All sizzle no steak?
That seems to be the case for Sizzler USA, which filed for chapter Monday in California, becoming a member of the growing list of companies which have succumbed to monetary struggles brought on by the pandemic. Eating places specifically have been beneath extreme strain given various state mandates proscribing or limiting indoor eating, and the latest discovering that restaurant eating sharply will increase COVID spread. California Pizza Kitchen additionally lately filed for chapter.
In an announcement, Sizzler mentioned that “The submitting is a direct results of the monetary influence the COVID-19 pandemic has had on the informal eating sector, notably long-term indoor eating closures and landlords’ refusal to supply essential lease abatement.”
Certainly, many retail establishments from the Gap to other restaurant chains have been negotiating with landlords to try to renegotiate or delay lease funds because the pandemic lingers on.
Sizzler was initially based in 1958 by Del and Helen Johnson because the “Sizzler Household Steakhouse” in Culver Metropolis, CA. The concept was to carry a flowery steak dinner to the lots at an reasonably priced worth (which was, again then, $0.99).
However according to Restaurant Business, the chain had been in decline in recent times: “Its unit rely declined 6.9% final yr, in keeping with information from Restaurant Enterprise sister firm Technomic, and the variety of places it operates now’s 15 fewer than it operated on the finish of 2019″ the publication reported.
Nonetheless the Chapter 11 submitting will solely have an effect on the corporate’s 14 company-owned places, not its franchises or worldwide places which make up nearly all of its places.
This isn’t the corporate’s first journey via Chapter 11. The Wall Road Journal reported that in 1996 the chain previously filed for bankruptcy, closing 136 eating places because it exited markets within the East equivalent to Baltimore, Philadelphia and Florida.
On the time the Journal wrote that “Lots of the shops have slipped because the steak-and-salad buffets launched about 5 years in the past have fallen out of favor. The chain will recast its remaining eating places in a brand new ‘American Grill’ format that can supply extra of a sit-down eating expertise.”
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