Casual Dining Chain Bankruptcies Highlight Industry in Flux

America’s casual dining chain restaurants, struggling with operational costs and changing consumer habits, are rapidly going bankrupt in last-ditch efforts to rightsize or sell themselves to opportunistic investors.

The Chapter 11 filing in May by Red Lobster may be the most spectacular restaurant collapse of 2024, but the iconic seafood chain is just one of several brands forced into bankruptcy this year due to unsustainable debt and bloated operations. The trend continued earlier this month as Italian eatery Buca di Beppo and craft-beer focused chain World of Beer sought refuge in bankruptcy.

For many, the goal is to use the ...