA is part of a growing trend. Other local franchise owners Quick Service Foods-Tampa Inc. and Wetco Restaurant Group LLC, which own Church's Chicken franchises, and CCI of West Palm Inc., which owns Friday's Inc. restaurants, fell into bankruptcy within the past year.
But the problem isn't just endemic of local franchisees as whole chains have also befallen the same fate. Other resturant chains such as Sam Seltzer's Steak Houses of America Inc, Roadhouse Grill Inc., Buffets Inc. and Steakhouse Partners Inc. have all filed for Chapter 11.
So who's next? Maybe Metromedia Restaurant Group. The owner of the Bennigan's Grill & Tavern, Ponderosa, Bonanza and Steak and Ale chains has been trying to avoid filing for Chapter 11 after it defaulted on its credit facility last month. - Maria Woehr and Neil Malcolm
| Bankrupt Restaurant Chains |
Filing Date |
The Restaurant |
| 06.27.08 |
Sam Selter's Steakhouses of America Inc. |
| 05.16.08 |
Steakhouse Partners Inc. |
| 02.29.08 |
Quick Service Foods-Tampa Inc. (Church's Chicken franchisee) |
| 01.22.08 |
Buffets Inc. |
| 01.11.08 |
Sports Cafe Holdings plc |
| 09.28.07 |
Wetco Restaurant Group LLC (Church's Chicken franchisee) |
| 08.19.07 |
CCi of West Palm Inc. |
Source: BankruptcyInsider
|
Restaurant operators are on the grill due to the rising cost of food and transportation. The latest to fall into Chapter 11 is local franchise owner 3 'Lil Pigs of PA, which operates barbecue restaurants under the Famous Dave's brand. 
