CHICAGO – Roti, a Mediterranean chain with restaurants in multiple large metro areas, has filed for Chapter 11 bankruptcy protection, joining several other dining chains.
The Chicago-based chain, a fast-casual brand that serves a variety of bowls, salads and pita wraps, operates 19 restaurants in Chicago, Minneapolis and Washington metropolitan areas. CEO Justin Seamonds attributed the decision to a variety of financial issues.
“After careful consideration, filing for bankruptcy protection was the best way to address our challenges — including financial performance, higher costs, mixed location performance and tough market conditions,” Seamonds said, Nation’s Restaurant News reported.
The company said it plans to use Chapter 11 to seek new investors or purchasers “on an accelerated time frame while reorganizing its finances and ensuring that Roti locations … continue to operate.”
Roti submitted its petition to the U.S. Bankruptcy Court for the Northern District of Illinois.
Its move to do so comes after companies like Tijuana Flats, Red Lobster, Rubio’s Coastal Grill and Buca di Beppo have entered Chapter 11 bankruptcy proceedings of their own in recent months, Fox Business noted.
KPMG researchers conducted a survey in June and found 41% of respondents among almost 1,100 adult consumers in the United States planned to cut restaurant spending during the summer. The survey estimated the average monthly amount that consumers plan to trim their summer restaurant was about 9%.
Meanwhile, only 21% said they planned to increase summer restaurant spending, according to the survey.
As inflation continues to pressure consumers, they expect to spend less this summer on personal care products, considered an essential, and restaurants, travel and entertainment, the survey said.