Salad chain sparks fear of closures after it files for bankruptcy

Salad restaurants for illustration Sweetgreen, Dig and Cava are soaring successful fame successful nan US - but 1 is struggling.

The proprietor of Tender Greens and its sister marque Tocaya Modern Mexican person revenge for Chapter 11 bankruptcy.

Customer numbers ne'er recovered aft dipping importantly during nan pandemic, bosses astatine One Table Restaurant Brands said.

The institution operates 24 Tender Greens and 15 Tocaya units successful California and Arizona, and they were particularly reliant connected customers successful downtown Los Angeles. 

That area of nan metropolis has ne'er recovered from Covid, pinch agency workers and residents alike not returning.

An expanding reliance connected transportation apps caused problems too. Sales astatine nan 2 brands shifted towards carryout during nan pandemic - and now makes up astir 30 to 40 percent of orders.

But orders via Postmates and Uber Eats transportation large commissions - that eat into profits

CEO Harald Herrmann wrote successful nan filing: 'A committee complaint of betwixt 15 to 18 percent depending upon nan provider, coupled pinch related packaging costs of 4 percent, make these income little profitable.

'Passing this full costs on to nan user is not imaginable arsenic it would person a antagonistic effect connected request for nan Restaurants.'

The institution besides blamed California's $20-an-hour minimum wage. While nan institution is mini capable - having nether 60 outlets - to debar being forced to salary it, they person had to raise wages to compete pinch workers pinch bigger chains.

The institution is hoping to get $3 cardinal successful financing from Breakwater Management to proceed operating while they effort to find a buyer.

'We ran each imaginable action to nan crushed successful bid to debar bankruptcy, but ultimately, restructuring our indebtedness is nan champion determination for our squad members, weighted vendor partners and loyal guests,' Herrmann said successful a statement. 

'We expect to look from this restructuring process stronger and amended positioned to prosper successful our hyper-competitive industry.'

Restaurants that service caller but quickly prepared salads for illustration Tender Greens person soared successful fame successful caller years. Sweetgreen, for example, has 205 restaurants, and Cava has almost 280.

Across America, Restaurants person progressively been struggling this year. Faced pinch higher costs, they person put up paper prices - but that has led to a autumn successful customers. 

Bigger chains for illustration Applebee's, TGI Fridays and Boston Market person have each precocious shuttered restaurants, arsenic person smaller chains for illustration BurgerFi. 

Red Lobster revenge for bankruptcy successful May and besides shuttered almost 100 restaurants.  

Chains person been worst deed successful California wherever nan minimum costs for accelerated nutrient restaurants jumped to $20-an-hour from April 1. 

In early June, Mexican concatenation Rubio's unopen 48 locations in nan authorities and besides revenge for bankruptcy. 

Across America, mom-and-pop operations person besides been shutting.

Earlier this month, for example, Fargo's Pit BBQ successful Texas closed aft much than 2 decades of serving brisket, ribs and other barbecue classics.