Romano's Macaroni Grill, an upscale Italian restaurant chain that once had locations sprouting up all over the country, has announced it will enter a Chapter 11 business bankruptcy in order to restructure its debts so that it might be able to continue to operate.
Like other restaurant chains that have either gone through rocky financial times or have had to close their doors over the last two decades or so, the management of Macaroni Grill says that the market conditions simply no longer favor chain restaurants that offer upscale, sit-down dining.
The millennials do not prefer chain restaurants when they go out, and many others simply prefer cheaper options that have come onto the market in recent years. In fact, another major chain, Ruby Tuesday, recently was sold and became a privately-held company following some financial difficulties of its own.
According to the owner of Macaroni Grill, the restaurant's locations across the country, including a handful in Tennessee, are expected to stay open for business. However, the chain has of late been shutting down its locations where business was just not profitable. Up to 4,600 employees can be affected by this bankruptcy.
It is true that in many cases, businesses run into hard times simply because market conditions change. When this happens, it may be hard for the business to stay afloat, whether it is a mom-and-pop eatery in southeastern Tennessee or a major national player. The restaurant business is tough, but fortunately, bankruptcy protection is available to help these businesses stay afloat.
Source: NBC 4i.com, "Romano's Macaroni Grill files for Chapter 11 bankruptcy protection," Oct. 19, 2017.