A SALAD restaurant chain has sparked mass fears about closure as its parent company has filed for bankruptcy.
Tender Greens is a Southern California-based chain and rival to fellow healthy fast food companies Sweetgreen and Cava.
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The chain has 24 locations in the south of the state and the Bay Area, according to data ScratchHero.
Tender Greens and its parent company filed for Chapter 11 bankruptcy on July 17 and 18.
The chain’s owner, One Table Restaurant Brands, also owned the Mexican restaurant Tocaya.
A boss at the parent company said customer flow was impacted by Covid and never recovered, according to Diving in a restaurant.
Most of Tender Greens’ locations were in downtown Los Angeles, which relied heavily on office workers.
One Table Restaurant Brands CEO Harald Herrmann blamed the rise in the use of delivery apps and the commission charged for these orders.
The CEO said that around 30-40% of orders are placed through these apps.
“A commission rate of between 15% and 18% depending on the supplier, along with related packaging costs of 4%, make these sales less profitable,” he said in the report. bankruptcy filing.
“It is not possible to pass on all this cost to the consumer, as it would have a negative impact on restaurant demand”.
He also cited California’s $20 per hour minimum wage.
The legislation, passed April 1, applies to fast-food restaurants with more than 60 locations.
Although Tender Greens has fewer branches, the CEO said his company had to increase salaries to compete with other companies in terms of staffing.
Herrmann also blamed problems arising from rising inflation.
The chain has not yet confirmed any closure, but hopes it can be purchased in time.
Restaurant Closings in 2024
BOSSes of major restaurant chains have announced a series of restaurant closures. The US Sun has compiled a list of those affected by the network.
- Biscuit Barrel: Stores in Medford, Oregon, Columbia, South Carolina and Sacramento, California, closed.
- Mod Pizza: Bosses dramatically closed 27 stores in April, including some in the state of California.
- Frisch’s Big Boy: Restaurant bosses confirmed the closure of a restaurant in Covington, Kentucky, in April.
- Outback Steakhouse: The chain will close 41 “underperforming” locations this year.
- Two dolars: Four restaurants in Ohio closed in April.
- Pepper: A restaurant in Port Arthur, Texas, has closed permanently, as has another in Irvine, California.
- Friendly: Bosses have confirmed that an establishment in Ronkonkoma, Long Island, will close.
- Pizza Hut: A restaurant in Glen Falls, New York, closed in late March, followed by four in Ohio in June and 15 in Indiana.
- Danny: Two restaurants in Boise and Nampa, Idaho, have closed.
- Carl’s Jr.: The first location in Boise, Idaho, has closed.
- In and out: A location in Oakland closed earlier this year due to crime in the area.
- cheesecake factory: The chain is expected to close a location in Memphis, Tennessee, in July.
- Applebee’s: Announced the closure of between 25 and 35 locations this year.
- Taco John’s: He closed a restaurant in Minnesota and put the building up for sale in May.
- Rubio’s Coastal Grill: Announced the closure of 48 locations in California after filing for bankruptcy.
- Burger King: It closed a California location in June after 30 years.
INCREASE IN WAGES
California’s new fast-food minimum wage has also forced other chains to make changes, The US Sun reported.
Some brands have increased menu prices by up to 8% because of this.
Chains like Chipotle and Starbucks have passed these costs on to consumers.
MONEY PROBLEMS
One Table Restaurant Brands wasn’t the only food company to face bankruptcy.
Tex-Mex chain Tijuana Flats confirmed that 11 spots would be closed across Florida due to financial pressures.
This included locations in key areas like Fort Lauderdale, Tampa and West Palm Beach.
They cited a change to their menu in 2021 as the problem.
This story originally appeared on The-sun.com read the full story
