Bankruptcy filing puts beloved Southern California restaurants in jeopardy

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Tender Greens, the beloved Southern California salad chain known for its fresh and vibrant dishes, is facing a tough time. The restaurant’s parent company, One Table Restaurant Brands, recently filed for Chapter 11 bankruptcy on July 17 and 18, putting the future of Tender Greens—and its other business, Tocaya—at high risk.

With 24 locations spread across Southern California and the Bay Area, Tender Greens has been a staple for many. However, the chain’s financial woes have sparked concerns about potential closures. Most of its restaurants are located in downtown Los Angeles, an area heavily dependent on office workers, who haven’t fully returned post-Covid.

Harald Herrmann, CEO of One Table Restaurant Brands, cited several factors contributing to the company’s financial struggles. The increased reliance on delivery apps, which charge hefty commission fees, has squeezed profits. According to Herrmann, these apps take up to 18% of each order’s value, plus additional packaging costs, making it tough to maintain profitability without raising prices—something that could drive away customers.

Additionally, the $20-an-hour minimum wage law that took effect on April 1 for large fast-food chains has also impacted operations. Although Tender Greens has fewer than 60 locations, the company had to raise wages to stay competitive in a tight labor market. Inflation and rising operational costs have further compounded the challenges.

While the chain hasn’t confirmed any specific closures yet, there’s hope that a potential buyout could turn things around. For now, Tender Greens is navigating these rough waters with hopes for a brighter future.