Trade groups estimate up to 30% of restaurants could permanently close because of the pandemic, CNBC reported Saturday.
Citing a report from S&P Global Ratings released on Friday, CNBC reported 15 publicly traded restaurant chains have already been tagged as most likely to file for bankruptcy.
The report found the three most vulnerable were casual dining chain Kisses From Italy, with a 41.2% chance of defaulting within the next 12 months, followed by Muscle Maker and Giggles N’ Hugs.
Starbucks, Denny’s and Yum Brands made the list, although they were tagged as much less vulnerable, CNBC reported.
Franchisees of large fast-food chains are also struggling, the news outlet reported: NPC International, Pizza Hut’s largest U.S. franchisee, filed for Chapter 11 on July 1.
According to CNBC, the coronavirus crisis will likely permanently change the restaurant industry, and prove to be the death for buffet-style restaurants.
CNBC reported chains that’ve been hit hard include CEC Entertainment — Chuck E. Cheese’s parent company — which filed for bankruptcy in June; Garden Fresh Restaurants, parent company of buffet-style restaurants Souplantation and Sweet Tomatoes, which filed for Chapter 7 bankruptcy in May and closed all of its locations permanently; and the U.S. arm of Le Pan Quotidien, PQ New York, which sought Chapter 11 bankruptcy protection in late May.
