Olive Garden competitor with 44 branches abruptly closes restaurant before filing for bankruptcy – five states at risk

A popular Italian-American chain abruptly closed a location last week, shortly before filing for Chapter 11 bankruptcy.

Olive Garden’s competitor, Buca di Beppo, also had to close in five other states.

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Founded in 1993 in Minneapolis, Minnesota, Buca di Beppo serves family-style Italian dishes at its 44 locations.

In early August, the chain closed a restaurant at 15350 South 94th Avenue in Orland Park, Illinois – 20 miles from Chicago.

About a dozen other Buca di Beppo locations were closed around the same time.

The states with the most recent locations to close include Arizona, California, Pennsylvania, Utah and Michigan.

FINANCIAL PROBLEMS

The closures occurred shortly before the company announced its filing for Chapter 11 bankruptcy on August 5.

The Italian-American chain attributed its financial difficulties to factors such as rising costs and difficulties in hiring employees, according to court documents.

According to USA Today, Buca di Beppo owes around $50 million to 30 creditors.

The chain’s financial decline began around the pandemic, when guest numbers and revenue declined, and it has never fully recovered.

The restaurant’s revenue for the first five months of 2024 fell 10% to $74.8 million compared to the same period last year.

According to Restaurant Business Magazine, Buca di Beppo has been gradually closing locations due to COVID-19, closing about 20% of its stores in the last month.

Buca di Beppo locations that have closed so far this year include:

• 7111 West Ray Road in Chandler, Arizona
• 1249 Howe Ave. in Sacramento, California
• 615 Flatiron Marketplace Drive in Broomfield, Colorado
• 1351 South Orlando Avenue in Maitland, Florida
• 1030 Auahi Street in Honolulu, Hawaii
• 6045 East 86th Street in Indianapolis, Indiana
• 112 Kentlands Blvd in Gaithersburg, Maryland
• 38888 Six Mile Road in Livonia, Michigan
• 12575 Hall Road in Utica, Michigan
• 1900 Pacific Avenue in Atlantic City, New Jersey
• 44 Wolf Road in Colonie, New York
• 10915 Carolina Place Parkway in Pineville, North Carolina
• 60 East Wilson Bridge in Worthington, Ohio
• 3 East Station Square Drive in Pittsburgh, Pennsylvania
• 6600 Robinson Center Drive in Pittsburgh, Pennsylvania
• 2745 Paper Mill Road in Wyomissing, Pennsylvania
• 202 West 200 South in Salt Lake City, Utah
• 935 East Fort Union Blvd in Midvale, Utah

Following the closures, Buca di Beppo plans to restructure 44 restaurants and open a new location, according to a press release.

“Although the restaurant industry has faced significant challenges, this move is the best next step for our brand,” said company president Rich Saultz.

“By restructuring with the continued support of our lenders, we are paving the way to a stronger future. Buca di Beppo has been a popular gathering place for celebrations and unforgettable meals for many years and we look forward to entering this next phase of our brand’s story.”

Restaurants like Buca di Beppo are struggling to survive as inflation makes consumers more cautious about spending on unnecessary goods.

In addition, the chains are struggling with rising food and labor costs, which are increasing their financial pressure.

Many restaurant chains have closed locations.

A competitor of Chuy’s confirmed its last day of business before closing permanently after 52 years.

In addition, Subway closed dozens of branches without warning because even the employees were completely taken by surprise and left without pay.