A large restaurant franchise operator is facing financial collapse after filing for Chapter 11 bankruptcy, putting dozens of well-known casual dining locations across several Southern states at risk. The company has already shut down multiple restaurants as rising costs and weaker consumer spending continue to pressure the industry.
Franchisee files for Chapter 11
Neighborhood Restaurant Partners Florida, an Atlanta-based Applebee’s franchisee, filed for bankruptcy in March after struggling with declining sales, inflation, and rising operating costs. Court filings reportedly showed the company carrying between $10 million and $50 million in liabilities.
The operator had already closed multiple restaurants over the past year in an attempt to cut losses. Reports indicate nine locations closed in 2025, followed by five more closures early in 2026.
Florida locations among those affected
Several recently shuttered restaurants were located in high-traffic Florida tourist areas, including Orlando, Kissimmee, Daytona Beach, and Panama City Beach.
Despite the bankruptcy filing, Applebee’s parent company, Dine Brands Global, is expected to step in and potentially acquire the remaining restaurants through the bankruptcy process.
Applebee’s says brand remains strong
While closures have sparked concern, Applebee’s executives say the broader chain is still stable. The company continues operating roughly 1,500 locations worldwide and is expanding its newer dual-branded Applebee’s-IHOP restaurant concept.
The chain has also confirmed additional closures in several states this year, calling them part of routine business adjustments for a mature restaurant brand.
Industry analysts say casual dining chains continue to face pressure from inflation, changing consumer habits, and reduced discretionary spending, creating a difficult environment for franchise operators nationwide.Â
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