Restaurants have struggled as consumers have been pulling back spending and trading down in their choice of where to eat. That has led to high-proifle closures including Smokey Bones shutting many of its stores and Red Lobster suriviving a Chapter 11 bankruptcy.
“Thirty-seven percent of consumers say they are dining out less frequently than in 2024. Lower-income diners report the most significant decline in dining out, with 44% eating away from home less often this year,” according to data from a YouGuv survey reported by Food Business News.
“Economic pressures, such as inflation and a slowing job market, have led to consumer uncertainty and a general decline in sentiment,” acccording to a Circana press release. “This is causing consumers to be more selective with their dining-out dollars, often prioritizing essential purchases. However, this cautious spending behavior creates opportunities for operators that can deliver on specific consumer demands.”
Now, another popular barbecue chain, Pig Floyd’s Smokehouse, has filed for Chapter 11 bankruptcy protection.
Pig Floyd’s parent company files Chapter 11 bankruptcy
Pig Floyd’s Smokehouse LLC filed a 11 chapter bankruptcy in the Middle District of Florida bankruptcy court on March 13, 2026. This is a voluntary filing; it was assigned the bankruptcy case number #26-01774, according to Bankruptcy Observer.
The bankruptcy petition showed assets in the range of $0-$100,000 with liabilities in the range of $1 milliont to $10 million.
Earlier this month, Pig Floyds owner Thomas Ward, announced on Instagram that he is transitioning the Lee Road location in Winter Park to a new local operator, who will be replacing it with a new concept.
“Throughout this transition, our focus has been on supporting our team,” Ward said in the statement. Lee Road team members were informed of opportunities to apply for open positions at Mills Avenue locations, Pig Floyd’s, and Pigzza, saying some have already transitioned,” he shared.
It’s unclear whether the Chapter 11 filing will impact the sale and transition of the Lee Road location.
Pig Floyd’s Chapter 11 bankruptcy quick facts:
- PB Restaurants LLC, an Orlando-based restaurant operator tied to Pig Floyd’s Smokehouse, filed for Chapter 11 bankruptcy protection, according to PacerMonitor documents.
- The case was filed April 4, 2025, in the U.S. Bankruptcy Court for the Middle District of Florida, Orlando Division, added PacerMonitor.
- The bankruptcy petition is Case No. 6:25-bk-01957 and was assigned to Judge Lori V. Vaughan, the documents showed.
- The filing is listed as a voluntary Chapter 11 case, allowing the company to continue operating while it restructures its debts, Bankruptcy Observer reported.
- The case is classified as an “asset” case, meaning the debtor reported assets available to distribute to creditors, according to the PacerMonitor filings.
- The bankruptcy filing includes a Subchapter V designation, a streamlined restructuring process designed for small businesses.
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Restaurants face significant headwinds
“For restaurants specifically, traffic, sales, and frequency remain pressured, while cost inputs and debt levels remain high, leading to a perfect storm in which bankruptcy is the only solution for some businesses. We saw a diverse list of such filings, from chains such as Hooters and Bertucci’s to eatertainment concepts such as Pinstripes, to franchisees of Del Taco and Panera,” Nation’s Restaurant News reported.
Industry analysts expect the pace of bankruptcies to continue into 2025.
“I think you will see some more,” R.J. Hottovy, head of analytical research at Placer.ai, a software platform that provides insight into customer foot traffic, location data, and demographics told Food & Wine.
While it might not mean they’ll file for bankruptcy, other large chains including Applebee’s, Denny’s, Wendy’s, Rubio’s Coastal Grill, Outback Steakhouse, and Hooters have all closed locations this year or plan to do so in 2025, according to the website.
“People can no longer afford the same food they purchased before the pandemic, unless they cut back on other goods and services,” Donald Grimes, an economist with the University of Michigan told Food & Wine. “Since over time, people tend to upgrade the food they purchase, for example, buying organic products, they must cut back even more on other purchases to be able to afford to buy the food they want.”
Related: 81-year-old food icon files Chapter 11 bankruptcy
