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Patis Bakery Files for Chapter 11 Bankruptcy Amid Economic Challenges
Edited by: Fern Sidman
Patis Bakery, a beloved regional chain known for its exceptional kosher pastries, has filed for Chapter 11 bankruptcy. According to published reports, this move comes as the company faces the same economic pressures that have plagued many local bakeries and cafes since the Covid-19 pandemic. Despite the financial difficulties, Patis Bakery plans to continue operating at least some of its locations.
Patis Bakery has established itself as a favorite among kosher pastry enthusiasts in New York and New Jersey, serving a niche market with a broad appeal, as was recently reported on TheStreet.com web site. The bakery’s ability to attract customers who do not necessarily follow a kosher diet speaks to the quality and appeal of its offerings.
“Patis is a place for pastry enthusiasts,” the company’s website proudly proclaims, as per the report on TheStreet.com. “We proudly serve across 14 locations throughout New York, New Jersey, and Brooklyn. Here, the art of baking transcends tradition, blending the finest European and American techniques to create an unforgettable culinary experience. From the crunch of our croissants to the velvety smoothness of other treats, each bite tells a story.”
One of the defining features of Patis Bakery is its commitment to kosher standards, certified by the Orthodox Union. As per the information provided in TheStreet.com report, this certification ensures that the bakery’s products adhere to strict dietary laws detailed in the Torah, which prohibit certain animals, fowl, and fish, such as pork, rabbit, eagle, owl, catfish, and sturgeon, as well as most insects, shellfish, and reptiles. Additionally, kosher species of meat and fowl must be slaughtered in a prescribed manner, and meat and dairy products cannot be manufactured or consumed together.
The Covid-19 pandemic has severely impacted the food and hospitality industry, and Patis Bakery is no exception. The company has struggled with the same challenges that have affected many local bakeries and cafes, including reduced foot traffic, supply chain disruptions, and increased operating costs as was explained in TheStreet.com report. These factors have culminated in the decision to file for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware in Wilmington.
Chapter 11 bankruptcy allows companies to reorganize their debts and attempt to regain profitability while continuing operations. The report on TheStreet.com said that for Patis Bakery, this means that while some locations may close, the company intends to keep at least a portion of its stores open.
The future of Patis Bakery will depend on its ability to navigate the bankruptcy process and adapt to the changing economic landscape. The company’s dedication to high-quality kosher pastries and its strong customer base will be crucial factors in its recovery efforts.
While the bankruptcy filing is a significant setback, it also presents an opportunity for Patis Bakery to reassess its business model, streamline operations, and find new ways to connect with its customers, TheStreet.com report indicated. The enduring popularity of its products suggests that there is a solid foundation upon which to build a revitalized and more resilient business.
“I’m here to share some significant updates about Patis Bakery, the first kosher café chain of its size in the U.S. Patis took a bold step to bring high-quality kosher cafés to areas that traditionally lack kosher options, including the heart of Times Square,” Elon Kornblum, the publisher of Great Kosher Restaurants magazine and a vocal advocate for the bakery, wrote in a message on Facebook, as was reported last week by the CrownHeights.info web site. “Recently, Patis Bakery filed for Chapter 11 bankruptcy as part of a strategic restructuring plan. This move is designed to help them continue to serve our community. Despite the challenges, 11 of their locations remain open, ready to serve you artisan quality sandwiches and pastries you’ve grown to love.”
Patis Bakery’s journey from its humble beginnings in Lyndhurst to becoming a staple in the kosher food industry is a testament to its commitment to quality and innovation. By blending European and American baking techniques, Patis has created a unique culinary experience that resonates with a wide audience.
Patis Bakery took a significant step in September 2020 by launching a new location in Crown Heights on Troy Ave, further solidifying its presence in the kosher culinary scene, as was detailed in the report on the CrownHeights.info web site.
As part of the restructuring process, Patis Bakery has closed three of its locations. However, the remaining stores continue to operate, and the company is committed to serving its customers. CrownHeights.info reported that Elon Kornblum emphasized the importance of community support during this transitional period, urging people to continue patronizing Patis Bakery.
“Patis took a bold step to bring high-quality kosher cafés to areas that traditionally lack kosher options, including the heart of Times Square,” Kornblum wrote in a message on Facebook. “Despite the challenges, 11 of their locations remain open, ready to serve you artisan quality sandwiches and pastries you’ve grown to love.”
While Patis Bakery has not yet filed a turnaround or funding plan with the bankruptcy court, the company remains focused on its strategic restructuring efforts. The goal is to emerge from the bankruptcy process stronger and more resilient, capable of continuing its mission to provide exceptional kosher dining experiences.
The chain’s dedication to maintaining high standards has earned it a reputation for excellence, and its products have become synonymous with kosher artistry.
Elon Kornblum has called on his followers to rally behind this cherished Jewish-owned business.
In a heartfelt message, Kornblum emphasized the importance of supporting Patis Bakery during this critical time. “By standing behind this Jewish-owned business, we can help them continue to grow and thrive,” he wrote. “Without our support, there is a possibility that they could close their doors, and I for one do not want that! Let’s rally together and support Patis, ensuring they can keep bringing kosher excellence to our communities.”
Kornblum’s call to action is not just a plea for patronage but also a reminder of the bakery’s significant cultural and culinary contributions. Patis Bakery has become a beacon of kosher cuisine, offering products that appeal to both kosher and non-kosher consumers alike.
Amid the restructuring process, Kornblum advised customers to use any gift cards they have, reassuring them that Patis Bakery is committed to honoring all gift cards, as was indicated in the CrownHeights.info report. “If you bought a gift card, it would be prudent to use it,” he said, calling attention to the bakery’s dedication to fulfilling its commitments despite the financial hurdles.
Despite the bankruptcy filing and the closure of three locations, Patis Bakery remains operational at 11 locations across New York and New Jersey. These locations continue to offer the artisan quality sandwiches and pastries that have made the bakery a favorite among many.
Amsterdam
676 Amsterdam Ave, NY, NY 10025
(646) 449-8730
Arthouse
Located in The Arthouse Hotel
2178 Broadway, NY, NY 10024
(917) 650-4061
Avenue M
1716 Avenue M, Brooklyn, NY 11230
(347) 462-3044
Borough Park, Brooklyn Square
3611 14th Ave, Brooklyn, NY 11218
(347) 365-5271
Bryant Park
44 West 37th Street, NY, NY 10018
(646) 720-0970
Crown Heights
266 Kingston Ave, Brooklyn, NY 11213
(929) 234-6365
Lakewood
1700 Madison Ave, Lakewood, NJ 08701
(732) 415-0088
Lawrence
295 Burnside Ave, Lawrence, NY 11559
(516) 980-0880
Lyndhurst
323 Ridge Rd, Lyndhurst, NJ 07071
(201) 438-4004
Teaneck
439 Cedar Ln, Teaneck, NJ 07666
(201) 836-1700
Times Square
750 8th Avenue, NY, NY 10036
(212) 652-7115
As Patis Bakery navigates through the Chapter 11 bankruptcy process, the support from its loyal customers and the broader community will be crucial. The bakery’s commitment to quality and its unique niche in the kosher market are pillars that can help it emerge stronger from this financial restructuring.
The call to action from Kornblum and the continued operation of multiple locations indicate a positive outlook for Patis Bakery’s future. By rallying together, the community can ensure that this beloved bakery continues to provide its exceptional kosher offerings and remains a staple in their culinary lives.
Bakery chains and cafes have long been a staple of urban life, providing essential morning and afternoon pick-me-ups for busy commuters and office workers. However, the landscape has dramatically shifted in the wake of the Covid-19 pandemic, creating significant challenges for these businesses as they strive to become full-day operations, according to the report on TheStreet.com. Even industry giants such as Starbucks have had to innovate and adapt to maintain foot traffic beyond the traditional breakfast and lunch hours.
For many bakery chains and cafes, extending customer engagement beyond peak morning and lunch periods has been a persistent challenge. Starbucks, despite its dominance in the coffee market, has repeatedly experimented with various strategies to attract customers later in the day, as was detailed in TheStreet.com report. These efforts have included introducing evening menus, launching a soda line, and offering buy-one-get-one promotions to drive business during slower periods.
While Starbucks manages to sustain profitability through its robust sales of coffee, drinks, meals, and snacks during busy hours, smaller chains and independent cafes often lack the same cushion. The struggle to fill the slower parts of the day remains a critical issue for these businesses.
The Covid-19 pandemic has fundamentally altered customer behaviors and routines, impacting the traditional business models of cafes and bakeries. As the pandemic eased, many companies chose not to mandate a full return to the office, instead opting for hybrid work models. According to the information in TheStreet.com report, this shift has been devastating for cafes and bakeries located near office buildings, which previously relied on a steady stream of workers grabbing their morning coffee, a quick lunch, or an afternoon snack.
The change in routine is not limited to urban office areas; it has also affected residential neighborhoods. Pre-pandemic, Starbucks and similar establishments could predictably expect long lines from 7 to 9 a.m. as commuters sought their caffeine fix, TheStreet.com reported. Now, with fewer people commuting regularly, the demand has become unpredictable, making it harder to plan and maintain consistent business throughout the day.
Many smaller cafes and bakeries have faced closures due to the dramatic drop in customer volume. Unlike Starbucks, which can leverage its scale and brand recognition to weather slower periods, independent and smaller chains struggle to stay afloat.
One stark example is Corner Bakery, a Starbucks-like chain that filed for Chapter 11 bankruptcy and was subsequently purchased for a fraction of its former value, as per TheStreet.com report. The case of Corner Bakery highlights the broader trend of financial distress and market consolidation within the industry.
