The Tampa, Fla.-based concept experienced a 13% sales decline in 2023 versus 2022, as well as a 12.5%-unit count decline.
Tampa, Fla.-based World of Beer Bar & Kitchen is the latest restaurant chain to file for Chapter 11 bankruptcy protection, with several company affiliates filing Friday in the United States District Court for the Middle District of Florida, as well as World of Beer Holdings, World of Beer Inc., and World of Beer Franchising LLC. The company reported assets of $10 million to $50 million, liabilities of $10 million to $50 million, and 49 or fewer creditors.
The company cited rising interest rates and rent costs, as well as higher operating costs and a slow recovery from the pandemic, according to the Tampa Bay Business Journal. A decline in craft beer consumption may also be contributing to World of Beer’s recent woes, with the segment experiencing dollar and case sales declines in 2022 and 2023.
According to Technomic Ignite data, World of Beer finished 2023 with $53.6 million in sales, a 13% decline year-over-year, while the company experienced a 12.5% unit count decline over the same period, ending the year with 42 locations.
World of Beer made its debut in 2007 and was featured in Nation’s Restaurant News in 2013 as a “growth chain.” By 2015, it had grown to 75 locations in 20 states while also targeting international deals in China, India, and The Philippines. In 2016, the company announced plans to have more than 100 locations open. The company is known for its vast selection of beer – about 500 beers by the can or bottle and 50 on tap at each location – as well as its “tavern fare” menu. Every location has a local beer expert in charge of managing that location's assortment.
With its filing, World of Beer joins a growing list of foodservice concepts seeking bankruptcy in a challenging environment rife with rising costs and increasingly discerning consumers. The biggest filing so far this year has come from Red Lobster, while the list also includes Rubio’s, Tender Greens and Tocaya, Tijuana Flats, Melt Bar & Grilled, Sticky Fingers, Boxer Ramen, Oberweis Dairy, Foxtrot/Dom’s Kitchen, and Pizza Hut franchisee EYM.
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