A popular chain of casual restaurants has filed for bankruptcy, saying it struggled to recover from the pandemic.
World of Beer Bar & Kitchen and several of its affiliated companies filed for Chapter 11 bankruptcy last week.
The company reported debts of up to 50 million dollars and attributed its situation to problems on issues arising from the pandemic, including customers not returning after closures and rising costs for food, labor, business loans and rent.
The company, known for its selection of around 500 craft and bottled beers, has seen sales drop 13 percent year-over-year.
This change of fortune comes just a decade after being named one of the 10 fastest-growing companies in the country.
World of Beer Bar & Kitchen filed for Chapter 11 bankruptcy last week
World of Beer is the latest restaurant chain to run into trouble
In 2007, World of Beer opened its first location in Tampa, Florida, during the boom in interest in craft beer.
By 2015, it had grown to 75 branches in 20 states and planned to have 100 by the following year.
Last year, World of Beer closed 14 of its restaurants, bringing the number down to 34, but more closures are possible as it goes through the bankruptcy process. The restaurant business was reported.
The company plans to restructure and remains “optimistic about the future,” according to a press release.
“We are confident in our future, backed by a solid plan and a dedicated team committed to delivering exceptional dining experiences,” said Paul Avery, President and CEO of World of Beer.
‘Our focus remains on serving our loyal customers, supporting our employees and franchisees, and positioning our restaurants for continued growth and success in a competitive landscape.’
World of Beer is the latest restaurant chain to battle the tough environment of rising operating costs and inflation that is leaving customers increasingly demanding when it comes to eating out.
Most recently, popular Italian restaurant chain Buca di Beppo closed 13 of its underperforming locations and filed for bankruptcy.
Red Lobster is one of the largest chains to have seen its share of troubles, filing for bankruptcy in May and closing nearly 100 restaurants.
Just one month later, Mexican chain Rubio’s closed 48 branches in the state and also declared bankruptcy.
Also in June, BurgerFi, which markets itself as an upmarket McDonald’s, sparked concerns of mass closures after revealing it is considering bankruptcy.
Hooters has also closed dozens of its restaurants in recent months, blaming rising rent and food costs.