Several Texas Panera Bread locations remain closed after major franchisee bankruptcy

More than a year after Panera Bread locations across the Houston area abruptly shut their doors, many of the cafés remain vacant, leaving customers wondering if they will ever reopen. The closures stem from the collapse of a major franchise operator, creating one of the chain’s largest regional disruptions in recent years.

Franchise collapse led to widespread closures

The Houston-area closures trace back to EYM Café, a Panera Bread franchisee that operated 15 locations throughout the region. After Panera terminated the franchise agreements, the company filed a lawsuit alleging that EYM failed to make required payments, maintain food safety standards, and pay vendors and landlords.

A federal judge later ordered the franchisee to stop operating under the Panera brand, and EYM subsequently filed for Chapter 11 bankruptcy. 

The legal dispute ultimately led to the closure of more than 10 Panera cafés across the Houston area, including locations in Katy, Conroe, Spring, Tomball, and northwest Houston.

Some locations have new owners

There is some hope for Panera fans. Court records show that eight of the shuttered Houston-area cafés have been sold to an entity affiliated with Hamra Enterprises, one of Panera’s largest franchise operators. According to the CEO  of Hamra Enterprises, seven of the locations are expected to be reopened this summer.

Despite the Houston closures, Panera says it expects to finish 2026 with a net increase in total restaurants nationwide as it continues opening new cafés in other markets. 

New Panera cafés are already planned

Even as many former EYM-operated locations remain closed, Panera has signaled that it remains committed to the Houston market. Construction plans have been filed for two new bakery-cafés in Stafford and Missouri City, with work expected to begin in late 2026 and the restaurants targeted to open in 2027.

For now, however, the fate of many of the former Houston-area Panera locations remains uncertain, illustrating how franchise disputes can have lasting effects on employees, customers, and local communities.

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