---
title: "The Restaurant Industry May See Many More Bankruptcies As Winter Hits"
url: https://burnaze.com/article/0471e7f7-e9d2-479f-9404-bb7bf3568728
source: "1851 Franchise"
original_url: https://1851franchise.com/the-restaurant-industry-may-see-many-more-bankruptcies-as-winter-hits-2714258
category: "Restaurants"
industry: "Restaurants"
topics: ["Regulation & legal"]
published: 2020-11-13T21:16:15.000Z
modified: 2026-11-01T02:25:57.678Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/7352548d7d58be61243bb7a9a0afcdf65465.jpg
---

# The Restaurant Industry May See Many More Bankruptcies As Winter Hits

**TL;DR:** The US restaurant industry may see more bankruptcies as winter and flu season approach, with COVID cases spiking and federal relief funding running dry. Beloved chains like Ruby Tuesday, Sizzler, and California Pizza Kitchen have already shuttered during lockdowns.

*originally published in 1851 Franchise on 2020-11-13. [Read the original](https://1851franchise.com/the-restaurant-industry-may-see-many-more-bankruptcies-as-winter-hits-2714258).*

## Story

As the U.S. braces for winter and flu season, COVID cases have again spiked around the country, and with them rises the spectre of another round of mass restaurant closures.

Beloved national chains including Ruby Tuesday’s, Sizzler, California Pizza Kitchen and Chuck E. Cheese parent CEC Entertainment have already shuttered during the lockdowns. Smaller restaurants have also increasingly disappeared as dining rooms stay dark and federal relief funding runs dry.

QSRMagazine put together an article citing a number of industry reports that paints a grim picture of the restaurant business’ future.

The publication describes a research paper as saying that “growing debt, and the deterioration in operating performance required to service it, has forced heightened levels of investor and debt-holder concern and oversight in an industry which, pre-virus, was enjoying growth and foot traffic at near-historic levels.”

Franchise businesses have typically been more resistant to economic downturns due to their consolidated corporate leadership. QSRMagazine speculates that restaurant mergers and acquisitions may boom as stores around the country struggle to stay open.

The recent merger between Dunkin’ and Inspire Brands shows that no matter the size, players in the restaurant business are rethinking their business structures.

## Entities

- 1851 Franchise (publication)
- Restaurants (sector)
- QSR Magazine (publication)
- Dunkin' Brands (company)
- Inspire Brands (company)
- California Pizza Kitchen (company)
- Ruby Tuesday (company)
- mergers and acquisitions (topic)
- Chuck E. Cheese (company)
- covid impact (topic)
- restaurant closures (topic)
- Sizzler (company)

---
Originally reported by 1851 Franchise (https://1851franchise.com/the-restaurant-industry-may-see-many-more-bankruptcies-as-winter-hits-2714258). Summarized by Burnaze (https://burnaze.com/article/0471e7f7-e9d2-479f-9404-bb7bf3568728).