Souplantation, a California-based buffet-style restaurant chain below the Backyard Recent firm, introduced it was closing all 97 of its areas Could 7.
Souplantation, known as Candy Tomatoes in areas outdoors of Southern California, was in style for its open bar, the place prospects might serve themselves pasta, soup, salad, ice cream and a number of other baked items.
Nevertheless, the restrictions carried out by the FDA to stop the unfold of coronavirus devastated Souplantation’s enterprise mannequin.
The rules encourage “discontinuing operations, reminiscent of salad bars, buffets, and beverage service stations that require prospects to make use of widespread utensils or dispensers.”
However self-service, Backyard Recent CEO John Haywood advised the San Diego Union-Tribune, is how the restaurant operates.
The rules are comprehensible, however sadly, it makes it very troublesome to reopen. And I’m unsure the well being departments are ever going to permit it. We might’ve overcome some other impediment, and we’ve labored for eight weeks to beat these intermittent monetary challenges however it doesn’t work if we’re not allowed to proceed our mannequin.
In 2016, the Wall Avenue Journal reported that Backyard Recent, the corporate which owns the Souplantation restaurant, filed for Chapter 11 chapter and closed 30 areas.
The corporate was then purchased by Robert Allbritton, the chairman of a personal funding agency. Albritton advised the San Diego Union-Tribune that for the reason that virus confirmed up, income dropped from 70% to 10% and that “the corporate ran out of cash in a single week.”
In mid-March, the corporate briefly closed Souplantation and Candy Tomatoes areas throughout the nation, which Haywood advised Individuals journal value him about $1 million per week.
Though Albritton stated he thought of taking the Paycheck Safety Program funds for small companies struggling as a result of coronavirus, he stated he couldn’t do it understanding it could possibly be months earlier than they may safely function the open bar. As a substitute, he stated the corporate has begun taking a look at chapter as a approach to cope with eating places on leased properties the place the hire is due.