Moe’s Southwest Grill customers in several states could soon have fewer locations to choose from as one of the chain’s largest franchisees undergoes a major financial restructuring. The operator has already closed dozens of restaurants in recent years, and its latest move could eliminate more locations from its portfolio.
Franchisee files for Chapter 11
Quality Fresca I LLC, a Palm Beach, Florida-based franchisee of Moe’s Southwest Grill, filed for Chapter 11 bankruptcy protection on August 4 in the U.S. Bankruptcy Court for the Southern District of Florida. The company operated 38 Moe’s restaurants at the time of the filing across Florida, South Carolina, Virginia, and Washington, D.C.
Quality Fresca once operated 69 Moe’s restaurants. It closed 19 underperforming locations between 2021 and the end of 2025, followed by another 12 closures this year.
The franchisee cited declining customer traffic, higher food and shipping costs, labor shortages, inflation, and increased competition among the factors contributing to its financial struggles. The company said the combination of declining revenue and continuing rent, debt, and other fixed expenses put pressure on its liquidity.
16 restaurants targeted for closure
As part of the bankruptcy proceedings, Quality Fresca is seeking to reject leases at 16 restaurants. Fourteen of those locations are in Florida, while one is in Alexandria, Virginia, and another is in Brunswick, Georgia.
If the lease rejections are approved and no other arrangements are made, Quality Fresca would be left with 22 restaurants.
Quality Fresca hopes to use the Chapter 11 process to restructure its business by eliminating unprofitable restaurants, reducing costs, and preserving its strongest locations. A court-supervised sale of some or all of the remaining restaurants is also possible.
The bankruptcy involves the franchisee, not Moe’s Southwest Grill’s corporate parent, GoTo Foods. The national chain continues to operate separately.
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