Craft beer themed restaurants, such as BJ’s and Yard House, have found success in pairing their libations with a variety of food items.
BJ’s (BJRI) got it’s start in 1978 as a Chicago deep-dish pizza joint in Southern California, before focusing on craft beer. Yard House also got its start in Southern California in 1996 and boasts over 100 beers on tap.
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BJ’s has about 216 locations nationwide, and Yard House has about 88 locations in the U.S.
These national chains are a couple of the successful U.S. craft beer chains. BJ’s on July 25 reported that it beat analysts’ estimates on quarterly earnings per share. Yard House is owned by Darden Restaurants (DRI) .
Smaller craft beer restaurant chains have struggled since the Covid pandemic, suffering from rising interest rates, costs, and inflation, as well as a reduction of customers who also have been battling economic challenges.
Small regional restaurant and craft beer bar Melt Bar & Grilled on June 14 filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Northern District of Ohio suffering financial difficulties from increased food and labor costs caused by inflation and facing lawsuits filed by landlords.
The Lakewood, Ohio, restaurant chain, founded in 2006 by Matt Fish, specializes in gourmet grilled cheese sandwiches, craft beers and signature drinks. The restaurant also features a vegan menu with vegan grilled cheese, vegan mac and cheese, tofu wings, and other items.
Melt currently lists six locations on its website, consisting of restaurants in Akron, Columbus, Lakewood and Mentor, Ohio. It also has satellite locations at the Cleveland Guardians’ Progressive Field and at Case Western University in Cleveland.
The establishment grew to 14 locations by 2017, but faced financial difficulties following the Covid-19 pandemic in 2020 and had to downsize.
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Other craft beer restaurants that have filed Chapter 11 this year include Zydeco Brew Works in Ybor City, Fla., which in January filed Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Florida and closed its main brewery and restaurant location on 7th Avenue in Tampa, Fla.
Popular craft brewery Griffin Claw Brewing Co., which operates brewery, restaurants and taprooms in Birmingham and Rochester Hills, Mich., on July 26 filed for Chapter 11 bankruptcy protection to avoid litigation between its partners in an ownership dispute, the Detroit News reported.
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Craft beer restaurants are struggling to avoid filing for Chapter 11 bankruptcy.
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World of Beer files Chapter 11 bankruptcy
And now, a competitor of huge craft beer restaurant chains Yard House and BJ’s, World of Beer, on Aug. 2 filed for Chapter 11 bankruptcy to reorganize, cancel leases, and extinguish debt.
World of Beer’s parent WOB Holdings and 11 affiliates filed their petition in the U.S. Bankruptcy Court for the Middle District of Florida, blaming a negative impact of rising interest rates and lease obligations on cash flows along with inflation, increased operating costs and a slow return to pre-pandemic dining habits, the Tampa Bay Business Journal reported.
The debtor listed $10 million to $50 million in assets and liabilities, including claims of over $25.6 million owed to Synovus Bank.
The Tampa, Fla.-based craft beer bar and restaurant opened for business in 2007 and had grown to as many as 75 locations in 20 states by March 2016, when it opened a franchise in Shanghai, China, according to a statement at the time.
The company has closed more than half of its locations since then, with 34 currently listed on its website. The company closed 14 locations in the 12 months before filing Chapter 11, the Business Journal reported.
In some cases, locations rebranded instead of going dark. In May 2017, three World of Beer franchise locations in Arlington, Fairfax and Reston, Va., were rebranded as Crafthouse by their owner Evan Matz, according to Reston Now.
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