California Pizza Ktichen is the latest resturant chain to declare bankruptcy as the pandemic and also its financial obligation hinders its operations.
The 35-year-old Los Angeles-based pizza chain filed for Chapter 11 Thursday, explaining that the procedure will help it “reduce its long-term debt load, and quickly emerge from bankruptcy as a much stronger company.”
It warned that it will close unprofitable locations, yet didn’t claim the number of its 200 international dining establishments will be affected.
The short-term closure of interior eating has additionally been ruthless for the chain, because on-premise dining makes up 80% of its sales, the restaurant said in a filing.
Revenues are currently down 40% compared to the exact same time a year back, it stated.
Restaurants, in particular with chains like CPK, have been having a hard time in recent couple of months. The closure of in-person dining in some states as well as the rough business economics of using third-party apps like Uber Eats or DoorDash– which increase dining establishments’ expenses and also urge restaurants goest to eat at home– is a losing plan for resturants.
In recent months, Chuck E. Cheese’s parent company, Italian chain Vapiano, Le Pain Quotidien’s US unit and FoodFirst Global Restaurants, which owns Bravo and Brio, have all went the bankruptcy route.
Even large franchisees, like NPC International which operates thousands of Pizza Hut and Wendy’s locations, have recently been maneuvering the Chapter 11 process.