Imagine watching a once-thriving gourmet burger chain struggle as mounting costs, supply chain issues, and changing consumer tastes take a toll. You might wonder how a brand that once led with innovative flavors can fall so quickly into bankruptcy. The story behind its decline offers lessons on industry challenges and resilience, but there’s more beneath the surface that could change everything—if you look closer.
The gourmet burger industry is facing a significant downturn as multiple chains file for bankruptcy amid mounting financial pressures. If you’ve been following the market, you’ve probably noticed that once-thriving brands are now struggling to stay afloat. Between 2024 and 2025, several well-known chains, including those that once boasted rapid growth and loyal customer bases, are filing for Chapter 11 protection.
The gourmet burger industry is in decline, with many brands filing for bankruptcy amid rising costs and changing consumer habits.
This isn’t just a minor setback; it signals a broader industry crisis driven by rising costs, changing consumer habits, and operational challenges. Recent sales data indicates a consistent decline in industry performance, underscoring the severity of the downturn. Additionally, the best vegetable pots can encourage home gardening and sustainable practices, providing an alternative food source amidst rising costs.
You might’ve seen EYM Chicken of Indiana LLC, which filed for bankruptcy in June 2025 after closing nearly half of its locations—25 out of 47—during 2024. Franchisees of major brands like KFC, Pizza Hut, and Burger King also face financial distress, with many shuttering outlets due to franchise disputes and unpaid debts.
TGI Fridays, known for its burger offerings, filed for Chapter 11 in late 2024 and responded by closing 30 locations early in 2025, reducing its footprint drastically from 270 to just over 130 stores. These closures are a stark indicator of the economic strain felt throughout the industry.
Across the Atlantic, the UK-based chain Almost Famous had to shut all its locations early in 2025, citing financial strain, although some reopened under new ownership. Meanwhile, Red Robin announced plans to close up to 15 underperforming restaurants this year, with the possibility of more closures in the coming years.
The trend isn’t limited to just one segment; even chains like eeges, a Southern Arizona-based sub and slushie chain, filed for bankruptcy in 2024 amid lawsuits and unpaid vendor debts, illustrating the widespread struggle across diverse food service models.
The root causes are clear. Rising operational costs, inflation, supply chain disruptions, and post-pandemic economic pressures have squeezed profit margins across the board. Many chains experienced significant sales declines; for example, TGI Fridays saw a 63% drop in sales from 2008 to 2023, forcing it to close more than half of its locations.
The aftermath of COVID-19 hit harder than expected, disrupting customer traffic and operational stability. Increased costs for food, packaging, and equipment, especially with tariffs, added to the financial strain.
Franchisee disputes over royalties and advertising fees have also fueled instability. Many bankruptcies originate from franchisee entities rather than corporate owners, highlighting tensions between franchisees and parent companies.
Lawsuits and franchise terminations over unpaid royalties have caused closures and further weakened the industry. As these issues unfold, it’s clear that the once-successful gourmet burger market faces a challenging future, with economic pressures forcing many brands to downsize or shutter entirely.
