801 Restaurant Group filed for Chapter 11 bankruptcy protection on 10 April in US Bankruptcy Court in Kansas City. The company listed assets of nearly $15 million and liabilities of $18.7 million.
Why it matters
The filing highlights the squeeze facing premium restaurants as beef prices climb and dining costs rise. For consumers already cutting back amid record-low sentiment and fuel-price inflation, upscale dining is one of the first discretionary expenses to go.
What happened
801 Restaurant Group owns the 801 Chophouse and 801 Fish brands, operating eight restaurants across Iowa, Colorado, Kansas, Minnesota, Missouri, and Nebraska. The first 801 Chophouse opened in Des Moines in 1993.
According to court filings, the company has struggled with rising food costs, particularly beef. US cattle supply has been shrinking for several years due to drought and herd liquidation, pushing wholesale beef prices to multi-year highs.
Individual restaurants not included
The individual companies that own each restaurant location are not part of the bankruptcy filing and continue to operate. Two locations had already closed before the filing. According to Restaurant Business Online, Chapter 11 is not expected to affect the remaining six restaurants.
Broader trend
The filing follows a wave of restaurant bankruptcies and closures across the US. Rising input costs, higher wages, and cautious consumer spending have pressured margins industry-wide. Chapter 11 allows the parent company to restructure its debts while keeping operations running.