Another Beloved Restaurant Chain Has Filed For Bankruptcy
Is this the fall of the mighty half-pound meatball? Yet another family-favorite restaurant is in financial trouble, which means big changes are on the horizon.
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00:00Is this the fall of the mighty half-pound meatball?
00:04Yet another family-favorite restaurant is in financial trouble, which means big changes
00:08are on the horizon.
00:09The beloved Italian chain Bucca di Beppo hasn't been doing well lately.
00:14On August 5th, the restaurant said it had filed for Chapter 11 bankruptcy.
00:18But has trouble been brewing for a while?
00:20And will the restaurant be able to bounce back?
00:22Before we start sounding the death knell for this Italian eatery, there are a few factors
00:26about this move to keep in mind.
00:28The restaurant chain has already closed many of its locations in recent years, so the bankruptcy
00:33news isn't a total shock.
00:35However, the idea behind voluntarily filing for bankruptcy is to focus on the remaining
00:39locations and get a better handle on its operations.
00:43A court filing on the action states the company has faced economic headwinds, just like many
00:47other restaurants in recent years, putting the blame on the pandemic, inflation, dwindling
00:52demand, and rising prices.
00:54These same pressures played a part in Red Lobster's fall earlier this year when it filed
00:58for bankruptcy in the face of mounting debt.
01:01Bucca di Beppo's court filing says the company's sales have gone down by about 5 percent this
01:06year compared with last year, and about 14 percent since 2021.
01:10Still, Bucca di Beppo is optimistic about its future and believes this bankruptcy filing
01:15is a step in the right direction for improving its outlook.
01:18The restaurant got its start in the basement of a Minneapolis apartment building in 1993.
01:23Bella Little Italy, as it was called at the time, was a big hit with diners and just the
01:27beginning of the company's expansion.
01:30And no wonder!
01:31The concept of a la carte dishes meant to be passed around the table family-style brought
01:35people together over massive bowls of fettuccine Alfredo, chicken parm, and half-pound meatballs.
01:41The chain was listed on the stock market in 1999 and eventually had more than 100 locations
01:46around the world.
01:47Since trouble started brewing for Bucca di Beppo, many of its locations have bit the
01:51dust.
01:52As of this year, 18 stores have been shuttered, and a whopping 12 of those were just last
01:56month.
01:57"...popular Italian restaurant closing its doors for good in Sacramento."
02:01That leaves the chain with 44 remaining restaurants in the U.S., along with two listed in the
02:05Philippines.
02:06According to Bucca's website, you can still visit an open Bucca di Beppo in Arizona, California,
02:12Florida, Illinois, Indiana, Kentucky, Minnesota, Missouri, Nevada, New Mexico, Ohio, Tennessee,
02:19Texas, and Washington.
02:21So what's next for the beloved eatery?
02:23Often, the word bankruptcy sparks thoughts of a company's imminent downfall, but Bucca
02:27di Beppo isn't disappearing.
02:29As the company made clear in its court filing, the plan moving forward is to revitalize the
02:33brand by making company-wide improvements.
02:36This includes reducing its debt, offloading bad lease agreements, and improving store
02:40operations overall.
02:41It also plans to keep the remaining locations running business as usual, with as minimal
02:46interruption as possible, according to the filing.
02:49So there's definitely room for Bucca di Beppo to use this Chapter 11 bankruptcy as an opportunity
02:54to turn the whole ship around and get back to being a profitable company.
02:58If you're familiar with the story behind Bucca di Beppo, then you know its concept is pretty
03:02solid.
03:03For diners who want a cozy, family-style meal without making a mess in the kitchen, Bucca
03:07is the place to go.
03:09I'm eating food, lots and lots of food."
03:12So those of us who love its kitschy ambience, Pope-themed rooms, and fist-sized meatballs
03:17will be keeping our fingers crossed for Bucca to bounce back.