The restaurant industry has faced another difficult year so far in 2026, with rising operating costs, changing consumer habits, and lingering financial pressures pushing several restaurant operators into bankruptcy. Some of the year’s biggest cases have involved chains that once appeared poised for significant growth.
Salad and Go
Salad and Go delivered one of the most dramatic restaurant collapses of the year. The Arizona-based drive-thru chain filed for Chapter 11 bankruptcy protection in August and permanently closed all 70 of its restaurants. The company cited sustained pressure on consumer demand, past strategic growth challenges, and rising costs.
The chain had expanded rapidly across the Southwest and had been viewed as one of the country’s fastest-growing restaurant concepts. Dutch Bros is interested in purchasing the real estate and related assets of 65 former Salad and Go locations, which could give many of the properties a future as drive-thru coffee shops.
Moe’s Southwest Grill franchisee
Quality Fresca, a major Moe’s Southwest Grill franchisee, filed for Chapter 11 in August after years of financial difficulties. The operator had once run 69 Moe’s restaurants, but had reduced its footprint to 38 by the time it filed for bankruptcy. It is seeking to terminate leases on 16 additional restaurants.
The company cited inflation and changing consumer behavior as factors that undermined its efforts to stabilize the business following the pandemic.
Lena Brands
Lena Brands, the parent company of Shari’s Cafe & Pies and Coco’s Bakery Restaurants, filed for Chapter 11 in May. The company said a cash-flow crisis involving merchant cash advance lenders and frozen funds contributed to the bankruptcy filing. Shari’s had already closed numerous locations across the Pacific Northwest before the filing.
Together, these cases highlight the continuing financial pressure facing restaurants in 2026, particularly operators with large physical footprints and significant labor, food, rent, and debt costs.
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