Under pressureUnder pressure

Sarah E. Lockyer

A slew of Chapter 11 bankruptcy filings during the past few months — and speculation on more to come — is making the second half of 2011 look very similar to the gloomy days of 2008, when the market and economy crashed and numerous restaurant chains folded under debt, increased operating costs and slowed sales. 


From this summer onward, the restaurant industry has seen Chapter 11 filings from Sbarro, Souper Salad and Grandy’s, Perkins and Marie Callender’s, Giordano’s, and Star Buffet. At press time, reports placed Friendly Ice Cream Corp., parent of the 500-unit Friendly’s chain, as the next in line. In September, Pat & Oscar’s filed for Chapter 7 liquidation, closing its corporate-owned restaurants, while franchisees fi...