Hundreds of restaurant chains face closure in 2025, with some operators forced to file for Chapter 11 or Chapter 7 bankruptcy protection to liquidate assets.
In some cases, restaurant chains have closed all of their locations without filing for bankruptcy. That’s the case for K&W Cafeterias, an 88-year-old casual dining chain that operates eight restaurants in North Carolina and one in Virginia.
The restaurant chain, founded in 1937, had 35 locations before it began downsizing in 2020 following the Covid-19 pandemic.
K&W Cafeterias, a popular Southern comfort food, cafeteria-style restaurant chain for decades, closed all nine locations on December 1, 2025 and posted a message on its Facebook page, which has since been disabled. The company’s website has also been disabled.
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K&W Cafeteria was established in 1937.
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Operating up to 35 locations by 2020.
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The remaining nine restaurants will close on December 1, 2025.
The 88-year-old restaurant chain posted a farewell message on its website and posted it on the front doors of its stores.
“We are sad to announce that after proudly serving this community and many others for many years, K&W Holdings Group LLC will be closing permanently. All existing locations will close on December 1, 2025. We thank you for your support of our business over the years. K&W Holdings Management.”
Several other casual restaurant chains have filed for bankruptcy and closed locations this year. Italian restaurant chain operator Bravo Brio Restaurant LLC, the parent company of the 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 August 18, 2025, to restructure its business and restructure its debt.
Popular Mexican chain Abuelo’s Mexican Restaurant filed for Chapter 11 bankruptcy in September 2025, citing rising costs, labor issues and declining sales. The company had about 40 restaurants at its peak, but that was down to 16 by the time it filed for bankruptcy.
Now, the franchisee of the 84-year-old fast-casual chain Dickey’s Barbecue Pit has filed for Chapter 7 bankruptcy to close one of its California locations.
Elk Grove, Calif., franchisees Miguel Zarate Ortiz and Maria Zomeno Sevilla filed an application with 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.
