Restaurant Bankruptcies Surge in 2024, Nearly Doubling Last Year’s Numbers

As 2024 unfolds, the restaurant industry is facing a significant financial storm, as many popular chains and well respected businesses are finding it difficult to stay afloat in today’s economy as opposed to the years before. Business experts and industry leaders, revealed that 17 Chapter 11 filings have occurred in the sector so far this year, a sharp rise from the nine reported by this time last year.

Carson, an expert in navigating the complexities of corporate restructuring, anticipates this upward trend to persist. Though the numbers remain lower than the pandemic peak, when nearly three dozen major franchises went under within a year, the current surge is driven by distinct, evolving challenges.

Despite the alarming rise in Chapter 11 filings, Carson emphasized that these filings don’t necessarily signal the end for these companies. Instead, they reflect the industry’s ongoing efforts to adapt to current market conditions by restructuring their operations and finances.

The year 2024 is shaping up to be a critical period for the restaurant industry, as stakeholders grapple with new dynamics and attempt to stabilize their businesses amid a volatile economic landscape. As more companies turn to Chapter 11, the industry’s resilience and adaptability will be tested, potentially reshaping the future of dining in America.