Another big name in the restaurant business has filed for Chapter 11 bankruptcy. The only difference between this filing and the several other restaurant chains filing late last year, is that Buffets Inc. exited a previous bankruptcy filing back in 2008. Despite the negative connotation this may bring to light, the fact is that many of our nation’s industries are fighting to stay afloat in such tough economic times.
A Dying Concept
Operator of the restaurant chain Old Country Buffet, Buffets Inc., just hasn’t been able to stay out of the red financially for quite some time. The “all-you-can-eat” concept is one that is slowly dying in American culture. While this comes as good news for nutritionists and diet enthusiasts, the fact remains that many of our nation’s restaurant chains will have to change their ways if they are to remain in business in the future.
Buffets Inc. has two things working against it in terms of financial profitability (1) their concept is outdated and unappealing to the market share and (2) they can’t compete with other “casual dining” restaurant chains, which now offer low fat/low calorie options to patrons. While Buffets Inc. looks to change operations and menu options, they have announced the closing of 16 percent of their locations. Company executives are confident that they can reorganize their debts, repay creditors and develop a winning strategy for regaining profitability in a battered market.