84-year-old dining chain franchisee files Chapter 7 bankruptcy
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Key PointsK&W Cafeterias closed all nine locations on December 1, 2025, after 88 years.Bravo Brio and Abuelo's Mexican Restaurant filed for Chapter 11 bankruptcy in 2025.Fast-casual chain franchisee files for Chapter 7 liquidation.Restaurant chains have faced hundreds of closings in 2025, with some operators forced to file Chapter 11 or Chapter 7 bankruptcy protection to liquidate assets. In some cases, restaurant chains shut down all locations without filing for bankruptcy. That was the case with 88-year-old casual dining chain K&W Cafeterias, which operated eight locations in North Carolina and one in Virginia. The restaurant chain, founded in 1937, had grown to 35 locations before it started downsizing after the Covid-19 pandemic in 2020. K&W Cafeterias closes all 9 locations K&W Cafeterias, which was a popular Southern comfort-food, cafeteria-style restaurant chain for decades, closed all nine of its locations on Dec. 1, 2025, with a message on its Facebook page, which has since been disabled. The company’s website has been disabled, as well. K&W Cafeterias milestones: K&W Cafeterias founded 1937. Operates up to 35 locations before 2020. Closes remaining 9 restaurants on Dec. 1, 2025. The 88-year-old restaurant chain’s website had included a farewell message that it posted on its locations’ front doors. “We are sorry to announce that after proudly serving this and many other communities for years, K&W Holdings Group LLC will be closed permanently. All existing locations closed effective 12/1/2025. We thank you for your support throughout our years in business. K&W Holdings Management.” Restaurant chains file for bankruptcy protection Several other casual restaurant chains have filed for bankruptcy and shuttered locations this year. Italian restaurant chain operator Bravo Brio Restaurants LLC, the parent company of popular upscale Italian restaurant chains Bravo Italian Kitchen and Brio Italian Grille, filed for Chapter 11 bankruptcy for the second time in five years on Aug. 18, 2025, to reorganize its businesses and restructure debt. Popular Mexican chain, Abuelo’s Mexican Restaurant, filed for Chapter 11 bankruptcy in September 2025, blaming rising costs, labor issues, and declining sales. The company had about 40 locations at its peak, but had diminished to 16 restaurants when it filed for bankruptcy. Dickey’s Barbecue Pit dining chain has closed dozens of restaurants over the last two years. — Source: Shutterstock Dickey’s franchisee liquidates in Chapter 7 bankruptcy And now a franchisee of the 84-year-old fast-casual restaurant chain Dickey’s Barbecue Pit has filed for Chapter 7 bankruptcy liquidation to close down a California location. Elk Grove, Calif. franchisees Miguel Zarate Ortiz and Maria Zomeno Sevilla filed their petition in the U.S. Bankruptcy Court for the Eastern District of California on Dec. 8 listing only $17,987 in assets and about $1.04 million in liabilities, the Sacramento Business Journal reported. Most of the liabilities are debts owed to the Dallas-based parent company.
The Elk Grove franchisee did not state a reason for filing for Chapter 7 bankruptcy in its petition. The restaurant’s listing on the Dickey’s locations page reveals that the store is closed, and the phone number listed is not operational. Dickeys closed 85 net locations in 2024 Dickey’s restaurant chain closed a net of 85 U.S. locations in its fiscal year 2024, which ended on May 31, 2024, Restaurant Business Magazine reported. The company closed 97 locations in the fiscal year, but also opened 12 locations. Dickey’s, however, reported that it opened 46 new locations from January 2025 through August 2025 and was on pace to open 60 new locations by the end of the year, the company said in an October 2025 statement. More bankruptcy: 64-year-old furniture store franchisee files Chapter 11 bankruptcy Golf legend’s iconic brand files for Chapter 11 bankruptcy Major health services provider files for Chapter 11 bankruptcy The company, however, did not reveal how many locations have closed in 2025. Dickey’s, which was established in 1941, claims that it has 387 corporate-owned and franchised locations in the U.S. and several countries, according to Dickey’s website. Dickey’s Barbecue Pit location openings and closings Dickey’s opens 12 stores and closes 97 for 85 net location closings fiscal year ending May 31, 2024. Dickey’s opens 46 new stores January 2025 through August 2025. Dickeys has a total of 387 locations worldwide in October 2025. View post: Sports league’s financing collapses, files Chapter 11 bankruptcyLatest Business & Market NewsSports league’s financing collapses, files Chapter 11 bankruptcyProfessional sports league, led by an Olympic medal winner, files for bankruptcy protection.Kirk O’Neil 0 About the authorsKirk O’NeilKirk O'Neil has over 30 years of experience writing and editing articles for various financial news publications, including the Crittenden Report of Commercial Real Estate Finance, TheDeal, Bisnow Commercial Real Estate News, and TheStreet. Kirk specializes in corporate bankruptcy and restructuring and Las Vegas Strip business and entertainment news. He earned his bachelor's degree in Government-Journalism from Sacramento State University. Currently, Kirk writes and edits articles for TheStreet, and he has also worked as West Coast Editor for Bisnow, and as a reporter on the corporate bankruptcy and restructuring team at TheDeal, owned by Euromoney, which had purchased the publication from TheStreet. Send Kirk an email here.Daniel KlineDaniel Kline serves as co-editor-in-chief of TheStreet. He has more than 30 years of experience covering retail, restaurants, travel, and technology. He's the creator of Come Cruise With Me, and a noted expert on cruise travel. He has been passionate about the changing state of retail and loves to show why companies succeed or fail. Start the Conversation