Buca di Beppo files for Chapter 11 bankruptcy after years of declining customers

Buca di Beppo has hit a rough patch, declaring bankruptcy on Monday after seeing a drop in patronage over time.

The well-known Italian eatery has sought Chapter 11 bankruptcy protection in the Northern District of Texas . The chain is looking to streamline its business and spruce up the customer experience through this reorganisation.

According to CBS News, Buca di Beppo struggled with limited demand during the pandemic and hasn't managed to bounce back. The restaurant's takings for the first five months of 2024 were down by 10 percent compared to the previous year, at $74.8 million.

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The company is also wrestling with debts of around $10 million, which includes about $1.36 million from unredeemed gift cards.

President Rich Saultz commented: "This is a strategic step towards a strong future for Buca di Beppo. While the restaurant industry has faced significant challenges, this move is the best next step for our brand. By restructuring with the continued support of our lenders, we are paving the way toward a reinvigorated future."

"Buca di Beppo has been a beloved gathering place for celebrations and memorable meals for many years, and we are enthusiastic about entering this next phase of our brand's story."

A restructuring is on the cards for 44 Buca di Beppo locations, and there's even talk of opening a new outlet.

Despite the financial woes, it's business as usual at the restaurants, with all gift cards, bookings, and promotional offers still valid and honoured.

William Snyder, Chief Restructuring Officer of Buca C, LLC, remarked: "We believe this path will best allow us to continue to serve Buca's patrons and communities for many years to come. We are open for business in 44 locations, and we expect day-to-day operations to continue uninterrupted. We anticipate moving through this process as quickly and efficiently as possible to emerge as a stronger organization built for the future."

The firm did shut down 18 underperforming stores this year, including a dozen in the previous month alone. The closed locations were:

• 7111 West Ray Road in Chandler, Arizona
• 1249 Howe Ave. in Sacramento, California
• 615 Flatiron Marketplace Drive in Broomfield, Colorado
• 1351 South Orlando Avenue in Maitland, Florida
• 1030 Auahi Street in Honolulu, Hawaii
• 6045 East 86th Street in Indianapolis, Indiana
• 112 Kentlands Blvd in Gaithersburg, Maryland
• 38888 Six Mile Road in Livonia, Michigan
• 12575 Hall Road in Utica, Michigan
• 44 Wolf Road in Atlantic City, New Jersey
• 1900 Pacific Avenue in Colonie, New York
• 10915 Carolina Place Parkway in Pineville, North Carolina
• 60 East Wilson Bridge in Worthington, Ohio
• 3 East Station Square Drive in Pittsburgh, Pennsylvania
• 6600 Robinson Centre Drive in Pittsburgh, Pennsylvania
• 2745 Paper Mill Road in Wyomissing, Pennsylvania
• 202 West 200 South in Salt Lake City, Utah
• 935 East Fort Union Blvd in Midvale, Utah