What has caused the restaurant chain of Bennigans to seek bankruptcy?
Changing Tastes Bennigan’s restaurants fall victim to American belt-tightening. By Karen Springen | Newsweek Web Exclusive Jul 31, 2008 | Updated: 9:03 p.m. ET Jul 31, 2008 If you’ve got a craving for a Bennigan’s Monte Cristo—the restaurant chain’s battered and fried ham, turkey and cheese sandwich, which is dusted with powdered sugar and served with raspberry dipping sauce—then you might be out of luck. This week, the parent company of the 32-year-old faux Irish bar and grill filed for Chapter 7 bankruptcy protection. While the firm’s 138 franchisee-owned outlets will remain open, 150 of the company-owned eateries will close. Bennigan’s is a casualty of the weak economy and, like many of its patrons, had trouble dealing with higher fuel, food and labor costs. But operating costs were not the only issues. Industry experts also blame an outdated menu, poor food quality, slow service, poor site selection and facilities in need of upgrades. “It’s never just one thing, is it?” says Ron Go
Restaurant chains Bennigan’s and Steak & Ale have filed for Chapter 7 bankruptcy protection and stores owned by its parent company will shut their doors. The companies owned by privately held Metromedia Restaurant Group of Plano, Texas, filed for bankruptcy protection Tuesday in the Eastern District of Texas, less than two months after Metromedia said it was not preparing to do so. Metromedia Restaurant Group is a part of Metromedia Co., owned by billionaire John Kluge, that has interests in entertainment, radio stations and medical equipment. In a Chapter 7 filing, a company seeks to liquidate its assets and shut down. Locations owned by franchisees were not part of the bankruptcy filing and will not be shut down, said Larry Briski, president of the Bennigan’s Franchise Operator Association. “They will be open today, tomorrow and months and years to come,” Briski said of the franchise locations. The 138 domestic and international franchisee-owned restaurants are “open and fully operat
