Craft beer restaurant chains have struggled since the Covid-19 pandemic, suffering from rising interest rates and rising costs of goods and labor, as well as a reduction in customers who have been fighting economic challenges.
Several of these establishments sought relief by filing for Chapter 11 bankruptcy protection to reorganize their businesses and restructure their debt to continue operating as going concerns, but sometimes had to close operations.
Small regional restaurant and craft beer bar Melt Bar & Grilled, which operated 14 locations in 2017, permanently closed its last remaining location in Lakewood, Ohio, on Jan. 1, blaming the long-term effects of the pandemic. of Covid-19 due to its financial consequences. distress.
Related: Popular beverage chain files for Chapter 11 bankruptcy
On June 14, the craft beer restaurant chain filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Northern District of Ohio, suffering financial hardship from rising food and beverage costs. labor caused by inflation and facing lawsuits filed by owners.
The Lakewood, Ohio restaurant chain specializing in gourmet grilled cheese sandwiches, craft beers, and signature drinks. The restaurant also offered a vegan menu with vegan grilled cheese, vegan macaroni and cheese, tofu wings and other items.
The establishment grew to 14 locations in 2017, but faced financial difficulties following the Covid-19 pandemic in 2020, leading to its demise.
Another craft beer restaurant that filed for bankruptcy and closed in 2024 was Zydeco Brew Werks in Ybor City, Florida, which in January 2024 filed Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Florida and closed its main brewery and restaurant. on Seventh Avenue in Tampa, Florida.
The craft brewery still operates Zydeco Brew Werks at the Tampa Museum of Science and Industry.
World of Beer emerges from Chapter 11 bankruptcy
Finally, some good news in the craft brewery industry came late last year when popular craft beer restaurant chain World of Beer Bar & Kitchen emerged from bankruptcy on Dec. 23 with plans to open four to five franchises annually for the next five years. Reported diving.
Related: Another troubled retail chain files for Chapter 11 bankruptcy
World of Beer had already begun its expansion before emerging from bankruptcy, opening a new location in Fort Worth on December 21 and saying its next new location will open in Annapolis, Maryland, in early 2025.
World of Beer currently has 31 locations in 10 states, according to its website.
The craft brewery restaurant's emergence from bankruptcy came just days before its Viera, Florida, franchise closed operations Dec. 31 after 15 years in business, Florida Today reported.
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World of Beer franchise owners close location
The owners of the Viera franchise decided to retire from the restaurant business after struggling with daily management commitments and financial problems, including a shortage of potential employees and unrealistic salary expectations.
The franchise had been a beer-only establishment and attempted to add a small kitchen to offer light fare, but the rate of pay for production didn't make financial sense, the franchise owners said.
The Tampa, Florida-based craft beer restaurant chain launched in 2007 and grew to 75 locations by 2015 with plans to expand to 100 units, but the company changed course and only had 42 locations open by the end of 2023, according to Nation's Restaurant. News
WOB Holdings, parent of World of Beer, and 11 affiliates, on August 2, 2024, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Middle District of Florida to reorganize, terminate leases and extinguish debts.
The company blamed the negative impact of rising interest rates and lease obligations on cash flows along with inflation, rising operating costs and a slow return to pre-pandemic eating habits.
The debtor listed between $10 million and $50 million in assets and liabilities, including claims for more than $25.6 million owed to Synovus Bank.
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