Struggling Mediterranean chain Roti declares bankruptcy

This year has been The restaurant industry is plagued by numerous bankruptcieswith Red Lobster, Buca di Beppo and Tijuana Flats among the major chains hit by the trend. And late last week, a struggling Midwest-based Mediterranean chain became the latest to file for bankruptcy in 2024.

Roti, a Chicago-based fast food brand that serves a variety of bowls, salads and pita wraps,announcement On August 23, the company announced that it had filed for Chapter 11 bankruptcy protection. In a statement, CEO Justin Seamonds attributed the decision to various financial issues.

RELATED: 16 Restaurant Chains Closing Locations in 20246254a4d1642c605c54bf1cab17d50f1e

“Our vision of creating happier, healthier and tastier lives is brought to life by delivering exceptional dining experiences to our customers, even in the face of current headwinds. After careful consideration, filing for bankruptcy was the best way to address our challenges, including financial performance, higher costs, mixed site performance and challenging market conditions, while remaining open and focused on delivering Food For A Full Life to every customer,” he said, referencing Roti’s “Food For A Full Life” tagline.

Although Technomic data shows that Roti was one of the fastest-growing restaurant chains before the COVID-19 pandemic, its sales and size have declined in recent years. Its website currently lists 19 restaurants in operation, about half of what it had before the pandemic. Magazine about catering companies reportedLast year, Roti closed four of its restaurants and also saw its systemwide sales drop 12%.

The chain said it intends to use the Chapter 11 bankruptcy filing to seek new investors or a buyer and reorganize its finances while working to keep its other locations open. Roti also plans to continue offering its full menu, loyalty programs and dine-in service at its restaurants, located in Chicago, Minneapolis and Washington, D.C.

11 Restaurant Chains in Trouble in 2024

“As the restaurant industry continues to experience turmoil, we are proud of our transparency with our team and the goodwill we have earned over time with our supplier and landlord communities during these four challenging years,” Seamonds said. “Bankruptcy is a process designed to provide businesses like ours with the tools they need to stay open, retain our exceptional team members, and explore Roti’s future. We hope our loyal customers and flavor lovers will continue to delight us as we take this necessary next step in our journey.”

Consumers shouldn’t be too surprised if more restaurant chains file for bankruptcy before the end of the year. BurgerFi recently hired a chief restructuring officer, the latest sign that bankruptcy could be on the horizon for the struggling gourmet burger chain. Quoting anonymous sources, Bloomberg Last month, Mod Pizza also announced that it was preparing to file for bankruptcy. However, sources said the company has not yet made a final decision and its plans could change.

Subscribe to our newsletter!

Zoe Strozewski