TL;DR
Romano's Macaroni Grill filed for Chapter 11 bankruptcy protection due to slower profits and increased labor and commodity costs. The company is facing lawsuits as it closes locations across the country.
Romano’s Macaroni Grill is facing lawsuits as it closes locations across the country. According to a recent article in Nation's Restaurant News, the company has filed for Chapter 11 bankruptcy protection. This decision follows the brand's actions to close 37 locations.
Macaroni Grill has been experiencing slower profits, which have made it difficult to keep up with an increase in labor and commodity costs. CEO Nishant Machado says that another challenge facing the company is, "a trend among younger customers to spend their disposable income at non-chain ‘experience-driven’ restaurants."
The brand is currently facing lawsuits from landlords who are "seeking to recover damages far in excess of anything they would be entitled to under bankruptcy.”
In this story
This story was originally published in 1851 Franchise on October 19, 2017. Burnaze summarizes and links to the original reporting.
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