True Food Kitchen closes in San Diego amid bankruptcy filing

Key Points:

• True Food Kitchen, a health-focused restaurant chain that entered San Diego over a decade ago, has filed for Chapter 11 bankruptcy and is closing 12 locations nationwide, including its Westfield UTC restaurant, while keeping 34 locations open across 14 states.
• The chain, known for its anti-inflammatory inspired menu, gained prominence with Oprah Winfrey's investment in 2018 but struggled financially due to management turnover, unsuccessful expansions, and challenges adapting during the pandemic.
• Efforts to pivot to ghost kitchens and delivery services during COVID-19 led to staffing issues, and some locations suffered from low foot traffic and changing market demographics, impacting profitability.
• Industry experts cite high rental costs in upscale locations and customer confusion about the brand’s unique "better for you" menu as factors limiting sales and profitability.
• True Food Kitchen plans to pursue a court-supervised sale to find a partner aligned with its mission, but experts believe finding a buyer will be challenging amid the tough restaurant market conditions.