Yet another casual chain files for bankruptcy

don pablos

Adding to a growing list of restaurant entities that have recently gone bankrupt, the parent company of the Don Pablo’s casual chain has filed for Chapter 11 bankruptcy protection.

The company, Rita Restaurant Corp., pinned the filing on casual dining’s decline as well as fast-casual Mexican chains’ growing prominence, the Wall Street Journal said, citing court papers.

It owns 16 Don Pablo’s units in addition to one Hops Grill and Brewery, according to the WSJ. An affiliate of Food Management Partners manages the chain, which it acquired in 2014.  

Several other brands run by FMP are currently in bankruptcy, including Zio’s Italian Kitchen.

Just yesterday, news broke that the operator of the Souplantation and Sweet Tomatoes buffet chains had filed for Chapter 11 bankruptcy protection, following similar moves by the respective operators of Logan’s Roadhouse and the Champps, Bailey’s and Fox & Hound chains.

Fast-casual Cosi's franchisor also filed for bankruptcy last week. 

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Leadership

Meet the restaurant fixer who now owns Etta

Tech entrepreneur Johann Moonesinghe suddenly finds himself leading a growing group of restaurants. His secret? He doesn't expect to make a profit.

Financing

Looking for the next Chipotle? These 3 chains are already there

The Bottom Line: Wingstop, Raising Cane’s and Jersey Mike’s have broken free from the pack of well-established growth chains. Here’s why this trio stands out.

Financing

For Starbucks, 2 years of change hasn't yielded promised results

The Bottom Line: The coffee shop giant’s sales struggles worsened earlier this year, despite a flurry of efforts to improve operations and employee satisfaction.

Trending

More from our partners