The restaurant industry’s struggles continue in 2024, with California-based Tender Greens and its parent company, One Table Restaurant Brands, filing for Chapter 11 bankruptcy protection.
This move adds to a growing list of restaurant bankruptcies this year, pointing to deeper issues within the sector.
Tender Greens, which operates alongside its sister brand Tocaya, built its reputation on offering healthier fast-food options.
The chain caught the eye of prominent restaurateur Danny Meyer, who invested in 2015.
Meyer’s enthusiasm was clear at the time when he said, “Every now and then, I’ll visit a restaurant and love the idea—the food, the people, the culture—so much that I wish I’d thought of it myself. That’s exactly what happened with Tender Greens.”
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Despite this early promise, One Table Restaurant Brands now faces significant financial trouble.
Bankruptcy documents reveal liabilities between $10 million and $50 million, with assets under $50,000.
Tender Greens and parent company One Table Restaurant Brands file for bankruptcy. Tender Greens and its parent company (which also owns Tocaya) filed for Chapter 11 protection https://t.co/Pa5dn3edah pic.twitter.com/7SDxJ0WmOI
— Restaurant News (@NRNonline) July 18, 2024
Tender Greens isn’t alone in its struggles.
Several well-known chains have filed for bankruptcy in 2024, including Red Lobster, Rubio’s, and Tijuana Flats. Smaller regional brands have also fallen victim to the current economic climate.
The reasons behind these failures are complex, but California’s business environment plays a key role.
The state’s strict regulations, mandates and minimum wage laws have created a challenging business environment for restaurants.
Increased labor costs, onerous regulations, and environmental requirements have added significant expenses for operators.
On top of this, the broader economic policies of the Biden administration have contributed to rising costs across the board.
For restaurants already working with thin profit margins, these additional expenses can quickly become overwhelming.
The Tender Greens story isn’t just about one chain’s failure.
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It shows the urgent need for a more business-friendly environment that allows restaurants and other small businesses to succeed.
