Yet another chain of restaurants has found itself in the dumps - and this is a big one. Although not all Outback Steakhouse restaurants are closing, a major franchisee of the chain has now filed for bankruptcy.
And, per the New York Post, the Cerca Trova Restaurant Group Holdings has cited "reduced foot traffic, slow pandemic recovery, rising food prices and unexpected labor costs" as reasons for filing their Chapter 11 bankruptcy..
The franchisee owns around 60 restaurants across the West Coast - meaning Californian Bloomin' Onion lovers might need to search for an alternative.
David Goronkin, the Chief Executive Officer for Cerca Trova, was candid about the reasons behind the shuttering. "By 2026, the pressures on the business had converged. Guest traffic and earnings continued to decline, while food, labor, and other production costs continued to rise."
This also comes amid a major lawsuit settlement against Cerca Trova. A California court recently settled a $1.6 million wage-and-hour class action against the company after employees alleged "failing to pay overtime and minimum wages".
The company proposed selling all of their Outback Steakhouse restaurants to Outback themselves - but it isn't clear whether this is something that will go through as of yet.
For the restaurant's sake, they've explained that Cerca Trova going under "is an isolated situation involving the franchisee." They were quick to emphasise that it "does not affect Bloomin' Brands' corporate operations, financing, or liquidity."
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This Comes After Another Beloved Restaurant Filed for Bankruptcy
Of course, given the rising costs of everything, Cerca Trova wasn't the first, and won't be the last, to file for bankruptcy.
We reported on another recent shuttering when it happened. A beloved salad restaurant chain, Salad and Go, shuttered its doors back in August. The restaurant filed for Chapter 11 bankruptcy at the start of the month.
The company explained its reasons in a statement - and they're pretty similar to Cerca Trova.
"While Salad and Go earned the support and loyalty of a deeply passionate community, the business was ultimately unable to overcome sustained pressure on consumer demand, past strategic growth challenges, and rising costs."
It's a troubling trend, and we hope that things can stabilize soon!
