#restaurant-bankruptcy

#restaurant-bankruptcy

Many chain restaurants come on strong, peak, and then slowly disappear, but it's still a shock when a brand that was at the center of food culture for decades shrinks to nothing. Still, that has become an increasing possibility for many restaurants in the struggling casual dining industry. Buca di Beppo and Red Lobster went bankrupt in 2024, Hooters did in 2025, and plenty of big names like Denny's, Applebee's, and Outback Steakhouse are in decline.

Darneille opened Smokecraft Modern Barbecue in 2020 - directly following the year in which his team won over 70 awards on the festival circuit. While he didn't know it then, the timing could not have been worse. Between finding the perfect spot in Clarendon, a neighborhood in northern Arlington County, and fitting it out with all of the telltale signs of a great BBQ restaurant for the grand opening, COVID-19 struck.

Many American families who dined out during the '90s and 2000s have fond memories of Bennigan's. With its cozy Irish pub-inspired decor and menu of hearty American classics, it's no wonder that customers were disappointed when the chain went bankrupt and closed most of its restaurants in 2008. Now, 17 years later, this failed restaurant chain we actually miss is hoping for a comeback, opening new locations and expanding its presence across the country once more.

Restaurants have always been a tough business, made even more so since the COVID-19 pandemic. Restaurant bankruptcies seem to happen on a fairly regular business, even to big name chains such as Red Lobster and TGI Friday's. Filing bankruptcy (especially chapter 11 bankruptcy, which is basically a restructuring) does not necessarily mean the end of a restaurant chain. Some companies have declared bankruptcy more than once, including Friendly's, which has beat it twice and avoided total failure.