As the newest victim of the economy, El Torito and the more commonly known brand Chevy’s Fresh Mex has filed for bankruptcy as of Tuesday, October 4th. What is going to happen to those locations? It is a little early to speculate but if history has anything to say about it we will see a closure of most locations, leaving only the most profitable open. One article states that there are 178 locations, 84% of those are in California.
You might remember earlier this year when Marie Callender’s went bankrupt – without warning all of the Northern California locations closed. Prior to that, Black Angus struggled and closed a portion of their portfolio to save the brand.
The unstable economy has made the consumer more conscious of their spending habits. This could be one major reason for the volatility of restaurants. One report claims that 9,450 restaurants closed last year alone; of those, 8,650 were independent restaurants rather than chains. Read the full article HERE