Red Lobster May Be Coming Back Thanks to New Owners

"Not the Cheddar Bay Biscuits!" was the cry heard everywhere in May when Red Lobster announced their bankruptcy filing. As a reliable chain restaurant , many customers feared the announcement meant it was ultimately closing its doors forever.

While many blamed the Ultimate Endless Shrimp promotion for the losses, the real financial losses were often cited as the leaseback program from Red Lobster's previous owners, who took the owned properties and leased them back at unsustainable rates.

Fortress Investment Group believes they can turn the chain restaurant back around again and has purchased Red Lobster in hopes of keeping it open.

This isn't the first restaurant chain Fortress purchased out of bankruptcy, either, as it is the parent company of 13 other chains it rescued at the last minute. A court hearing to approve the sale to Fortress will occur on July 29, and it seems likely to pass.

See what other restaurants are at risk this year of closing forever.

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1. Red Lobster

Seemingly out of nowhere, Red Lobster quietly closed roughly 25 locations nationwide. An online restaurant liquidator, TAGeXBrands, announced they'd be live-auctioning off kitchen equipment from several locations until Thursday, May 16.

According to its website, it promised winners the "entire contents of the Red Lobster location they bid on," with locations primarily in California and Florida and several other states. While the details aren't clear, this news comes just one month after Red Lobster was reportedly considering bankruptcy.

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2. Krystal

Founded in the 1930s, Krystal has been slinging the original smash burgers for nearly 100 years. But that doesn't mean it's immune from a challenging economic climate.

During the pandemic, Krystal filed for bankruptcy, and things haven't improved in the years that have followed. There's new ownership, so the tides could change, but burger and fry fans should keep their fingers crossed.

3. Fuddruckers

While Fuddruckers’ made-from-scratch hamburger buns may be beloved by its fans, its 1980s star is waning. The burger and shake chain has closed so many locations that it’s now down to 60 spots to get a fresh bun and a grilled patty.

It came under new ownership recently, but that may not be enough to save this classic burger favorite.

4. Steak n’ Shake

A decrease in restaurants from 626 in 2018 to 493 in 2023 isn’t a great sign for Steak n’ Shake. But, for those who can’t get enough of its famous Steakburgers or its iconic Frisco sauce, they won’t be surprised that its sales aren’t actually down.

That could be the saving grace for now — even if it’s at odds with the closures.

5. Applebee’s

Applebee’s had its heyday, and while it’s tried to continue to bring customers through its doors with new dishes and offerings, it’s just not working. People want organic, local — that’s not Applebee’s.

It has closed about 300 locations since 2017, and unless things change dramatically (as in people start falling for their happy hour gimmicks), you might not be able to get one of its chicken quesadillas for much longer.

6. Buffalo Wild Wings

If you’ve ever watched a football game over wings and beer at Buffalo Wild Wings, you understand the chain’s appeal. Unfortunately, that doesn’t seem to be enough for customers.

First, there was the court appearance over serving chicken breast disguised as boneless wings. Then, all of its Canadian locations closed. Unless there’s a significant turnaround in the near future, Buffalo Wild Wings’ days could be numbered.

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7. Piccadilly Restaurants

Piccadilly Restaurants first opened its all-you-can-eat cafeteria in the 1930s. Over the next several decades, it became a favorite of families looking to feed their broods.

However, its popularity has waned, mainly as people grew squeamish about buffets during the pandemic, and locations throughout the South have shuttered. Rumor is it might be closing time on the buffet line.

8. Old Country Buffet

With only 13 locations remaining from its height of 600, Old Country Buffet has been on the downswing. And that’s in large part due to repeated bankruptcy filings.

First, there was 2008, then 2012, then 2016, then, just when you wondered how many times one company can file for bankruptcy, there was 2021. It’s unclear why they haven’t pulled the plug yet, but this could be the year.

9. Quiznos

Everybody loves toasted subs, right? Maybe not. The home of the toasted sub, Quiznos, has seen one of the most dramatic restaurant chain declines.

The fast-casual chain had 4,700 locations across the world at its peak. Now, it hovers under 200. Rumors are that bad business practices may have played a role in the rapid fall.

10. White Castle

The burger joint that inspired grocery store freezer food, a movie, and more was founded in 1921.

However, the company faces a $17 billion lawsuit regarding a digital identification system using fingerprints that violated Illinois privacy laws. A payout of the amount could ruin most companies.

11. Sizzler

A buffet steakhouse had a time and place, but as buffets continue to plummet in popularity, so have Sizzler’s sales. The restaurant has been on the decline for years. Currently, less than 100 locations exist nationwide. This could be the year their last steak is sizzled.

12. Ruby Tuesday

Could it be time to say goodbye to the salad bar? Ruby Tuesday, the beloved American chain, filed for bankruptcy in 2020.

However, that wasn’t the end of its story. The restaurant continues to exist across the country, but the number of locations is just over 200, roughly a 70% decrease from its peak.

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13. Boston Market

While Boston Market still has over 300 locations, it’s been in a serious decline from its peak of 1,200 restaurants. Part of that decline may be due to its poor treatment of its employees.

There have been allegations of mistreatment and outstanding wages, and those missing wages led to a significant payout plus fines to the wronged franchisees. If it’s going to survive, Boston Market needs a major overhaul in how it treats its own.

14. Hooters

While Hooters may be a well-known name in the cultural lexicon, its ubiquity has declined. It peaked at 430 restaurants but now is down to just over 300.

The chain restaurant saw major declines during the pandemic, and other organizational issues are adding to its troubles.

15. Ruth’s Chris

Closing one location doesn’t necessarily spell trouble — except when it’s an iconic location. Ruth’s Chris closed its landmark New York City steakhouse, a fixture near Times Square.

Currently, the closure doesn’t appear to be spreading to other locations, but it does draw attention to what was once a fixture in the city.

Bottom line

Each chain restaurant on this list faces unique challenges in trying to get ahead financially .

But they also share the common thread of dedicated individuals working tirelessly to deliver exceptional dining experiences.

As they navigate 2024, let's celebrate their resilience and the successes they achieve along the way.

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