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Overwhelmed California Pizza Kitchen gives in to the pressure, Files Chapter 11 Bankruptcy

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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.

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Drew Simms
Drew has always been known as a media jockey, founded a professional business, and a news blog covering the Apple ecosystem. He has served as News Editor and Managing Editor at The Next Web and is now Editor-In-Chief at Drew Reports News. He has made a name for himself in the media world as a writer and editor, relentlessly covering various topics. Contact Drew at drew@drewreportsnews.com.
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