Restaurants are struggling as consumers cut back on spending and trade in their choice of where to eat. That led to high-profile closings, including Smokey Bones closing several of its stores and Red Lobster surviving Chapter 11 bankruptcy.
“Thirty-seven percent of consumers say they are eating out less than they will in 2024. Low-income eaters report the biggest drop in eating out, and 44% are eating away from home less this year,” according to YouGuv survey data reported by Food Business News.
“Economic pressures, such as inflation and a slowdown in the job market, have caused consumer uncertainty and a general decline in sentiment,” according to Circana’s press release.
“This causes consumers to be more selective with their food dollars, often prioritizing essential purchases. However, this cautious spending behavior creates opportunities for users to deliver on specific consumer needs.”
Now, another popular barbecue chain, Pig Floyd’s Smokehouse, has filed for Chapter 11 bankruptcy protection.
Pig Floyd’s Smokehouse LLC filed for Chapter 11 bankruptcy in Florida State bankruptcy court on March 13, 2026. This is a voluntary filing; was assigned bankruptcy case number #26-01774, according to Bankruptcy Observer.
The bankruptcy filing showed assets in the $0-$100,000 range with debts ranging from $1 million to $10 million.
Earlier this month, Pig Floyd owner Thomas Ward shared on Instagram that he is switching the Lee Road location in Winter Park to a new operator, who will be replacing it with a new concept.
“Throughout this transition, we have been focused on supporting our team,” Ward said in a statement. “Lee Road team members were informed about the opportunities to apply for open positions at Mills Avenue, Pig Floyd’s, and Pigzza, and others have changed,” he said.
It is unclear whether the Chapter 11 filing will affect the sale and conversion of the Lee Road property.
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PB Restaurants LLC, the Orlando-based restaurant operator tied to Pig Floyd’s Smokehouse, has filed for Chapter 11 bankruptcy protection, according to PacerMonitor documents.
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The case was filed on April 4, 2025, in the US Bankruptcy Court for the Middle District of Florida, Orlando Division, PacerMonitor added.
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The bankruptcy petition is Case No. 6:25-bk-01957 and was granted by Judge Lori V. Vaughan, the documents showed.
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The filing is listed as a voluntary Chapter 11 case, which allows the company to continue operating while restructuring its debts, Bankruptcy Observer reported.
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The case is classified as an “asset” case, meaning the debtor has reported assets available to distribute to creditors, according to the PacerMonitor filing.
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A bankruptcy filing includes a chapter V designation, a formal reorganization process designed for small businesses.
“In restaurants specifically, traffic, sales, and frequency remain depressed, while cost and debt levels remain high, leading to a perfect storm where bankruptcy is the only solution for some businesses. We have seen a diverse list of such files, from chains like Hooters and Bertucci to entertainment concepts like Pinstripes, to franchisees of Del Taco and Restaurant News.
Industry analysts expect the pace of bankruptcy to continue until 2025.
“I think you’re going to see more,” RJ Hottovy, head of analytics research at Placer.ai, a software platform that provides insights into customer foot traffic, location data, and demographics, told Food & Wine.
While it may not mean they will file for bankruptcy, other major chains including Applebee’s, Denny’s, Wendy’s, Rubio’s Coastal Grill, Outback Steakhouse, and Hooters have closed locations this year or plan to do so in 2025, according to the website.
“People will no longer be able to buy the same food they bought before the pandemic, unless they cut back on other goods and services,” said Donald Grimes, an economist at the University of Michigan, told Food & Wine. “… Over time, people tend to improve the food they buy, for example, to buy organic products, they have to cut down on other purchases in order to be able to buy the food they want.”
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This story was originally published by TheStreet on March 15, 2026, where it appeared first in the category Restaurants. Add TheStreet as a favorite source by clicking here.
