Well-known Italian restaurant group turns to Chapter 11 restructuring
Subscribe to our free newsletter today to keep up to date with the latest food industry news.
One of the nation’s most recognizable Italian dining operators has filed for Chapter 11 bankruptcy protection, underscoring the stress on casual dining. The company, which manages nearly 60 locations under Italian kitchen and grille banners, reported both assets and liabilities between 50 million and 100 million in recent court filings. Creditors include landlords, suppliers, and service providers owed hundreds of thousands of dollars.
Rising costs and debt pressures driving restructuring
The pressures behind the bankruptcy reflect industry trends. Food away from home prices rose 3.9 percent in July 2025, with full-service meals up 4.4 percent from a year earlier. At the same time, traffic has slipped, with Black Box Intelligence reporting same-store visits down 1.3 percent in January and July showing the weakest two-year growth since early 2023.
Higher wages, rent, and food bills have squeezed margins. Court documents show the chain owes money to dozens of landlords, distributors, and vendors. With liabilities potentially topping 100 million, restructuring became unavoidable.
How the filing fits into the wave of restaurant bankruptcies
The Italian chain’s court action adds to a series of industry bankruptcies. Buca di Beppo filed in 2024 and sold to its lender for 27 million after receiving no competing bids. Bertucci’s, another Italian brand, filed in April 2025, its third bankruptcy since 2018. Red Lobster, once the largest seafood brand in the United States, filed in May 2024 and secured 100 million in financing to keep restaurants open while restructuring.
The pattern is consistent: rising menu prices and uneven traffic are straining operators. Dozens of brands, from national chains to regional players, have entered bankruptcy during the past 18 months.
The broader state of casual Italian dining
Italian casual dining, long a fixture in suburban malls and shopping centers, faces particular strain. Consumer spending has shifted toward faster service formats, takeout, and delivery. Younger diners often prefer fast casual brands offering value, customization, and speed.
Legacy Italian brands carry larger dining rooms, higher staffing needs, and heavier leases. Analysts note these models, once profitable, have become less adaptable. Without reinvention, many risk contraction.
Italian food remains popular in the United States, with pizza and pasta among the most consumed categories. The challenge is not the cuisine but the model. Restaurants with large dining rooms and slower service face stiff competition from streamlined, digitally driven concepts.
Bankruptcy provides room to shed weak leases, negotiate with creditors, and seek new ownership. A sale, similar to the Buca di Beppo outcome, is one path. Another is restructuring to focus on stronger markets.
For creditors, landlords, and employees, the process depends on how quickly the company can reorganize and stabilize. For the broader industry, the case adds to a narrative of recalibration. Operators are reassessing size, strategy, and positioning in a market shaped by inflation and shifting consumer expectations.
Sources: