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Second-tier fast food brands have struggled since the Covid pandemic.
This is because chains like McDonald’s and Domino’s had already invested heavily in their apps, delivery operations and/or partnerships, while smaller brands were not prepared.
It was easy for McDonald’s, Domino’s, Chipotle and Starbucks to pivot to a takeout and delivery model when Covid forced the shutdown. These chains didn’t invest in technology because they anticipated a global pandemic, but once one hit, they were ready for it.
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Other companies were surprised by a drop in sales. Once operations returned to normal, they were hit by a double whammy of higher labor costs and higher food prices. Add to that the pressure to offer value-added meals—typically multiple meals for $5—and you can see why some franchises have struggled.
Burger King lost many franchise operators to its Chapter 11 bankruptcy, and had to step in to buy hundreds of franchise restaurants to keep them from closing. (Right) Pizza Hut was also hit by a major franchise operator filing for Chapter 11 bankruptcy and suing the company.
Now, another division of the same company has quietly closed more than half of its locations of another popular fast-food brand.
Photo credit: Shannon O’Hara/Getty Images for Pizza Hut
EYM Group Faces New Conflicts
EYM Group operates restaurants in 7 states including Texas, Florida, Illinois, Indiana, Georgia, South Carolina and Wisconsin. The company operates franchises for Burger King, Denny’s, Pizza Hut, KFC and Panera Bread.
It filed for Chapter 11 bankruptcy in July for EYM Pizza and EYM Pizza of Indiana. The company is also embroiled in a lawsuit against Yum Brands.
“EYM has accused the company of lagging behind its competitors in technology and practices, and the company’s pizza division filed for bankruptcy after closing several of its Midwest units. Last year, EYM subsidiary EYM King closed dozens of units and is currently facing a lawsuit from Armada Oil and Gas for allegedly failing to pay rent and breaching its lease.” Dive Restaurant It has been reported.
In its Chapter 11 bankruptcy filing, EYM Pizza said it had liabilities ranging from $500,000 to $1 million, and assets ranging from $0 to $50,000. EYM Pizza of Indiana’s Chapter 11 bankruptcy filing did not include the extent of assets or liabilities.
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EYM closes more than half of its KFC branches
While it’s unclear how the Chapter 11 bankruptcy filings will affect its other business operations, the company has closed more than half of its KFC restaurants.
The company has closed 25 of its 47 KFC locations. The company itself did not share this information, but it was reported by Local news agencies.
A window of a site has been marked as closed.
More bankruptcy:
- Home Depot Competitor Files for Chapter 11 Bankruptcy
- Popular Italian Restaurant Chain Files for Chapter 11 Bankruptcy
- Another troubled transportation company files for Chapter 11 bankruptcy
“We want to take this opportunity to express our sincere gratitude for your loyal support over the years. It is with mixed feelings that we announce the closing of our store,” reads a sign posted on the restaurant’s door. “We understand that this news may come as a surprise, but we feel it is the right decision for us at this time.”
EYM did not comment on the closures or the ongoing Chapter 11 bankruptcy proceedings.
“Restaurant Dive confirmed that the locations were not accepting online orders, and contacted several of the closed stores without receiving a response. When KFC filed its franchise disclosure document in March, EYM Chicken was listed as having 47 stores at the end of 2023, meaning the recent closures likely affected the majority of its units,” Website It has been reported.
EYM Chicken only began operating in 2019. The company has not acknowledged its closings or Chapter 11 filings on any of its websites.
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