It’s been a rough several years for restaurant chains. Many have been facing headwinds on two fronts: consumers who are pulling back on discretionary spending as inflationary pressures bite, and rising operating costs. These pressures have resulted in numerous chains filing for bankruptcy.
Now, another chain’s owner has joined those ranks: 801 Restaurant Group, the parent company of the 801 Chophouse chain of steakhouses, has filed for bankruptcy. Here’s what you need to know.
What’s happened?
Earlier this month, 801 Restaurant Group, owner of several companies that own 801 Chophouse, 801 Fish, and 801 Local, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Kansas.
The group’s steakhouses, the first of which was opened in 1993 in Des Moines, Iowa, have been a popular destination for Midwestern patrons for over 30 years. In 2013, 801 Restaurant Group expanded beyond its steakhouse roots to open 801 Fish, an upscale seafood restaurant.
But in recent years, the group, like many restaurant chain owners, has fallen on harder times. According to court documents filed on April 10, 801 Restaurant Group has about $18.7 million in liabilities on its books and $15 million in assets.
In an emailed statement, 801 Restaurant Group told Fast Company that while 801 Restaurant Group LLC is in bankruptcy, its individual companies that own and operate its restaurants are not.
801 Restaurant Group said the reason it is filing for bankruptcy is due to financial issues that “arose from guaranties given by 801 Restaurant Group LLC for other companies that it owns.” The primary issue concerns the recent closures of 801 Fish in Denver and its latest concept restaurant, 801 on Nicollet, in Minneapolis.
Are 801 Chophouses closing?
Of course, what fans of 801 want to know most is whether their beloved chophouses will be closing. The good news is that, for now, it doesn’t appear that 801 Restaurant Group will close any locations.
“Except for the two closed restaurants, Chapter 11 is not expected to have any impact on the remaining locations,” the company said.
801 Restaurant Group has stated that the purpose of its Chapter 11 bankruptcy is to restructure its debts. If it is successful in that, there is no sign that the company will close additional locations, all of which currently remain open and operating. Those locations currently include:
801 Fish
- 172 Carondelet Plaza, Clayton, MO 63105
801 Chophouse
- 3000 E 1st Ave., Denver, CO 80206
- 801 Grand Ave., Suite 200, Des Moines, IA 50309
- 11616 Ash St., Leawood, KS 66211
- 801 Nicollet Mall, Minneapolis, MN 55402
- 137 Carondelet Plaza, Clayton, MO 63105
- 71 E 14th St., Kansas City, MO 64106
- 1403 Farnam St., Omaha, NE 68102
801 Restaurant Group is just the latest dining provider to file for bankruptcy
Both the sit-down dining and fast-food industries have experienced rough waters for several years. The troubles began around the time of the pandemic, when lockdowns and fears of COVID-19 stopped many people from dining out.
But even after the pandemic ended, foot traffic for many large chains never returned to their pre-pandemic levels. Combine a loss of foot traffic with inflation-wary consumers cutting back on discretionary costs (like eating out) and rising operational costs eating into restaurants’ bottom lines, and it’s no surprise that many companies in the industry have filed for bankruptcy in recent years.
Perhaps the most high-profile bankruptcy filing in the restaurant space was Red Lobster in 2024. But since then, other food chains, or their franchisees, have filed for bankruptcy, including Johnny Rockets and Smokey Bones owner FAT Brands, Popeyes Louisiana Kitchen franchisee Sailormen Inc., and Applebee’s Neighborhood Grill + Bar franchisee NRPF Group Two.