Restaurant bankruptcies have surged this year, mirroring a broader rise in corporate failures. At least ten restaurant chains, excluding franchisees, have filed for bankruptcy in 2024, with August alone seeing three notable Chapter 11 filings.

High labor costs, reduced consumer spending, and the end of pandemic-era aid are key factors.

Chains like BurgerFi and Mod Pizza are also struggling, with BurgerFi expressing doubts about its future. Meanwhile, Chapter 11 filings across industries have risen by 49% as of mid-August. Notable filings include Roti, Buca di Beppo, and Red Lobster, each citing a mix of financial pressures and strategic missteps.

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