California Pizza Kitchen has filed for bankruptcy, here’s what it means for the pizza chain
COVID-19 has not been kind to anyone, including successful businesses. According to CNN, the latest fast food or restaurant to file for bankruptcy is California Pizza Kitchen. Here’s why and what it means for the fast casual chain going forward.
According to the source, California Pizza Kitchen, which has been around for 35 years, filed for Chapter 11 earlier this week. This, fortunately, will help the restaurant deal with some of the debt, so all hope isn’t necessarily lost here for fans of the pizza joint.
CNN further shares that California Pizza Kitchen will be closing many locations, but only the most unprofitable to help catch up financially. What’s the reason? Well, the COVID-19 outbreak.
Will there still be California Pizza Kitchen locations?
Due to the virus outbreak, California Pizza Kitchen and all other businesses were forced to shut down. Even though California Pizza Kitchen and other food services could continue takeout and delivery, indoor dining was no longer allowed, and this is something that helped the company greatly.
In fact, the source states that indoor dining makes up about 80% of California Pizza Kitchen’s sales. Ouch! But don’t worry, California Pizza Kitchen locations will still be around.
Some locations will close, perhaps most, but there will still be a few restaurants left standing until the company recovers. Filing for bankruptcy, though, is a sign that we are in for a long wait.
Are you a fan of California Pizza Kitchen? Other restaurants and fast food chains that have declared bankruptcy include:
- Chuck E. Cheese’s
- Sweet Tomatoes
- Bar Louie
- Twisted Root Burger Co.
Have you been ordering delivery or picking up to go from your favorite restaurants this year? Do you feel it’s safe to dine-in?