Ruby Wednesday is filing for bankruptcy protection, the latest informal restaurant chain to suffer from coronavirus-related closures and changing customer habits.
The particular Maryville, Tennessee-based company, that was founded in 1972, mentioned on Wednesday that the restaurants will remain open through the bankruptcy process. Ruby Wednesday has 250 company-owned plus franchised restaurants in the United States, North america, and nine other nations, including Hong Kong, Chile, plus Kuwait.
“This announcement does not mean ‘Goodbye, Dark red Tuesday, ’” CEO Shawn Lederman said in a declaration. “Today’s actions will allow all of us an opportunity to reposition the company just for long-term stability as we get over the unprecedented impact associated with COVID-19 . ”
Ruby Tuesday is known because of its salad bar, which could become a difficult sell in a post-pandemic world. But it’s furthermore dealing with longer term changes in the marketplace that have hurt other informal chains. Even before the virus strike, sit-down restaurants were battling as more consumers opted for shipping and carryout. Restaurants, nevertheless clawing their way back from your recession a decade ago, had small cash to update their own aging stores.
Los Angeles-based California French fries Kitchen filed for personal bankruptcy protection in July, as the parent company of the Get rid of E. Cheese pizza plus entertainment chain filed with regard to bankruptcy in June. Steakhouse chain Sizzler, also located in California, declared bankruptcy final month.
NPD Group, a data plus consulting firm, said Oughout. S. visits to full-service restaurants plunged 47 % in the April–June period, in the height of the mandated dining-room closures. Visits have ticked upward since then, but had been still down 25 percent within August. Without counter services or drive-thru windows, sit-own chains like Ruby Wednesday simply haven’t been able to generate up the lost volume off their dining rooms.
Ruby Tuesday didn’t instantly respond when asked with the Associated Press how many from the restaurants are currently operating and exactly how many remain closed because of the pandemic.
By Dee-Ann Durbin