Macaroni Grill Files For Bankruptcy, Already Shut Down 1/3 of Restaurants
Romano’s Macaroni Grill is known for its tasty pasta and singing waiters, but with as much joy as is portrayed inside the restaurant, it has also been struggling, and has filed for Chapter 11 bankruptcy protection, according to NRN.
If you’ve noticed that Macaroni Grills around you started to disappear, you’re not going crazy. They’ve recently closed down 37 of its 116 locations, and is essentially blaming millennials for it, saying they’ve noticed “a trend among younger customers to spend their disposable income at non-chain ‘experience-driven’ restaurants.”
The Italian restaurant said that it had issues with profits, as their sales were decreasing, while at the same time labor costs went up. It also said it had $23 million in secured debt.
The restaurant closings has not gone smoothly, either, as Macaroni Grill is being sued by company landlords over the closures.
The restaurant’s downfall has been gradual, as it has been struggling for years. In 2013, when it still had 210 locations, the company was sold to Ignite Restaurant Group for a mere $55 million. About 2 years later, Ignite sold it to Redrock Partners for a paltry $8 million. By 2015, Macaroni Grill’s value fell by 95 percent, according to past NRN reports.
Even with all its recent trouble, Macaroni Grill was tremendously popular at one point. If you’re a fan of the restaurant, you might want to enjoy it while it’s still around.