Restaurant Chain in Illinois, Wisconsin Files for Bankruptcy

A major Italian restaurant chain with dozens of locations across the United States, including in Illinois and Wisconsin, has filed for bankruptcy.

The company owes hundreds of thousands of dollars to multiple landlords and property managers, including a $335,000 debt owed to a restaurant supplier in Illinois. The company also owes $19 million to Sysco, a large restaurant food distributor, per NBC 5 Chicago.

A "Difficult Decision" for the Italian Food Giant:

Bravo Brio Restaurants LLC, who operates Brio Italian Grille and Bravo! Italian Kitchen, filed for Chapter 11 bankruptcy last week. In total, the Orlando-based company's liabilities and assets are valued somewhere in the realm of $50 - $100 million while owing between 200 and 999 creditors.

NBC 5 Chicago received a press release from Bravo Brio explaining the "difficult decision" to try and improve its financial situation:

The Chapter 11 process will allow the Company to quickly and efficiently reorganize its business for a sustainable and successful future, including closing underperforming locations, restructuring debt, and streamlining and reducing operational expenses - a portion of Bravo Brio's press release, per NBC 5 Chicago

Why Casual Dining Restaurants are Struggling:

Bravo Brio cited declining consumer demands in the casual dining restaurant sector coupled with increased competition, most notably from fast-casual chains, as compounding factors in their financial woes. Couple that with inflation, rising food and labor costs, and a sharp decrease in customer spending and you have a chain that is significantly underperforming.

Restaurants like Brio Italian Grille and Bravo! Italian Kitchen used to thrive by virtue of being in densely populated shopping centers. They might not have been your first choice for food, if given options, but if you were walking around the mall and one happened to be within walking distance, that was the perfect situation for a captive audience of sorts. Now, countless shopping centers around the country have empty stores and significantly lower foot traffic.

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What Could Change for Bravo Brio in the Immediate Future?:

Despite the bankruptcy filing, Bravo Brio stated they expect "minimal disruptions" to their daily operations. For one, Brio Italian Grille operates 25 restaurants in the United States. Bravo! Italian Kitchen has 23 locations, including one in Milwaukee. A Brio Tuscan Grille used to exist in Lombard, IL at Yorktown Center, and Bravo! Cucina Italian Kitchen once had a presence in Glenview, IL.

Read more about Bravo Brio filing for bankruptcy on NBC 5 Chicago's website.