In 2025, financial strain has taken a toll on several well-known restaurant chains across the U.S. Rising food costs, changing consumer habits, and high lease burdens have pushed many toward Chapter 11 bankruptcy. From casual dining giants to modern fast-casual brands, these chains have faced operational and financial challenges they couldn’t overcome.
Hooters
Hooters filed for Chapter 11 in March 2025, making a major shift in the brand’s future. Over 100 company-owned locations were put up for sale to franchisees as part of its restructuring strategy. Long criticized for its dated concept and facing multiple legal issues over the years, Hooters struggled with modern relevance.
Management blamed mishandling by private equity owners, while industry analysis pointed to deeper cultural and competitive challenges.
Planta
Planta, a plant-based dining chain with a trendy, upscale image, filed for Chapter 11 in May 2025. Although vegan cuisine has gained popularity, the brand’s fast expansion and high operational costs have strained its finances.
The filing included multiple affiliated companies, signaling widespread restructuring. Its target market proved too narrow to sustain its ambitious growth strategy under current economic conditions.
Sticky Fingers Rib House
Sticky Fingers Rib House filed for bankruptcy in March 2025 after struggling with poor leadership and declining customer interest in full-service barbecue. Rising meat prices and growing competition from more modern BBQ outlets added pressure. Once a staple in the Southeastern U.S., the brand failed to modernize its concept or adapt to changing dining patterns. This led to its financial downfall.
Bar Louie
Bar Louie, a gastropub chain once known for its cocktails and late-night crowd, filed for Chapter 11 again in March 2025. This was its second filing since 2020. This time, it closed 13 restaurants in different states. Inflation, high labor costs, and a decline in dine-in traffic were cited as key pressures. The brand also faced criticism for its large and unfocused menu. This added to operational complexity and costs.
On The Border
Tex-Mex chain On The Border filed for bankruptcy in March 2025 and shuttered 77 outlets across the country. Despite past efforts to modernize through technology upgrades and loyalty programs, the brand could not recover from mounting debt and operational losses. With competition from faster and more adaptable Mexican food chains, its appeal eroded over time.
Bertucci’s
Bertucci’s, the casual Italian restaurant known for its brick oven pizzas, filed for bankruptcy in April 2025. It was the brand’s third filing in seven years. As foot traffic declined, rent and staffing costs became unmanageable. Six locations were immediately closed, and the company announced plans to renegotiate several leases. Bertucci’s longstanding presence wasn’t enough to offset the industry headwinds.
DMD Ventures
DMD Ventures, a Florida-based franchisee operating six Twin Peaks restaurants, filed for bankruptcy on January 6, 2025. A $12 million creditor lawsuit accelerated the filing. Though Twin Peaks continues to operate nationally, this case highlighted the financial fragility of franchisees with large debts. It is especially so in regions where real estate and payroll costs are rising sharply.
Pinstripes
Pinstripes, an entertainment-dining hybrid offering food alongside bowling and bocce, filed for Chapter 11 in June 2025. While the concept initially gained traction, the model required high overhead and consistent group bookings to be profitable. As consumer spending slowed and demand for experimental dining softened, the company reported operational losses that it could no longer cover.
Rubio’s Coastal Grill
Rubio’s entered bankruptcy in late 2024, but its major operational downsizing occurred in 2025. Over 40 California locations were closed as the brand downsized to survive. Known for its Baja-inspired menu, Rubio’s couldn’t keep up with rising food and labor costs.
Despite a loyal customer base, it struggled to compete against fast-casual chains with better digital infrastructure and nationwide appeal.
Sticky Finger Joint
Sticky Finger Joint, focused on gourmet chicken tenders, officially filed for bankruptcy in early 2025. Though popular in urban areas, the brand faced unsustainable costs due to rising poultry prices, staffing issues, and intense competition from chains like Raising Cane’s. Its slower expansion and expensive build-outs limited its ability to scale profitability, leading to the filing.
One Table Restaurant
In mid-July 2025, One Table Restaurant Brands, which operates Tender Greens (24 units) and Tocaya (15 units), filed for Chapter 11 bankruptcy protection. The parent company cited mounting debt and weak operational performance across both brands.
They had a reputation for fresh, fast-casual dining aimed at health-conscious consumers. But they couldn’t withstand the inflation-driven cost pressures, labor shortages, and decline in in-store traffic. The filing reflects broader challenges in the fast-casual segment this year.
Red Lobster
Although Red Lobster filed for bankruptcy in mid-2024, its restructuring efforts intensified in 2025 with additional closures and lease terminations. The seafood chain couldn’t withstand volatile shrimp and lobster prices alongside declining dine-in demand. Younger consumers showed less interest in the brand, and attempts to pivot to value-based promotions and takeout failed to reverse the decline.
