Another Italian restaurant chain has filed for bankruptcy this week and will be shuttering underperforming locations as a result, becoming the latest victim to the challenges facing the U.S. dining sector.
Bravo Brio Restaurants, owner of the upscale Italian chains Bravo! Italian Kitchen and Brio Italian Grille, filed for Chapter 11 protections on Monday. The company said this was the result of weak demand and rising costs, which it described as “insurmountable” pressures on the industry.
Why It Matters
Bravo Brio’s decision follows several other well-known Italian restaurant chains filing for bankruptcy this year. Beyond the individual company challenges and job losses these could entail, this wave serves as yet another indication of financial pressures within the U.S. food industry. These have been seen across upscale, fast-casual and fast food establishments, who are grappling with weakened consumer confidence and a resulting drop in discretionary spending.
What To Know
In the announcement shared with Newsweek, the company cited macroeconomic headwinds, including declining demand and rising competition, as the reasons behind its decision to seek Chapter 11 protections. Bravo Brio previously filed for bankruptcy in 2020, exiting the process months later after being acquired by Earl Enterprises.
It said that many of its current difficulties are industry-wide, and have proven “insurmountable to numerous other legacy, casual dining restaurant brands, many of whom have also turned to bankruptcy as a tool for restructuring.”
“While a difficult decision, the Company concluded that filing was necessary to improve its financial position as it brings on a new investor,” the announcement read.
In its Monday filing, the company said it had between 200 and 999 creditors, as well as assets and liabilities both estimated to be in the $50 million to $100 million range.
A Brio Italian Grille restaurant at City Creek Center in Salt Lake City, Utah, USA, on May 11, 2023.
A Brio Italian Grille restaurant at City Creek Center in Salt Lake City, Utah, USA, on May 11, 2023.
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Bravo Brio is only the latest Italian dining chain to seek bankruptcy protections amid mounting financial difficulties in the restaurant sector. People First Pizza filed for bankruptcy in March, followed by Bertucci’s in April and Red Door Pizza last month.
At least one of the chains, Bertucci’s, has already begun closing restaurants following this move, according to CBS News.
Bravo Brio, in its statement shared with Newsweek, said that the Chapter 11 process would provide an opportunity for the company to “quickly and efficiently reorganize its business for a sustainable and successful future, including closing underperforming locations, restructuring debt, and streamlining and reducing operational expenses.”
What People Are Saying
Bravo Brio Restaurants, in a statement shared with Newsweek, said: “Macroeconomic forces beyond the Company’s control have weighed heavily on its business. In recent years, the casual dining restaurant sector has faced declining consumer demand and increased competition, principally from fast-casual restaurant alternatives. In addition, ongoing inflationary pressure, rising food and labor costs, and a softening in discretionary consumer spending have contributed to underperformance, especially in shopping centers with high vacancies and declining foot traffic.”
A Bertucci’s bankruptcy court filing, as quoted by Fox Business, read: “With losses accumulating, inflationary pressures still high, and industry headwinds gusting, the proverbial final straw fell on [Bertucci’s] this year as the world saw food costs soar, consumer spending slow, and an uncertain global economy falling in (and out) of decline.”
Bertucci’s added that the filing would allow it to “determine the best path forward and formulate an overall reorganizational plan.”
What Happens Next?
Following its filing, Bravo Brio plans to seek new investors and aims to emerge from the Chapter 11 process on a stronger financial footing.
“The bankruptcy process is generally expected to be seamless for Bravo! and Brio’s guests, employees and vendors, and result in minimal disruption to operations,” the company said.
Update 08/21/25, 9:18 a.m. ET: This article was updated with a response from Bravo Brio.
Dining and Cooking