SYgle>Industry Information>Restaurant Chain Buca Di Beppo Files For Bankruptcy

Restaurant Chain Buca Di Beppo Files For Bankruptcy

Column: industry Tag: Buca di Beppo,Chapter 11 Bankruptcy,Italian Cuisine,Restaurant Chain Published: 2024-08-09 10:11 Source: www.mashed.com Author: CHRISTINE DULION

Buca di Beppo is a beloved Italian chain that evokes the nostalgic feeling of eating spaghetti and meatballs in Nonna's cozy dining room. But as lovely as that sounds, the restaurant hasn't been doing well lately. On August 5, Buca di Beppo said it had filed for Chapter 11 bankruptcy. But before we start sounding the death knell for this Italian eatery, there are a few factors about this move to keep in mind.

The restaurant chain has already closed many of its locations in recent years, so the news isn't a total shock. However, the idea behind voluntarily filing for bankruptcy is to focus on the remaining locations (it's also opening one new store) and get a better handle on its operations. A court filing on the action states the company has faced economic headwinds just like many other restaurants in recent years, putting the blame on the pandemic, inflation, dwindling demand, and rising prices. These same pressures played a part in Red Lobster's fall earlier this year when it filed for bankruptcy in the face of mounting debt.

Buca di Beppo's court filing says the company's sales have gone down by about 5% this year compared with last year and about 14% since 2021. It's clear that something must be done. Still, Buca di Beppo is optimistic about its future and believes this bankruptcy filing is a step in the right direction for improving its outlook.

Buca di Beppo's closed locations

The restaurant got its start in the basement of a Minneapolis apartment building in 1993. Buca Little Italy, as it was called at the time, was a big hit with diners and just the beginning of the company's expansion. And no wonder — the concept of à la carte dishes meant to be passed around the table family style brought people together over massive bowls of fettuccine alfredo, chicken parm, and half-pound meatballs. The chain was listed on the stock market in 1999 and eventually had more than 100 locations around the world.

Since trouble started brewing for Buca di Beppo, many of its locations have bit the dust. Just this year, 18 stores have been shuttered, and a whopping 12 of those were just last month. That leaves the chain with 44 remaining restaurants in the U.S. (there are two also listed in the Philippines). According to Buca's website, fans can still visit an open Buca di Beppo in the following states: Arizona, California, Florida, Illinois, Indiana, Kentucky, Minnesota, Missouri, Nevada, New Mexico, Ohio, Tennessee, Texas, and Washington.

The future of Buca di Beppo

Often, the word "bankruptcy" sparks whispers and rumors of a company's imminent downfall. But let's not add Buca di Beppo to the list of chain restaurants we might lose in 2024 just yet. As the company made clear in its court filing, the plan moving forward is to revitalize the brand by making companywide improvements. This includes reducing its debt, offloading bad lease agreements, and improving store operations overall. It also plans to keep the remaining locations running business as usual with "as minimal interruption as possible," according to the filing. So, there's definitely room for Buca di Beppo to use this Chapter 11 bankruptcy as an opportunity to turn the whole ship around and get back to being a profitable company.

If you're familiar with the story behind Buca di Beppo, then you know its concept is pretty solid. For diners who want a cozy, family-style meal without making a mess in the kitchen, Buca's the place to go. So, those of us who love its kitschy ambience, pope-themed rooms for large groups, and fist-sized meatballs will be keeping our fingers crossed for Buca to bounce back.

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