Upscale steakhouse chain files for bankruptcy
KUSA.com • • business
Key Points:
- 801 Restaurant Group LLC, owner of the upscale 801 Chophouse steakhouse chain, filed for Chapter 11 bankruptcy protection on April 10, citing financial pressures amid rising beef costs and declining demand for expensive dining.
- The company operates eight 801 Chophouse locations across the Midwest and Mid-Atlantic and also owns 801 Fish restaurants; it recently closed its 801 on Nicollet location in Minneapolis.
- Menu prices at 801 Chophouse are notably high, with steaks such as a $145 ribeye and a $143 dry-aged porterhouse, reflecting the premium nature of the brand.
- The U.S. beef industry is experiencing a supply crisis with the cattle herd at a 75-year low, causing beef prices to surge by 16%, significantly impacting restaurant operating costs.
- This bankruptcy is part of a broader trend of restaurant closures and bankruptcies, including major chains like Red Lobster and Hooters, driven by inflation, rising food and labor costs, and changing consumer dining habits.
