84-year-old dining chain franchisee files Chapter 7 bankruptcy
Kirk O’Neil
Sat, December 13, 2025 at 2:50 PM EST
3 min read
Restaurant chains have faced hundreds of closings in 2025, with some operators forced to file Chapter 11 or Chapter 7 bankruptcy protection to liquidate assets.
In some cases, restaurant chains shut down all locations without filing for bankruptcy. That was the case with 88-year-old casual dining chain K&W Cafeterias, which operated eight locations in North Carolina and one in Virginia.
The restaurant chain, founded in 1937, had grown to 35 locations before it started downsizing after the Covid-19 pandemic in 2020.
K&W Cafeterias closes all 9 locations
K&W Cafeterias, which was a popular Southern comfort-food, cafeteria-style restaurant chain for decades, closed all nine of its locations on Dec. 1, 2025, with a message on its Facebook page, which has since been disabled. The company's website has been disabled, as well.
K&W Cafeterias milestones:
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K&W Cafeterias founded 1937.
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Operates up to 35 locations before 2020.
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Closes remaining 9 restaurants on Dec. 1, 2025.
The 88-year-old restaurant chain’s website had included a farewell message that it posted on its locations’ front doors.
“We are sorry to announce that after proudly serving this and many other communities for years, K&W Holdings Group LLC will be closed permanently. All existing locations closed effective 12/1/2025. We thank you for your support throughout our years in business. K&W Holdings Management.”
Restaurant chains file for bankruptcy protection
Several other casual restaurant chains have filed for bankruptcy and shuttered locations this year. Italian restaurant chain operator Bravo Brio Restaurants LLC, the parent company of popular upscale Italian restaurant chains Bravo Italian Kitchen and Brio Italian Grille, filed for Chapter 11 bankruptcy for the second time in five years on Aug. 18, 2025, to reorganize its businesses and restructure debt.
Popular Mexican chain, Abuelo’s Mexican Restaurant, filed for Chapter 11 bankruptcy in September 2025, blaming rising costs, labor issues, and declining sales. The company had about 40 locations at its peak, but had diminished to 16 restaurants when it filed for bankruptcy.
Dickey's franchisee liquidates in Chapter 7 bankruptcy
And now a franchisee of the 84-year-old fast-casual restaurant chain Dickey's Barbecue Pit has filed for Chapter 7 bankruptcy liquidation to close down a California location.
Elk Grove, Calif. franchisees Miguel Zarate Ortiz and Maria Zomeno Sevilla filed their petition in the U.S. Bankruptcy Court for the Eastern District of California on Dec. 8 listing only $17,987 in assets and about $1.04 million in liabilities, the Sacramento Business Journal reported.
Story Continues
Most of the liabilities are debts owed to the Dallas-based parent company.
The Elk Grove franchisee did not state a reason for filing for Chapter 7 bankruptcy in its petition. The restaurant's listing on the Dickey's locations page reveals that the store is closed, and the phone number listed is not operational.
Dickeys closed 85 net locations in 2024
Dickey's restaurant chain closed a net of 85 U.S. locations in its fiscal year 2024, which ended on May 31, 2024, Restaurant Business Magazine reported. The company closed 97 locations in the fiscal year, but also opened 12 locations.
Dickey's, however, reported that it opened 46 new locations from January 2025 through August 2025 and was on pace to open 60 new locations by the end of the year, the company said in an October 2025 statement.
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The company, however, did not reveal how many locations have closed in 2025.
Dickey's, which was established in 1941, claims that it has 387 corporate-owned and franchised locations in the U.S. and several countries, according to Dickey's website.
Dickey's Barbecue Pit location openings and closings
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Dickey's opens 12 stores and closes 97 for 85 net location closings fiscal year ending May 31, 2024.
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Dickey's opens 46 new stores January 2025 through August 2025.
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Dickeys has a total of 387 locations worldwide in October 2025.
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This story was originally published by TheStreet on Dec 13, 2025, where it first appeared in the Restaurants section. Add TheStreet as a Preferred Source by clicking here.
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