The restaurant industry is suffering yet another brutal shakeout.
Two more major restaurant franchise operators have filed for Chapter 11 bankruptcy protection, adding to a growing list of companies struggling to survive mounting debt, rising operating costs, and financially squeezed consumers.
EYM Diner, a 30-unit Denny's franchise operator, filed for bankruptcy on November 4, reporting between $10 million and $50 million in liabilities, according to Nation's Restaurant News. In addition to the Denny's franchise operator, Schlotzsky's franchise operator has also sought Chapter 11 protection, according to TheStreet.
The operator, JPrieto Hospitality, previously ran 10 locations of the sandwich chain but has since seen its footprint shrink. The Texas-based company approximately $532,000 in assets against $350,000 in liabilities. Its annual revenue fell from $8.26 million in 2024 to $8.19 million in 2025, while revenue through November 5 totaled just $4.11 million, TheStreet reports.
However, the carnage extends far beyond breakfast diners and sandwich shops.
Wendy's franchisee Meritage Hospitality Group READ MORE AT SOURCE »
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