The food industry has seen a wave of high-profile bankruptcies this year, affecting everyone from major restaurant companies to regional franchise operators. While some businesses are using Chapter 11 to restructure and stay open, others have sold assets or closed locations as rising costs and changing consumer habits continue to pressure the industry.
FAT Brands tops the list
Perhaps the year’s biggest filing came from FAT Brands, the parent company of well-known chains including Fatburger, Johnny Rockets, Round Table Pizza, Fazoli’s, Great American Cookies, Marble Slab Creamery, Pretzelmaker, Hot Dog on a Stick, and several others. The company entered Chapter 11 in January after struggling under more than $1 billion in debt.
Despite the filing, most restaurants remained open while the company pursued a court-supervised restructuring. In recent months, a Texas bankruptcy court approved the sale of much of the company’s restaurant portfolio as part of the reorganization process.
Del Monte’s restructuring continues
Although Del Monte Foods filed for Chapter 11 in 2025, the effects have continued throughout 2026. The company sold major portions of its business to multiple buyers, including Fresh Del Monte Produce, Pacific Coast Producers, and B&G Foods.
The restructuring has also had ripple effects across California’s agricultural industry, with warehouse closures and reduced demand affecting peach growers and processors.
Smaller operators also feeling the pressure
Financial struggles haven’t been limited to national companies. Earlier this month, Rogue Fare LLC, a franchisee operating five Mountain Mike’s Pizza restaurants in Oregon, filed for Chapter 11 bankruptcy.
Mountain Mike’s emphasized that the filing affects only the franchisee—not the broader brand—which continues expanding nationwide with more than 300 restaurants and plans for additional openings this year. Industry analysts point to inflation, higher labor costs and softer consumer spending as ongoing challenges for many restaurant operators.
A challenging year for food businesses
While bankruptcy doesn’t necessarily mean a company will disappear, 2026 has underscored the financial pressures facing the food and restaurant industry. Rising operating costs, elevated debt loads and shifting consumer spending have forced companies of all sizes to rethink their business strategies, and analysts expect restructuring activity to remain elevated if those headwinds continue.
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