The Italian restaurant chain Buca di Beppo has declared chapter eleven bankruptcy, citing ongoing financial challenges in the wake of the COVID-19 pandemic. According to ABC15, the company had already been trimming its operations, shuttering locations gradually since the onset of the pandemic in 2020. The chain, known for its family-style dining experience, has seen locations close in various states, including California, Florida, and Utah, with the Chandler, Arizona outlet being one of the recent losses.
In their bankruptcy filing, the Italian eatery pointed to not only the challenges of recovering from pandemic-induced disruptions—like many in the casual dining sector—but also to rising labor and food costs. Buca di Beppo's chief restructuring officer, William Snyder, detailed liabilities between $10 million to $50 million, while assets were estimated to fall below $50,000. Reports from Restaurant Business illustrate that even promotions aimed at driving up traffic and attempts at cutting costs fell short of reversing the company's declining sales and profits. Systemwide sales in the current year are down 5% compared to 2023, marking a 14% plummet since 2021.
The restructuring plan reportedly involves both the consolidation of the remaining 44 locations and potentially opening new one. The company's president has described this move as a "strategic step towards a strong future." Despite the closures, fans of Buca di Beppo can still visit the chain's other locations in Arizona, including Mesa, Scottsdale, and Peoria. The establishment in Chandler expressed gratitude towards their patrons in a message saying, "After being part of this community for 25 years, regrettably, Buca di Beppo in Chandler has closed. We thank our customers for their loyalty — it was our privilege to be the backdrop for countless gatherings and celebrations over the past two decades."
Buca di Beppo's history as a business has been marked by ups and downs, including an SEC investigation in 2005 that led to guilty pleas from executive leadership on charges of embezzlement. After peak growth and a subsequent decline in sales in the years leading to the pandemic, the chain is now on the hunt for a buyer, setting a 75-day deadline from the filing date to sanction a deal.
