Lesser-Known Restaurants File Bankruptcy as Competition Heats Up

Restaurant chains including McDonald’s, Olive Garden and Popeyes are battling to get customers through the door as more Americans choose to eat at home. Meanwhile, a growing number of lesser-known brands that can’t attract new diners are facing bankruptcy and restructuring.

American Blue Ribbon Holdings LLC, the owner of Village Inn and Bakers Square, and Bar Louie Restaurants, a chain of gastropubs, both filed for bankruptcy on Monday. Each cited declining foot traffic in the U.S. as reason for the need to seek Chapter 11 protection.

A Bar Louie restaurant in the River North neighborhood of Chicago.

Photographer: Tim Boyle/Bloomberg

“The business is just over-built, especially casual dining and ...