A much-loved Italian restaurant chain has filed for bankruptcy, the fourth so far this year.
Bravo Brio Restaurants – which owns the chains Bravo!, Italian Kitchen and Brio Italian Grille – filed for Chapter 11 bankruptcy on Monday.
The company blamed the ‘insurmountable’ pressures on the industry, including rising costs, consumers wanting to dine out less and increased competition from fast casual restaurants.
Bravo, which listed up to $100 million in debt, said it will be closing underperforming locations as it moves through the bankruptcy process.
That is in addition to the handful of locations it recently closed in Virginia, Ohio and Missouri, Restaurant Dive reported.
Bravo, which currently operates around 50 restaurants across its brands, previously filed for bankruptcy in 2020, but emerged months later after being bought out by Earl Enterprises.
However, Bravo’s latest difficulties are hitting the entire industry, dragging other establishments down too, according to the company’s statement.
It is the latest tragedy to hit the Italian food scene after People First Pizza filed for bankruptcy in March, followed by Bertucci’s in April and Red Door Pizza in July.
Bravo Brio Restaurants – which owns the Brio Italian Grille chain – has filed for bankruptcy for the second time
The macroeconomic issues are ‘insurmountable to numerous other legacy, casual dining restaurant brands, many of whom have also turned to bankruptcy as a tool for restructuring,’ the company said in a statement.
‘In recent years, the casual dining restaurant sector has faced declining consumer demand and increased competition, principally from fast-casual restaurant alternatives..
‘In addition, ongoing inflationary pressure, rising food and labor costs, and a softening in discretionary consumer spending have contributed to underperformance, especially in shopping centers with high vacancies and declining foot traffic.’
Bravo Brio said it hopes to ‘quickly and efficiently reorganize its business for a sustainable and successful future,’ which includes closing underperforming locations, restructuring debt, and streamlining and reducing operational expenses.
Bravo will be hoping that new investors see an opportunity which will help keep as many of its locations and staff in place as possible.
Massachusetts-based Bertucci’s, known for its brick oven pizzas and family-friendly atmosphere, has now closed nearly a third of its locations after filing its third bankruptcy in five years in April.
The chain first entered bankruptcy in 2018, slashing its footprint in half from 56 restaurants down to 28.
A second filing came in 2022, after pandemic supply chain disruptions squeezed operations.
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Bravo, which listed up to $100 million in debt, said it will be closing underperforming locations
Craig Miller, CEO of Bravo Brio Restaurants, which owns the chains Bravo!, Italian Kitchen and Brio Italian Grille
People First Pizza filed for bankruptcy in March, followed by Bertucci’s in April and Red Door Pizza in July (stock image)
Moro’s Dining, known for its white table clothes and smartly dressed servers, closed in June
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The third filing came in April, leading to the latest raft of closures, including in Braintree, Mansfield, North Andover, and Norwood.
As well as chains, independent Italian restaurants are also suffering in the current economic climate.
Moro’s Dining, a beloved Italian institution in Allen Park, Michigan, closed in June.
Firenze’s Restaurant & Pizzeria in Warren, Michigan, also closed later that month.
Increased overheads, plus the disruption of the pandemic, led to a raft of high profile closures across the restaurant industry last year.
TGI Fridays fell into bankruptcy, closing around 130 locations.
Several other national chains, including Red Lobster, World of Beer Bar & Kitchen, and BurgerFi also filed for Chapter 11 bankruptcy in 2024.
Red Lobster also filed for bankruptcy in May last year – days after closing more than 100 restaurants.