National restaurant chains facing bankruptcy amid coronavirus pandemic
Closed temporarily - unsure of what the future holds. Casual dining chains like Denny’s known for its all-day breakfast are struggling amid the coronavirus pandemic. Many of these restaurants forced to shut their doors in March may never reopen.
Chains like Outback Steakhouse and The Cheesecake Factory have just been added to a list of national restaurants facing the highest likelihood of not paying back their debt. IHOP and Applebee’s owned by Dine Brands Global - are just other examples of chains hurt by competition, rising food costs, and now COVID.
But hospitality marketing consultant David “Rev“ Ciancio says a lot has been learned over the past few months.
According to a new report from S&P Global Market Intelligence, Dave & Buster’s has a 16.1% likelihood of defaulting and California Pizza Kitchen has already filed for Chapter 11 bankruptcy with plans to close some of its locations.
“A lot of these chains and these big brands give in a dine-in experience,” he said. “They are there for the dining experience for a customer to sit for a Mother’s Day meal, a Sunday night dinner or an after work drinks hang and they’re there just for that experience and just the ability for that experience is kind of gone.”
Another hurdle restaurants face is weather especially as it gets colder - will people feel comfortable eating inside and will it be allowed if there’s another spike in cases.
Not all chains are doing poorly. According to the report, companies least likely to default included fast-casual chains like Chipotle and McDonald’s.