California restaurant chains face uncertainty as parent company files for bankruptcy

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Major news in the restaurant world: One Table Restaurant Brands, the company behind the popular Tender Greens and Tocaya chains, has hit a major bump in the road by filing for Chapter 11 bankruptcy. This move affects 24 Tender Greens restaurants across California and 15 Tocaya spots in California and Arizona, impacting over 1,100 employees including those at their corporate headquarters in Los Angeles.

One Table’s CEO, Harald Herrmann, shared the tough decision with the public, saying, ‘We explored every option to steer clear of bankruptcy, but restructuring our debt is the best way forward for our team, our vendors, and our valued guests.’ Herrmann is hopeful that this process will allow the company to bounce back stronger and more competitive in a tough market.

Since 2022, One Table has been on the hunt for a buyer, attracting interest from 22 potential suitors. However, none of these leads resulted in a deal, largely due to the company’s heavy debt burden and some struggles with the Tocaya chain. This bankruptcy is part of a larger trend affecting the restaurant industry, which has seen a slew of high-profile closures, including Red Lobster and Tijuana Flats. Rubio’s Coastal Grill also recently cited soaring labor costs in California as a key factor in their troubles.

As One Table embarks on this restructuring journey, the future of Tender Greens and Tocaya remains uncertain. The company’s leadership is banking on this financial overhaul to set a more stable course for the future. With the restaurant industry facing its own set of challenges, it will be interesting to see how One Table emerges from this tough spot.

Keep an eye out as we continue to track developments and see how this unfolds for these well-known California brands.